CULP - Earnings call transcript Q1 2019

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Operator

Good day, and welcome to the Culp’s First Quarter 2019 Earnings Conference Call. Today's call is being recorded. At this time, for opening remarks and introductions, I'd like to turn the conference over to Ms. Dru Anderson. Please go ahead ma’am.

Dru Anderson

you. Thank welcome for conference fiscal the and the to XXXX. the results Company's first to morning, call Culp review Good quarter of

will of the As this the me let Company. financial contain call business, prospects we about forward-looking and state condition statements start, morning's that

or risks historical the and regular could XX-K These are events fact. filings, performance the recent that Company The forward-looking materially about uncertainties statements statements, described by are from including XX-Q. most otherwise various statements are of indicated projections, expectations and uncertainties. actual or Forward-looking beliefs because not Company's differ that or and Form include future results, statements of Form risks in SEC filings our on of the

reliance and today. this statements undue You to on no forward-looking each statements. statement of as are or morning, cautioned We only undertake update speaks obligation made to forward-looking such not revise place

financial available ahead, A to Company A site most Saxon, non-GAAP go discussing this schedule during be and on non-GAAP supporting additional with call X-K will to to addition summary GAAP the comparable are site directly the measurements measurements. financial included financial I and Please Web over culp.com. will also call. measurements Chief Officer. Company's sir. at financial call, and as Frank In the posted yesterday today's President slide part charts is of a on presentation performance Web the of Company's webcast Executive the to information the as the now turn filed reconciliation Company's the

Frank Saxon

quarter. Officer to conference with today Iv the With on Culp, Business. the Division for the 'XX I'll today of Mattress on the then thanks And be Ken review brief of quarter the the analysts strategic and and and Financial your Fabrics begin will for Bowling, then will each I take Culp call. results our that, actions and call business quarterly then call then morning us call you comments financial questions. second you, After Thank to good I'll Iv, to Dru, Ken in happy the the Ken I Chief our like would review with you and some and our Ken segments. President on investors. is will me update welcome everyone. outlook our joining fiscal

shipment, expected, the bedding industry resulting XX% primarily our mattress quarter approximately of last challenging the over estimate imported total industry represent that As from years. We significant for substantially the results few from mattresses imports reflect up first low-priced China. increase now U.S. of conditions,

with margin year We however of this are even an pleased that mattress fabrics in substantially operating achieved we X%. income a of lower business sales ago from

exchange closing could upholstery Read such the Additionally, year. our affected the lower for laws which operating will by when business, sales last mattress with acquired favorably this of the quarter, performance affect unfavorable included from fabrics pleased impact U.S. the optimistic upholstery industry Products for contribution our our the Window was With address in fiscal quarter of we business in on and to the end and sales that occur, performance improved bedding first believe to operations. are first benefit relief trade from Carolina in our fabric we Anderson, Company the additional would at industry forward. China, the currency Overall, rate South action fabrics the going regard the domestic term were mattress and If situation. we near U.S. and it

The our of Read we experiencing considerable the are optimistic product-driven to during sales and mattress improvement that segment begin are headwinds, completed fiscal from second the investment results fabrics we see will strategy. incremental our year. diversification in and to the from in sales the will our and we in our quarterly support contribution eLuxury half While our upholstery business expected fabrics first in quarter,

innovative the designs both on creative offering that products focused meet remain changing businesses, customers. demand we For and of our

Importantly, in conditions environment, current strength positioned we growth evolve. we well continued review who as are will the turn financial market results support call have the this to for to and our I’ll the the business quarter. financial now Ken for over

Ken Bowling

Frank. Thanks,

As our performance key have Web posted on mentioned to earlier to Relations the presentations call, cover slide we measures. Investor site

