Culp, Inc. is a leading marketer of mattress fabrics and upholstery fabrics for bedding and furniture in North America. The company manufactures, sources, and sells a variety of fabrics and sewn products to bedding manufacturers and the residential, commercial, and hospitality furniture industries. Culp's operations span across multiple countries, leveraging strategic sourcing relationships to optimize costs and enhance competitiveness.
- Mattress Fabrics - Manufactures and markets mattress fabrics and sewn mattress covers to bedding manufacturers, including knitted fabrics, woven jacquards, converted fabrics, and sewn mattress covers.
- Upholstery Fabrics - Develops, sources, manufactures, and sells fabrics for residential, commercial, and hospitality furniture, including woven jacquards, woven dobbies, velvets, suedes, faux leathers, cut and sewn kits, and window treatment products.
- Read Window Products - Provides window treatments, upholstery fabrics, and other products, along with measuring and installation services for the hospitality and commercial industries.
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- Given the anticipated sale of your Canadian facility to retire debt, can you detail the potential risks and delays associated with this transaction and how they might impact your liquidity and overall restructuring timeline? [Index 2][Index 7]
- With the current macro headwinds and tariff uncertainties, how do you plan to balance short-term pricing increases against long-term market share growth without eroding customer confidence? [Index 7][Index 18]
- As you cite an incremental $1 million in annualized personnel savings starting in Q4, can you provide more specifics on which areas these savings will come from and the challenges you might face in achieving them? [Index 15]
- The guidance expects a near return to profitability despite sequential sales declines; what specific operational efficiencies or cost reductions do you expect to sustain these improved EBITDA margins in the face of ongoing market weakness? [Index 7][Index 9]
- With consolidation trends in the mattress industry, how do you view the competitive risks versus opportunities, and what strategic moves are you considering to ensure that such consolidation translates into a net positive for CULP’s market share? [Index 19]
Research analysts who have asked questions during CULP earnings calls.
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
BekaertDeslee Textiles | This competitor is identified as a fabric and mattress cover producer in the mattress fabrics market, which is concentrated among a few large suppliers and niche producers focusing mainly on knitted products. |
Global Textile Alliance | This competitor is noted as a fabric and mattress cover producer in the mattress fabrics market, competing with Culp's offerings. |
Dorell Fabrics Co. | This competitor operates in the upholstery fabrics market, which includes a large number of companies ranging from large manufacturers to small producers and converters. |
Morgan Fabrics | This competitor is mentioned as part of the upholstery fabrics market, which has become more fragmented in recent years due to increased overseas competition and the entry of more converters. |
Richloom Fabrics | This competitor is listed among the principal players in the upholstery fabrics market, which faces intense price competition. |
Specialty Textile, Inc. (STI) | This competitor is identified as one of the principal upholstery fabric competitors, operating in a market with lower barriers to entry and increased price competition. |
ZhongWang Fabrics | This competitor is noted in the upholstery fabrics market, which includes a mix of large manufacturers and smaller competitors. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Serta-Simmons Bedding | Largest mattress fabrics customer | Mattress Fabrics | 13% of consolidated net sales in FY2025 |
La-Z-Boy Incorporated | Largest upholstery fabrics customer | Upholstery Fabrics | 11% of consolidated net sales in FY2025 |
Recent press releases and 8-K filings for CULP.
- CULP, Inc. reported consolidated net sales of $48.8 million for the fourth quarter of fiscal 2025 and $213.2 million for the full fiscal year 2025. The company experienced a net loss of $(0.17) per diluted share for Q4 2025 and $(1.53) per diluted share for FY 2025.
- The company completed its restructuring plan, which is expected to generate $10.0-$11.0 million in annualized savings and operating improvements.
- For fiscal 2026, CULP plans additional actions, including the integration of its two operating divisions and facility consolidation, which are projected to provide $5 to $6 million in additional annualized benefits.
- As of April 27, 2025, CULP maintained $5.6 million in total cash and $12.7 million in outstanding debt under its credit facilities. The company also extended its domestic credit facility with Wells Fargo for an additional three years on June 12, 2025.
- Due to macro-economic uncertainty and the fluid tariff environment, CULP is not providing specific financial guidance for fiscal 2026.
- On June 12, 2025, Culp, Inc. and its subsidiaries entered into a Third Amendment to their Second Amended and Restated Credit Agreement with Wells Fargo Bank, extending the asset-based revolving credit facility’s maturity to June 12, 2028.
- The amended facility allows revolving loans and letters of credit up to $30.0 million (with an additional $10.0 million accordion option) and a $2.0 million sub-limit for letters of credit.
- Availability is determined by a borrowing base of 85% of eligible receivables plus inventory advances (up to specified percentages and caps), with interest at SOFR + 175–225 bps and unutilized-commitment fees of 37.5–50 bps.
- The amendment also adds a springing fixed charge coverage ratio covenant and permits up to $2 million of investments in foreign subsidiaries, among other immaterial changes.
- CULP Inc. has executed a multi-year cooperation agreement with its largest shareholder, Seattle-based 22NW, LP, which will support voting at the 2025 and 2026 Annual Meetings of Shareholders.
- The agreement also nominates new independent director candidates, including Douglas Collier, Lynn Heatherton, and reappoints Alexander B. Jones, while maintaining the current board size.
- CULP Inc. is integrating its Culp Upholstery Fabrics and Culp Home Fashions divisions into a single business to enhance operational agility and streamline costs ( ).
- The integration includes closing the Burlington facility and shifting operations to the Stokesdale facility, with an expected $3 million annual cost savings, complementing $10–11 million in previous restructuring savings ( , ).
- Key leadership changes include the appointment of Mary Elizabeth Hunsberger as COO and Thomas M. Bruno as Chief Commercial Officer to guide the transformation ( , ).
- The company reported consolidated net sales of $52.3 million in Q3 2025, with a GAAP loss from operations of $(3.9) million and a net loss of $(4.1) million, marking sequential improvement from the prior quarter.
- Mattress fabrics segment performance showed a sequential operating loss reduction of 58.3%, while the upholstery fabrics segment continued to post profits despite challenging market conditions.
- Restructuring initiatives are nearly complete, with the company expecting $6.0–$8.0 million in cash proceeds from the Canadian real estate sale and maintaining liquidity of $5.3 million in cash and $5.4 million in borrowings.