Culp, Inc. manufacturers, sources, and markets mattress fabrics and sewn covers used for covering mattresses and foundations and other bedding products. Culp manufactures upholstery fabrics, including cut and sewn kits, primarily used in production of upholstered furniture.
The biggest news in the last 12-18 months at Culp is the acquisition of 80% of eLuxury, which is an online mattress retailer mostly selling in USA.. You can read the news release here. The acquisition was not separately identified in the Culp 2019 Annual Report as a capital expenditure and is included as part of the general expenses. The price of the acquisition is therefore, accounted for as a business expense and reduces profits for the Financial Year 2019.
The share price of Culp Inc has been declining since about the time of the acquisition of eLuxury. The price has declined to the point that Culp is now starting to look cheap against earnings and assets and is possibly offering an opportunity to value investors.
You can see the recent price decline in the chart. Click on the chart below to see more charting options from TradingView.
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