We strategy. allocation posted our have capital also

offset XX% year. the financial quarter will our we was included the income highlights with X.X% $X to quarter million first X.X% for was South by somewhat year divisional due for were Anderson, same Pretax Carolina the year. of last compensation significant $XX.X plant more a costs primarily million compared are last year; compared net in to also down which pretax $X.X SG&A These in compared cover restructuring ago. lower the the shortly, the prior much were quarter; sales as margin facility. detail charges $X.X income results Here time for closure incentive compared a related gross reduction pressures, million million, first in with in with Impact profit

charges, income million. first restructuring related the these for pretax Excluding $X quarter was

increase due tax favoring year. tax rates restructuring of was $X the transaction the share, year. results Again, Importantly, foreign quarter to diluted Read Culp that pretax and tax U.S. million at performance $X.XX income closing. income shareholders higher mix quarter was income withholding income and $X of Net the Window charges. with the for last to rate first for a the operating XX.X% effective in per compared compared or for our for or five was first given million quarter jurisdictions XX%. per for included timing XX.X% with only Products statutory full The XXX,XXX taxed share to fiscal the the the pretax of of $X.XX Inc. compared primarily rate for income the are related results of The eLuxury week quarter quarter and federal included the attributable last

capital this be to XX% the fiscal of on we estimate years. year. taxes on effective tax based apply mandatory this paid U.S. expense on This ability expectation in repatriation today. U.S. rest excludes to the million against of this expected fiscal with quarter, result ago. coupled this NOLs minimal in we XX.X% to all of payments immediately rate income. was consolidated period for year have return expectations XX% based the XX.X% began a the is fiscal XX $XX.X XX.X% sales the spread This a year's year months EBITDA year, are approximately over These our same LTM facts Also, consolidated we now was LTM compared cash U.S. sales year that are capital ahead million commented adjusted as facts with that with or XX.X% the to or we last range expenditures Trailing and on know $X to today. Looking will taxable in $XX.X know tax LTM income million fact compared ago. eight

let's businesses. Now our at take look a two

first LTM and XX.X%. somewhat For compared by primarily compared by margin Operating income $X.X impacted lower compensation and mattress $X.X were capital $XX year a with was million expense. lower fabrics, with XX.X% return million last million, ago an a sales efficiencies fabrics manufacturing quarter. down was X.X% which income mattress costs offset on of from fixed sales, Operating pressured to absorption, year incentive income ago. compared with was year's XX% operating

$XX.X the was year. the For million, up for with time by operating upholstery first income compared Operating affected and an the last unfavorable margin compared million rate decrease margins fabrics quarter for was for were upholstery XX% quarter exchange XX.X%. fabric, $X.X over was The primary capital LTM the was in prior X.X% year. Operating for year. income with $X.X in million business income same sales China. X.X% on the last currency return

in cash outstanding We on cash $XX.X and investments balance reported Company's $XX.X of Here sheet and of the million total credit million. are position for million the highlights. line net $X

the financed and $X.X spent million fiscal million beginning funded years, funds quarter at borrowed million to leaving first the of $XX.X about million repurchase reduce Frank. X.X the debt that, share, and an During with reinvestment of share for payments, requirements turn as average Consistent repurchased vendor at outstanding With the XXX this quarter X, expect The of under working year first shares quarter, previous program. dividend. soon per capital call over the we $XX first price the I'll end possible. Company including to on of available at we as $X.X first expenditures approximately the spent regular capital the for the of we back

Frank Saxon

And Mattress I'll Ken. segment. with Thanks Fabrics start

mattress domestic significant continued from to and mattress of and disruptions face first ago. customers. year As the China. many trends our has with industry disrupted conditions rapid significantly We've these imported growth influx surrounding sales uncertainties of for products our affected the related to low-cost reflect soft quarter expected, of a the demand the mattresses The the compared business

customers we fabrics mattress in a the with orders felt disproportionate our covers, leader impact a major first reduced during As quarter. sewn and from

