Culp, Inc., a maker upholstery and mattress fabrics, reported fiscal first-quarter earnings results on Wednesday that were “materially affected” by the COVID-19 coronavirus pandemic.

For the quarter ended Aug. 2, the fabric company reported net sales of $64.5 million, a decline of 8.8 percent from the same period a year ago.

The company added that mattress fabric sales dropped 7.1 percent during the quarter, while upholstery fabric sales fell 11 percent compared to a year ago.

For the quarter, Culp delivered adjusted earnings per share of 8 cents, versus the 16 cents per share reported a year ago.

In the earnings release, CEO Iv Culp struck a tone of optimism, noting that the company saw better-than-expected increases in orders and shipments during the last eight weeks of the quarter across its mattress and upholstery fabrics segments.

“We are especially pleased with the substantial sequential improvement compared with the end of the fourth quarter, going from a significant pre-tax loss to profitability. We believe these trends are primarily being driven by a surge in consumer focus on the home environment and overall comfort, leading to an increased proportion of discretionary spending moving to home furnishings.” Culp said in the release.

Despite the uncertainty surrounding the coronavirus pandemic, the executive added that the company is “cautiously optimistic” based on its products’ current demand trends.

The CEO proceeded to tout the company’s balance sheet and improved liquidity position compared to before the pandemic hit.

“We are confident that our product-driven strategy, strong management team, and solid financial position will enable us to overcome the near-term headwinds and capture market share as we continue to demonstrate the resilience and strategic advantage of our global platform and stable supply chain,” Culp said.

At the end of the quarter, the company had $47.4 million in cash with no outstanding debt compared to $38.7 million at the end of the prior quarter.

The company also maintained its quarterly dividend of 10.5 cents per share, payable on Oct. 15.

Shares of Culp (CULP) were last trading down 7 percent, or 92 cents lower, near $12.19 on Thursday.