CULP - Culp stock drops aftermarket on Q4 guidance cut

Culp (NYSE:CULP) stock fell 5.9% postmarket Monday after the mattress firm lowered its Q4 guidance due to COVID-19-related lockdowns in China and further weakening in domestic sales. CULP now expects Q4 net sales to be down significantly vs. Q4 2021 and projects consolidated operating loss of $6.5M-7.5M. It earlier expected Q4 net sales to be slightly lower vs. Q4 2021 and consolidated operating income to be comparable to Q4 2021. The company expects to end Q4 with ~$10M in cash and no outstanding borrowings. "Our China operations have been closed since Apr. 1... we now expect the closures to continue for at least Apr., which will prevent us from making up any delayed sales before 2022-end," said CEO Iv Culp. He said mattress fabrics sales in Mar. and Apr. fell materially as manufacturing customers reacted to slowing demand by curtailing inventory purchases. "... we do not expect the magnitude of the decline

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Culp stock drops aftermarket on Q4 guidance cut