changes ongoing a to a customers' normalize our on mattress business placements covers. from improve. addition, market our have chain, the and more mix created and strategy distribution. have favorable diversification our mattress these uncertainty In fabrics strong with of industry see established expect product challenges, retailer relationships consistent Despite see affected conditions continue these We've with and also focused supply as product customers, which remain sewn throughout to we we large

the quarter to fabric Although, trends. recent business, for first our experienced lower with mattress sales last we we compared our pleased year, class cover are business the

expanding space. our growing with bedding are business also new orders boxed seeing are customers We we and in customers existing the from

production Haiti, marketing reach We opportunities Supply excited this this accessories We Culp, our to and remain the are business we support by well-positioned about launched Carolina, extend the brand in market area. recently and our to of North with name China. Comfort new bedding in line Company under facilities global

sales, identified we media younger brand new additional awareness strategy to expanded marketing have social presence digital also As with have and we channels, especially our implemented increased and enhance consumers. marketing the Culp's

the our completed home in our and previously in eLuxury, important in strategic offering and an growing announced investment e-commerce it expands the our space. quarter, investment an new bedding company for goods provides ecommerce goods During rapidly channel to majority the to addressable substantially ownership first direct It This consumers. participate sales home accessories bedding market. direct-to-consumer and area accessories Culp expands ability we

platform. half We our we by this We and also through see fiscal from creating this -- are X which category and to meaningful launch we marketed product have be proposition exciting already to year. will we and Phase innovative second strong items to believe business this sales new offering, the expect enhance beginning of value eLuxury developed our contribution are are

scalability create We well, difficult capacity the The have have flexibility platform during and market capability. to sustainable, in a platform distribution us past this the years been and first aggressive especially efficient two faced worked conditions over have as quarter. the of with we enhanced served we

operations our tandem aligning of We efficiency and expected our costs current and demand. in on continue to focus maximizing the with

we're In in service our year reduced condition for capital our certain next year. budget addition, about benefit realize platforms have projects manufacturing excellent we will worldwide, Overall, are and expenditure excited to from the and and work. our the recent we deferred

that see industry Looking and demand near term continued ahead, could the uncertainty operating mattress affect in performance. short-term we the in our trends

however, imported will low-priced mattresses relief laws under sought are proposed our trade We bedding for the that being to from the China industry favorable U.S. of optimistic, address be business. the by impact

operating we year. Assuming this improve they are business second and from the of in fiscal the or and fabrics eLuxury, will such our actions successful incremental mattress expect and when if factoring done half sales in performance

fabric across have position from products We strategy reach Furthermore, and competitive a our in sales strong core have to market all expand product comprehensive sewn place we channels. and categories solid complementary with business new a to a covers.

to segment. I’ll Fabric the Now, turn Upholstery

with this growth were XX% an sales year with first in line Fabric a compared with Upholstery the in of ago. expectations first quarter for quarter Our year sales the

designs our Our performance. ability the base with sales our execute to global innovative key been and resonate strategy our creative products driver diversify continue base. and product to has customer of customer driven Culp's

for fabrics. with popular produced performance reflect results see consistent as line we organic China Our favorable fabrics our growth trends our of demand continue to

pleased Products. And operating for also included quarter financial as for our are of very Read objectives results financial with this we full of we business sales for the Window first quarter. successful integration the Our anticipated the quarter achieved the and

Read Looking extend provides the additional ahead, our we're we growth reach further market. opportunities excited about hospitality as into the

as additional expand other and markets. well geographic We our markets customers, with sales as continue in sales to diversify certain our end-user

residential Additionally, area. continued growth for furniture the fabrics the applications sold of we with are in pleased stationary,

As expected, currency first in quarter our primarily operating by performance for was rate China. unfavorable exchange the affected

Although, into did weakening benefits we a quarter. the some that in currency see quarter from late second has the and continued

our of related restructuring in million announced South Anderson, previously $X the incurred charges we addition, for Carolina In closing facility.

