HIGH POINT — Culp Inc. posted net sales of $79.3 million for the third quarter of fiscal 2021 ended Jan. 31. This is up 15.8% over the prior year, with mattress fabric sales up 15.1% and upholstery fabric sales up 16.4% compared with the third quarter of last year.
“We are energized by our financial performance for the third quarter of fiscal 2021,” said Iv Culp, president and CEO. “These results reflect strong growth in sales and operating performance compared to the prior-year period, as well as exceptional execution of our product-driven strategy and the continued resilience of our robust global platform.”
Culp said the company is encouraged by the performance of both its mattress fabrics and upholstery fabrics segments during the quarter. The growth in both segments was driven by a combination of strong demand for products and the benefits of market share gains and product innovation, according to the company.
As consumers have remained focused on the home environment, Culp’s diversified manufacturing and sourcing capabilities, along with a stable supply chain, have allowed the company to effectively service the increased demand from both new and existing customers, the company said in a statement.
“In addition to our positive momentum in sales and operating performance, our cash flows and balance sheet also remained strong, and we ended the quarter with $51.8 million in total cash and investments, with no outstanding debt,” Culp added. “We are also pleased to announce that our board of directors has reinstated our share repurchase program, which was previously suspended in April 2020 due to pandemic-related uncertainty.”
During the third quarter, Culp posted net income from continuing operations of $2.1 million, or 17 cents per diluted share, compared with net income from continuing operations of $1 million, or 8 cents per diluted share for the prior-year period.
The board of directors has approved the payment of a quarterly cash dividend of 11 cents per share. This compares with 10.5 cents per share paid for the same period last year, reflecting an increase of 5%.
Culp’s net sales for the fourth quarter of fiscal 2021 are expected to be up approximately 40% compared with the prior-year period, with the increase in mattress fabrics sales expected to be moderately higher than this percentage and the increase in upholstery fabrics sales expected to be moderately lower than this percentage.