American fabric manufacturer Culp posts Q2 FY22 net sales of $74.6 mn

The sales from upholstery fabrics segment were $33.7 million for the second quarter, down by 8.5 per cent compared to sales of $36.8 million in the second quarter of fiscal 2021.

“As previously announced, our results for the second quarter reflected lower than expected sales, primarily for our upholstery fabrics segment. Several external factors affected our sales results for the quarter, particularly COVID-related shutdowns in Vietnam and customer supply chain constraints for non-fabric components, while profitability remained pressured in both of our businesses by the continued rapid rise in freight, raw material, and labour costs,” Iv Culp, president and chief executive officer of Culp Inc, commented on the results in a press release.

On the other hand, the financial position also reflected total cash and investments of $36.6 million and no outstanding borrowings as of October 31, 2021.

During the quarter, the company’s Board of Directors has approved a five per cent increase in the company’s quarterly cash dividend to 11.5 cents per share, marking the ninth straight year of increasing the annual dividend. 

The company also repurchased 73,002 shares of its common stock in the open market under its existing share repurchase authorisation, leaving approximately $3.2 million available under the current share repurchase programme.

Fibre2Fashion News Desk (DD)