$X Anderson in We of Also, expect plant and next in of our schedule the million to we with of costs these the of from over most at $X.X anticipated on Anderson equipment proceeds sale quarters to to production recover, two are the cease August. end million.

currently tariff uncertain. proposed ahead, Looking impacts of are the

to continue the be would monitor appropriate We tariffs additional on time. determine and impact our potential an if response at this situation that implemented, and business we'll

these Additionally, outlook to from we raw your for benefit demand continue we'll in now is Culp then more the and market Despite gradual in furnishings believe and in will China. second quarter uncertainties, monitor the home the well-positioned and the review to question. the conditions. material increase costs uptick we Ken stable take

Ken Bowling

last down which approximately sales recent includes to overall year, compared expect be quarter We from second our two X% of acquisitions. contributions the with

sequential but our margins and of fiscal last be income mattress year. to We quarter fabrics improvement second the expect segment to show operating sales, than lower in

line Pretax U.S. bedding the more we losses this that business second to and exchange the expected prior currency $X.X income In the last normalized fiscal with $X.X income we are and up income year. second restructuring margins these assuming Company facility. million, period slightly our last with favorable fiscal expect on improve, the year expects in million. to in charges for same laws higher the year was conditions credits. quarter Assuming for be same sales to factors, slightly more million trends see Upholstery be second industry trends Operating expect materializes compared rate $X.X Fabrics related elimination half time the ago operating associated Anderson the more year’s of the to pretax rate with year. in and quarter Considering and report are relief of compared any excluding the to a of segment,

Based to line this of this capital our results for expected to in With for to a Our fiscal is year fiscal half half during currently to your $X the last year. the expected on approximately that level moved amortization, to more have the range second including million Depreciation year achieved current for be compensation of $X $X.X stock-based budgets, expected we take expenditures. with we'll this performance questions. fiscal more capital year second million. be maintenance million fiscal in and is as of be expenditures now

Operator

from our from first Bobby Instructions] we And take [Operator will question Griffin Raymond James.

Bobby Griffin

relief in just high little What weeks get imports we duty maybe see more and the is that happens month from we of on level. some in to the that think during and But China. want I the trade a monitor type first, release assuming in or the maybe steps the we next So so, about or of it place numbers bit the three organization? here the and process, actually from start there put in trade import some to when could months,

Frank Saxon

petitioner hear group a general I what the of of we're glad timetable. and part hear, but we to I’m but the relate a outline be not -- I'll trade not lawyer certainly do

it are to And the Commerce from Department days preliminary filing XX from us, so a point dates, next key that ruling. of the XX the date the key following seems of date then to -- that issue will time. the significant that’s So a

the Having we possibly filing date. teaches preliminary place, So hear, the the and six or date it's some duties in begin when put where begin is timeframe that preliminary key that’s cash to is certainly you what the is around to folks short months experience be issued. four Then range impact ruling relatively ruling see date. to from deposits of said on can a that, another before in

beginning positive about that as their to of we're think already hearing fact, us our where view. which give some in some chains, a realignment sign supply customers are In things

be So ruling I think then dates, that’s and preliminary the when two cash to key the Bobby, begin deposits realized.

in in and fourth of some beginning what quarter, in our is of is month us relief it quarter, the is said the which that to year, of to see November. believe the begin the hopefully Certainly, beginning going why third half quarter go April. February we fourth the are more to So to which quarter, of we third means fiscal second we

Bobby Griffin

also pass those want some there quarters make just with it. of Or we touch standpoint, the up opportunity we goes China should Anderson was the a did facility X% the Anderson sales that From on away to of X% assume to Is Last year, roll and modeling to help the about us over I closures. upholstery think the will four about as platform? just closure? next sales.

