Culp, Inc. (NYSE:CULP) Q2 2020 Earnings Conference Call - Final Transcript

Dec 06, 2019 • 11:00 am ET

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Culp, Inc. (NYSE:CULP) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Executive
Iv Culp

that around.

Analyst
Marco Rodriguez

Very helpful. Then in terms of the gross margin performance that you had here in the quarter, another very solid quarter. On the Mattress Fabric side, you guys had pointed out the - obviously the operational efficiencies and some raw material -- on the upholstery side, you had product mix as well as FX, which I think you called out is another help in Q1. Can you maybe help us quantify some of those buckets justice where those where you're seeing the most leverage to these gross margin performances this year in the first half?

Executive
Kenneth R. Bowling

Yes. Marco, this is Ken. It's hard to quantify. As you've pointed out, there's been significant impacts this quarter. I mean the mix issue on the upholstery side is something that has been developed over time. The currency is one that has also definitely contributed but that can go either way sometimes. So it's kind of hard to quantify. On the mattress side, the changes that we have made recently and also the changes that were made previously, has certainly helped and so -- but there's a lot of things going on. And of course, as we look ahead, the impact of shutdowns and vacations and things like that will have an impact as well. But it's just -- we don't call them out because they're very difficult to quantify and we do talk about sustainability, which Boyd touched on and the risk of foreign exchange, but we just really don't go there because it's really difficult to get it to exactly the way we want it.

Analyst
Marco Rodriguez

Okay, understood. Thanks a lot guys. I appreciate your time.

Executive
Kenneth R. Bowling

Thank you.

Operator
Operator

There are no further questions over the phone at this time.

Executive
Franklin N. Saxon

Okay, thank you everyone for joining us on the call today and we look forward to updating you after our third quarter. Have a great day.

Operator
Operator

This concludes today's call. Thank you for your participation, you may now disconnect.