Culp, Inc. (NYSE: CULP) saw its shares falter Thursday on fourth-quarter financial figures, which were severely affected by the coronavirus pandemic and included non-cash asset impairment charges in connection with the related business disruption.
The company, based in High Point, North Carolina, reported a Q4 net loss of $2.26 per share, versus a year-ago net loss of $0.12 per share. Its sales dropped 29.3% to $47.4 million, missing analysts’ estimates of $58.35 million.
Commenting on the results, CEO Iv Culp, said, "The broad economic disruption caused by the COVID-19 pandemic significantly affected our performance for the fourth quarter and fiscal 2020. As the fourth quarter began, we were executing well on our strategic initiatives and generating momentum in our businesses.
"However, the impact of the COVID-19 pandemic began to materialize in the second half of March as retail stores across the country closed and many of our customers shut down or limited their operations for several weeks."
The company continues to closely monitor the impact of the COVID-19 pandemic and take action to safeguard the health of its employees, serve its customers, and manage its liquidity.
The company paid $5.1 million in dividends and $1.7 million in share repurchases (142,496 shares) during fiscal 2020. In March 2020, the company’s Board of Directors approved an increase in the company’s share repurchase authorization back up to a total of $5.0 million.
CULP shares tumbled $1.38, or 13.8%, in the early going Thursday to $8.62.