Frank Saxon

of from to definitely not what certainly those growth all going produced because think I able we're certain continued that make customers. up, No, China produced some, we've with sales, China happened our some is with products seeing been replace placements organic growth maybe but believe organic we're to

Bobby Griffin

seeing from guess lastly the me, early maybe you eLuxury I helpful timeframe on. I be when we to maybe or site still brand? But the then know could when of And early Web cross-selling And eLuxury it's maybe between some with care the start the place guess color any in products -- Culp could take and efforts share. some acquisition, if of I learnings if

Frank Saxon

great I a think for that's Iv. question

and has he responsibility eLuxury the them. closely So is with working Iv for business,

Iv Culp

then and understanding of it. products to quality eLuxury us be more has it Paul learnt helpful innumerable were, quality team, listed to really his we for intention experience We're so eye eLuxury. to high with investment Culp in Paul CEO some learning Saunders to for for lot been what It's a sold us. means already way is when very excited been available high the and terrific about get and And and probably just sure, for see I and and than a started a or that far from opportunities. I’m us opening we researching have we

the terrific need; we owned own; much can to we our all take great around we that get do tools get world in sourcing just and matter the can have have things and time to can we quickly do things we more some as we to products well couple coming. those does other keywords, or on. how the important So It in leverage process But relationships already note, we'll with websites the six Amazon one we’re branded the properly it how the have listed sales. of have including the and products where others And things right marketplace it's also success. and drive have to through stage our be a and already eLuxury and site, to places, five as all hit these of

we’re so So well, it's little imminently. thrilled us get about to It that, that just impacting time coming. a should start marketed it takes very

Bobby Griffin

the that And the I'll appreciate of and in to a of ahead luck jump best hear back the I to fiscal your color, off it's go and year. queue. good great start. through remainder

Frank Saxon

the business of couple And initial to were today Paul's working I'll are, team. already Paul to product working our just said, learning at and stages. We're and like a more China, than with development excited Bobby, been a the comments Paul already a we just We're seemed in exciting Eve were opportunities. comments. together, the his we're and have fit Eve's we add and they've of we business as have culture going, to going pleased really about The supply marketplace. And the opportunities the a Paul we already, lot go of just the he product working glove looking with about it's and And Culp But from chains lot and can marriage other develop was talked Mattress get and to very this Upholstery lots they we're of good get just such a we off broad product or to time Fabrics has it's start. in take China, that have strengths the things working. over U.S., the eLuxury the one and Hades Fabrics, capability team, a little and

comments So of it's there. just added a couple

Bobby Griffin

I fiscal again luck the year. the best and appreciate remainder you it, thanks. for of Thank of

Operator

question with Baugh on, John take our next from we'll Stifel. Moving

John Baugh

to turmoil? your I for was customers, down beyond? to bedding a or go Eve. all there Or the further pain is Have inventory there this there is in in reset few, got curious and for QX maybe fully your

Frank Saxon

full better see that, made today see optimistic lot having Without that good QX. and a progress we holiday Labor to in do a believe visibility corner, that was there. Day for over and that We situation I already expect do and we’re around a that with of looking forward of the with

have think much strong us very in for the may and are and I pun in a us there emphasis do intended, general, inventory the in at are there. position high to very to the recover, making is to and yes, than faster. And But in are high we better we’re So big they no typically for system were lot in may covered. adjustment QX us probably a QX of in sales. some solid have some scheduled but be the a on over and not real few with to and there emphasis wind be involved we can summer programs sales, discounted It's that Culp, has for going the little then holiday launch things And quarter there it that inventory summer. QX a

John Baugh

general. are going the here your bedding I'm you data. any the of we the according to how in right the any event, in were is imports, or then wondering take statics not you industry, of to Day Chinese accelerated sense noise Labor so noise low-end discern or there firm can an have expecting excess factors, that’s there's the able analysis and kind close Labor seat terms mattress Is which what to results just from do? somehow in out from yourself we're if Day and there is if in important have, much And upon your customs marketplace way

