Home / Knowledge / News / Apparel/Garments / Pre-tax income at Culp soars 21% in Q3FY16
Pre-tax income at Culp soars 21% in Q3FY16
03
Mar '16
Courtesy: Culp Inc
Courtesy: Culp Inc
For the three months ended January 31, 2016, pre-tax income at apparel retailer Culp was $7.2 million, up 21 per cent compared with $5.9 million in the third quarter of fiscal 2015.

Net sales were $78.5 million, down 3.4 per cent year on year, with mattress fabric sales down 3.1 per cent and upholstery fabric sales too down 3.9 per cent in the third quarter of fiscal 2016.

“This compares with an exceptionally strong sales performance for both divisions in the third quarter last year,” a Culp press release stated.

Non GAAP adjusted net income reached $5.9 million, or $0.47 per diluted share, for the reporting quarter as against $5.0 million, or $0.40 per diluted share, for the prior fiscal's third quarter.

GAAP net income totaled $4.9 million, or $0.39 per diluted share vis-à-vis net income of $3.8 million, or $0.31 per diluted share, in the fiscal ago quarter.

The company purchased 110,776 shares of Culp common stock, representing nearly 1.0 per cent of outstanding shares, for $2.4 million at an average price of $23.79 per share.

Culp added that its financial position remained strong with cash and cash equivalents and short-term investments of $36.0 million.

“This was so, even after spending $19.6 million in dividends, capital expenditures, debt repayments and share repurchases through the first nine months of fiscal 2016,” the retailer observed.

The projection for the fourth quarter of fiscal 2016 is for overall sales to be comparable with the previous fiscal's fourth quarter.

Pre-tax income for the fourth quarter of fiscal 2016 is expected to be in the range of $6.7 million to $7.2 million, while pre-tax income for the fourth quarter of fiscal 2015 was $6.7 million.

“The projection for the full fiscal is for overall sales to be slightly higher than last fiscal,” Culp informed.

Pre-tax income for the full fiscal is expected to be $27.5 million to $28.0 million, compared with $23.0 million last fiscal.

The highest annual pre-tax income in the company's history was the $23.0 million achieved last fiscal.

CEO Frank Saxon said, “While we have achieved higher overall year-over-year sales through the first nine months of fiscal 2016, we did experience a slight drop in the third quarter.”

“We have remained focused on our top strategic priorities, which is to drive product innovation and creativity throughout our company and provide a product mix that meets demand,” he added.

“Our efficient and flexible manufacturing platform supports this strategy, and we continue to make the right investments to improve our operating efficiencies and overall capacity,” Saxon also stated. (AR)

Fibre2Fashion News Desk – India


Must ReadView All

Chinese firm sets up textile-garment chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up textile-garment chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

CMAI hails review of FTP as 'progressive package'

Apparel/Garments | On 13th Dec 2017

CMAI hails review of FTP as 'progressive package'

The Clothing Manufacturers' Association of India (CMAI) has hailed...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Urmil Arya

Sushila International, a well established textile organisation established ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search