CULP (CULP) Company Report

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.

Sep 11, 2025, 1:00 PM

Presentation

CULP Announces Fourth Quarter and Full Year Fiscal 2025 Results

CULP

Earnings

Guidance Update

Debt Issuance

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.

Jun 25, 2025, 12:00 AM

8-K

Culp amends ABL Facility and extends maturity to 2028

CULP

Debt Issuance

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.

Jun 16, 2025, 12:00 AM

8-K

CULP Enters Multi‐Year Shareholder Agreement

CULP

Board Change

Proxy Vote Outcomes

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.

Jun 10, 2025, 12:00 AM

8-K

CULP Inc Announces Strategic Transformation of Operating Model

CULP

Management Change

Layoffs

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 ( , ).

Apr 24, 2025, 12:00 AM

8-K

CULP Inc Announces Q3 2025 Results

CULP

Earnings

Demand Weakening

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.

Mar 5, 2025, 12:00 AM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for CULP.

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