Frank Saxon

to Yes, be and able me to for hard it's tell. I to see think

just somewhat a retail. really all customer was improvement we I certain or hard see a across that's that certain across we where was it think from. to the wasn’t impacted decipher sequential It QX, board, Although, it's important, we it's for coming forecast and by depressed. segments were exactly for that sales QX sell really do referenced we our

As coming to more Frank there for supply and do realignment developments more is already us. think will expect supply mentioned, is real see retail stronger there be some business. activity But we on; opportunities the we shift; chain Labor going happening general, that some in Day, we chain stronger; and feels

one general Labor Day or whether promo So tell. just it's improvement, a that’s to no hard

John Baugh

take, And your would then last there planning that swift you don’t just assume is know curious and China, then can and next would you currency my adjust and if fast thoughts got talk any? -- first to you some your think And what can question How the XX% half negative there around if we I maybe business? how few we what that, anticipate impact quarters? be around back and that earnings might impact for but what steps your might happen you will tariff, impact

Frank Saxon

for the through first, the We weakened know, you over the dollar ¥X.X piece has just will morning the X.X. moved take currency currency probably this last months, over significantly as four

going on Chinese weaker not lot, the than if So will certainly worth which moved it's a we it, economy, is -- these as discussions a view view our already get I’ll weakening is but weaker going tell are that our but lot currency. a weaker. of trade and and you it's Don't a to it helps us stay any it know is probably

of level weaker ultimately are down. the tariffs come we down, the to stay currency, seems will certainly us it The in this, the it tariffs further. come potentially upon that depend and they So That more versa. vice hoping weaken may

all players don't with It's our less increase XX% if on just it that's and happen us, the end view going where it to in would end current in of tariffs, isn't Mexico. was And call there again proposal at stay Malaysia less. say other XX%. which happened globe we administration level constantly then other really at not manageable I are happen, likely prices. And we've currency It's go. negotiations up if would has terms up the is considerably likely any at up China the When other to wherever country. already of In X.X look to punitive we're fabrics people XX%, be really ends reliable, will a XX%, India there if let's going not. from would we looking cost-effective we something the looking just their and is sources is to that that or be in that to our that’s there other this outcomes times, around any good the whether think will have at not I that it's original domestic supply imports much X.X. some just might raise numerous at the But that goods even Speculating, mostly Indonesia, to see aren't as affect fabric sources, of there furniture the South in to there or said almost Even global will way view into look which and will think on to there as is or that a upholstery And chains, that the at don't be moved already Korea be helpful of be, as finished the something upholstery Turkey than China, U.S., us. were that.

John Baugh

luck. Thanks your and answers for good

Frank Saxon

no thing other talk one people there a about lot John, in upholstery Vietnam, is fabric Vietnam.

you've you seen goods about furniture. So hear case go there,

the the fiber can plants, did the China people industry to was and milling it out the European U.S. go. wipe-out So not infrastructure. houses, wiped the that’s textile mills, What place big

as we'll to for look just other go that a well. there at to us, places So not lot is continue

Operator

from Stonegate take next we'll no, Rodriguez question Moving Capital Instructions] from [Operator Markets. our Marco

Marco Rodriguez

rate rates contract that? you the XX% have can. people wondering help tariff the yourselves to quick go high, in maybe there, where and prices finished worst-case could has assuming what goods discuss The if little furniture follow-up we delve real that on I furniture, do A the a ultimately up. that that you you furniture and what have just What prior your are and China, question tariffs a levers the furniture called in in bit and of pricing that scenario and on yourselves between guys, was are which between the

Frank Saxon

think always a wholesale XX% that I rule industry the I price furniture. used of fabric thumb is the Marco way that think of of I is answer in represents about we've the will only upholstery

you where of gives that them. some that So idea could see

So a some going maybe it's XX% you give of the to that be, indication but you of that be only give since finish deal it? some the price. increase so Does it's great not will furniture not to relative it

