CULP (CULP) Company Report

Culp, Inc. reported consolidated net sales of $53.2 million for Q2 fiscal 2026, a sequential improvement from Q1, but a decline from the prior year, primarily due to continued industry-wide softness. The company achieved an adjusted consolidated gross profit of $6.7 million (12.6% of sales) and an adjusted operating loss of $2 million, reflecting year-over-year improvements.
The bedding segment's sales increased to $30.8 million, up approximately 10% sequentially and over 2% year-over-year, with a gross profit of $3.1 million (10.1% of sales), driven by market share gains and a restructured cost platform. In contrast, the upholstery segment's sales were $22.4 million, down approximately 12% year-over-year due to market conditions.
The company is nearing completion of a multi-phase transformation, expecting to realize over $20 million in annualized cost savings and enhancements by fiscal year 2027 from initiatives including a fiscal 2025 restructuring and Project Blaze. These efforts contributed to a negative $1 million Adjusted EBITDA for Q2 2026, an improvement from the prior year.
For Q3 and the remainder of fiscal 2026, Culp anticipates steady consolidated sales performance, with higher expectations for the bedding segment, and projects continued significant improvement in operating loss and near break-even to positive Adjusted EBITDA. The company also expects to receive $4.7 million from the sale of its Canada facility in Q3 or Q4.

Dec 11, 2025, 2:00 PM

Transcript

CULP Reports Q2 2026 Results and Strategic Actions

CULP

Earnings

Guidance Update

Demand Weakening

For Q2 2026, CULP reported revenue of $53.2 million and gross profit of $7.2 million.
As of November 2, 2025, CULP's total liquidity was $28.1 million, comprising $10.7 million in cash and $17.4 million in U.S. ABL Availability.
The company completed Fiscal 2025 restructuring initiatives projected to generate $10 to $11 million in annualized cost savings and efficiency gains, plus an additional ~$1 million reduction in administrative SG&A expenses.
Fiscal 2026 integration and additional actions are anticipated to provide approximately $8 million in total annualized additional benefits, including savings from division integration and consolidation of U.S. upholstery warehousing.
CULP indicates that the bedding market cycle shows signs of extremely low demand coming to an end, with the mattress industry forecasted to grow 4% in 2026E and 8% in 2027E.

Dec 11, 2025, 2:00 PM

Presentation

Culp Announces Q2 Fiscal 2026 Results

CULP

Earnings

Guidance Update

Demand Weakening

Culp reported Q2 Fiscal 2026 consolidated net sales of $53.2 million, a sequential improvement from Q1, with an adjusted operating loss of $2 million and negative $1 million in Adjusted EBITDA, both improved year-over-year.
The bedding segment showed strength with sales increasing 10% sequentially and over 2% year-over-year to $30.8 million, and gross profit improving by 200 basis points to 10.1% of sales.
The company's strategic initiatives, including a restructuring project and Project Blaze, are projected to deliver over $20 million in annualized cost savings and enhancements by fiscal year 2027.
For the first six months of fiscal 2026, Culp achieved near break-even free cash flow of $10,000, a significant improvement from a negative $3.4 million in the prior year period.
Culp expects steady consolidated sales and near break-even to positive Adjusted EBITDA for Q3 2026, driven by cost and efficiency benefits.

Dec 11, 2025, 2:00 PM

Transcript

Culp, Inc. Reports Q2 2026 Results Amidst Challenging Market Conditions

CULP

Earnings

Demand Weakening

Guidance Update

Culp, Inc. reported Q2 2026 consolidated net sales of $53.2 million, a sequential improvement from Q1, but a decline from the prior year's $55.7 million, primarily due to continued industry-wide softness and tariff uncertainty.
The company achieved a Q2 2026 adjusted operating loss of $2 million and negative $1 million in Adjusted EBITDA, demonstrating improvement from the prior year's adjusted operating loss of $2.6 million and negative $1.1 million Adjusted EBITDA, largely due to cost and efficiency gains.
The bedding segment showed resilience with sales increasing 10% sequentially and over 2% year-over-year to $30.8 million, and its gross profit margin improved by 200 basis points to 10.1%.
Culp expects to realize over $20 million in annualized cost savings and enhancements by fiscal year 2027 from ongoing restructuring and integration initiatives, including a recent project expected to generate $3.5 million in annualized savings and price adjustments adding $2.5 million in annualized margin improvement.
For Q3 2026, the company forecasts steady consolidated sales and anticipates near break-even to positive Adjusted EBITDA, driven by improving gross profit and lower SG&A.

Dec 11, 2025, 2:00 PM

Transcript

Culp Announces Second Quarter Fiscal 2026 Results

CULP

Earnings

Guidance Update

Demand Weakening

Culp reported consolidated net sales of $53.2 million for the second fiscal quarter ended November 2, 2025, which represents a sequential improvement from the first quarter but a decline from the prior-year period.
The company's net loss per diluted share was $(0.34), an improvement compared to a net loss of $(0.45) per diluted share in the prior-year period, with adjusted operating loss improving to $(2.0) million.
The bedding segment's sales increased to $30.8 million, up approximately 10% sequentially and over 2% year-over-year, with its gross profit improving to 10.1% of sales.
Culp expects to achieve over $20 million in annualized cost savings and enhancements by fiscal 2027 through ongoing restructuring and integration initiatives.