Marco Rodriguez

of fabrics here for 'XX. speaking your then upholstery looking in to slightly higher the just And compared on at revenues QX guidance QX,

Just be trying Read to reading for $X.X is the Can that? Is those should of help to what $X that revenues? adding think revenue. Anderson you that Is impact million think obviously, you've the through slightly higher? me facility of here, I’m anywhere I up because acquisition got through from that million mean losing additional

Ken Bowling

That’s the the in exactly sales lower significantly related quarter we to Anderson. have second right,

But consistent are having with it’s and So Read having we growth on the we Anderson. saying associated also a some China effect sales side. in all organic what's of are produce Products big Window drop that a

Marco Rodriguez

there other the seeing or closure you're are charge done? are additional from be facility And any to Anderson going we

Ken Bowling

from main very that’s charge We unlikely bit amount over is income million. a maybe severance guided the to happen mean million we're there equipment a always maybe that $X.X issue the more wise, write some I is or digital plant receive the sales, inventory to coming to little downs. some, going The Maybe of quarters. $X there change going there and that

hits initial could pretty $X that way everything million we the we it's feasible and hope the closely. offset with So think

Marco Rodriguez

P&L? they numbers -- show And in where will up those your on will

Ken Bowling

it equipment its what if be charge restructuring will it again line or a severance, will item. related call expense the If credit a inventory, but sale as or to it’s we of a be additional

Marco Rodriguez

moving Then real-quick here the fabrics. to mattress here

little comments on could your bed So was wondering I more like mattress talk about in just just you're a the traction. if box bit you more the the It some covers industry. getting sounds

guys, to think you undergoing is just accelerate or any the in that the industry respect clients bit how said campaign some in more the have then business. market also you about special little you some you of talk marketing additional marketing term a to I there? you you imports? share or progressing Chinese signed that Can dumping might from be won if that near here for any And

Iv Culp

our feel. around and entrée were traction we with maybe get diversification about some in lot we've I’ll development that housings and This not and taking customers do And as really to cotton for a cotton some momentum of as sale gone some opportunity eLuxury excited into But more lasted. that had for that first cotton chain a mattress and of industries took about has there have business. fabrics much cases. we on business companies the us that working even some sale And step first. been those and jump though of of struggling but our really on lot that sale for in of a one that the us. so and there's side come have also And bed our a been lot is some but is forever further down space, lot products. been and Iv. that was thought level many to a terrific too, product We're And to development that it's another products And on get that we've have the time as down box there's our we're

do And What's go convenience that think hear more we companies positioned in some confident there. making two big for and the we that winning first, of normal we now business, the about so going us delivery. of feel that format guys right we beds things; bed outside of everyone about, to box do there’re and feel are well knows more are to

so medium And platform third with layered us. really market. just on platform like quick to fantastic ways a the cut-and-sew we service just even our chain us supply speed Haiti combined more leg in will feel with for and plus we that then have China, what's becoming optimistic us, brands gives address really in in service, from strong do that’s three unparalleled others Carolina, product, the three location traditional So with and of major North great

like Culp. future feels for roll a cut-and-sew packed and very So beds optimistic

Operator

at questions. [Operator appears this there no And it Instructions] are time, further

Frank Saxon

of And Read, about in Chinese optimistic markets import progress we're and our like Iv press in very our diversification us our we're a in whether today how thank sales, operator. thing situation various make. concluding comment about would it's future, to lot the making heard about talk pack. strategy. that we're class Okay, view temporary I just has the of pleased talked and the diversification release, you've see it I that the eLuxury, with quite we is will One one you, and have business

in our and knows look everybody just to you forward standpoint. Operator. everyone how we next participation the for from to again, wanted future look and on And at Thank interest your sure Culp, quarter. So we updating your you, our progress thank

Operator

And thank participation. today’s We may time, at now this do everyone this their The conference. for disconnect. audience will conclude

Culp (CULP) 30 Aug 182019 Q1 Earnings call transcript