Dec 10, 2025, 10:29 PM

Press Release

CULP, Inc. Announces Second Quarter Fiscal 2026 Results

CULP

Earnings

Guidance Update

Demand Weakening

CULP, Inc. reported consolidated net sales of $53.2 million for the second fiscal quarter ended November 2, 2025, which is a sequential improvement from the first quarter but a decline from the prior-year period.
The company's net loss improved to $(4.3) million, or $(.34) per diluted share, for Q2 FY26, compared to a net loss of $(5.6) million, or $(.45) per diluted share, in the prior-year period.
Adjusted EBITDA was negative $(1.0) million for the second fiscal quarter of 2026, showing an improvement compared to negative $(1.1) million in the prior-year period.
Culp anticipates achieving over $20 million in annualized cost savings and enhancements by fiscal 2027 through ongoing restructuring and integration initiatives.
For the third quarter of fiscal 2026, the company expects continued significant improvement in operating loss and near break-even to positive adjusted EBITDA.

Dec 10, 2025, 9:20 PM

8-K

Culp Inc. Reports Q1 Fiscal 2026 Results with Improved Profitability Despite Sales Decline

CULP

Earnings

Guidance Update

Demand Weakening

Culp Inc. reported Q1 Fiscal 2026 net sales of $50.7 million, a decline from $56.5 million in the prior year, primarily due to continued market softness and tariff impacts.
Despite lower sales, gross profit for Q1 2026 significantly improved to $7.2 million (14.3% of sales) from $5.1 million (9% of sales) in the prior year, driven by restructuring benefits in the bedding segment.
The bedding segment's gross profit reached $2.9 million (10.5% of sales) compared to a negative gross profit in the prior year, while the upholstery segment's sales decreased by approximately 20%.
The company expects to realize at least $6 million in additional annualized cost and efficiency enhancements from ongoing integration efforts, building on the $10-$11 million from last year's restructuring.
For Q2 Fiscal 2026, Culp anticipates sequential overall sales growth and adjusted EBITDA ranging from near breakeven to slightly positive, with further sequential improvement in operating performance throughout the remainder of fiscal 2026.

Sep 11, 2025, 1:00 PM

Transcript

Culp Inc. Reports Improved Q1 Fiscal 2026 Operating Results Despite Sales Decline

CULP

Earnings

Guidance Update

Demand Weakening

Culp Inc. reported a net loss of $231,000 or $0.02 per diluted share for Q1 fiscal 2026, a significant improvement from a net loss of $7.3 million or $0.58 per diluted share in the prior year period.
Net sales for Q1 fiscal 2026 were $50.7 million, down from $56.5 million in the prior year, primarily due to continued market softness and tariff-driven impacts on residential upholstery shipments.
Gross profit improved significantly to $7.2 million or 14.3% of sales in Q1 fiscal 2026, up from $5.1 million or 9% of sales in the prior year, primarily driven by cost and efficiency benefits from the bedding segment's restructuring. The bedding segment achieved 10.5% gross margin compared to a negative 1.2% in the prior year.
The company expects sequential overall sales growth and adjusted EBITDA in a range from near breakeven to slightly positive for Q2 fiscal 2026, with continued sequential improvement in operating performance and profitability throughout the remainder of fiscal 2026.
Culp is implementing new initiatives expected to generate at least $6 million in annualized cost and efficiency enhancements, which are additive to the $10-$11 million in annualized benefits from last year's restructuring initiatives.

Sep 11, 2025, 1:00 PM

Transcript

Culp Inc. Reports Q1 2026 Results, Showing Profitability Improvement and Sequential Growth Outlook

CULP

Earnings

Guidance Update

Demand Weakening

Net sales for Q1 fiscal 2026 were $50.7 million, a decline from the prior year, primarily due to continued market softness and tariff-driven pauses in residential upholstery shipments.
The company significantly improved its profitability, with gross profit increasing to $7.2 million, or 14.3% of sales, in Q1 2026, up from $5.1 million or 9% of sales in the prior year, largely due to cost and efficiency benefits from bedding segment restructuring.
Culp reduced its net loss to $231,000, or $0.02 per diluted share, in Q1 2026, a substantial improvement compared to a net loss of $7.3 million, or $0.58 per diluted share, in the prior year period.
For Q2 fiscal 2026, Culp anticipates sequential overall sales growth and adjusted EBITDA in the range of near breakeven to slightly positive, with further sequential improvement in operating performance and profitability expected throughout the remainder of fiscal 2026, supported by ongoing integration initiatives.

Sep 11, 2025, 1:00 PM

Transcript

CULP Reports Q1 2026 Results and Details Restructuring Benefits

CULP

Earnings

Guidance Update

Demand Weakening

CULP reported $50.7 million in revenue and $7.2 million in gross profit for Q1 2026.
As of August 3, 2025, the company's total liquidity was $28.7 million, with an additional estimated $3.0 million from a Canadian real estate sale expected in Fiscal 2026, bringing the total to $31.7 million.
CULP anticipates approximately $18 million in total annualized benefits from FY25 restructuring and FY26 integration and pricing initiatives. The bedding market shows indications of demand recovery, with forecasts for 4% growth in 2026E and 8% growth in 2027E for the U.S. mattress industry.