Financial Performance - Consolidated net sales for Q1 fiscal 2025 were $56.5 million, a 14.2% sequential increase, with upholstery fabrics sales up 19.7% and mattress fabrics sales up 9.0%[2] - The upholstery fabrics segment achieved an operating income of $1.7 million, reflecting a 28.9% year-over-year increase and a 75.6% sequential increase, with an operating margin of 6.0%[2] - The company reported a GAAP consolidated loss from operations of $(6.9) million, which included $2.7 million in restructuring expenses[2] - Mattress fabrics segment sales were $28.1 million, down 3.9% year-over-year but up 9.0% sequentially, driven by higher order levels[12] - Upholstery fabrics segment sales were $28.5 million, up 3.7% year-over-year and up 19.7% sequentially, with hospitality/contract business accounting for approximately 33% of total sales[14] - Net sales for the three months ended July 28, 2024, were $56.537 million, a decrease of 0.2% compared to $56.662 million for the same period in 2023[24] - Gross profit decreased by 28.4% to $5.076 million, representing 9.0% of net sales, down from 12.5% in the prior year[24] - Net loss for the quarter was $7.261 million, up 117.3% from a net loss of $3.342 million in the same quarter of 2023[24] - Net loss per share (basic and diluted) was $(0.58), compared to $(0.27) in the prior year, reflecting a 114.8% increase in loss per share[24] - Loss from operations was $6.851 million, a 122.3% increase from the loss of $3.082 million in the prior year[24] Restructuring and Cost Management - The company expects Q2 fiscal 2025 consolidated net sales to be flat sequentially and aims to return to near break-even adjusted EBITDA in Q2 and positive adjusted operating income in Q3[3] - The restructuring plan is expected to generate $10.0 to $11.0 million in annualized savings and operating improvements by the end of the calendar year[8] - Total restructuring costs for fiscal 2025 are projected at $5.1 million, with $3.0 million expected as cash expenditures[9] - The company is undergoing restructuring in its mattress fabric operations, which includes the discontinuation of operations in Quebec, Canada, and consolidation of facilities in Haiti[25] - Restructuring expenses increased significantly by 678.4% to $2.631 million, compared to $338,000 in the same period last year[24] - The company reported a restructuring-related charge of $116,000 for losses on the disposal of obsolete inventory during the quarter[36] - The company incurred restructuring expenses of $615,000 for the quarter ended July 28, 2024, compared to $711,000 in the previous quarter[39] Cash and Liquidity - Cash position remained stable at $13.5 million, with a net cash position of $9.5 million after only a $560,000 decrease since the end of fiscal 2024[2] - As of July 28, 2024, the company had approximately $32.7 million in liquidity, consisting of $13.5 million in cash and $19.2 million in borrowing availability[16] - The company reported a net cash position of $9,455 as of July 28, 2024, down from $16,812 on July 30, 2023[29] - Cash and cash equivalents decreased by $3,340, or 19.9%, from $16,812 on July 30, 2023, to $13,472 on July 28, 2024[28] Assets and Liabilities - Total current assets decreased by $5,386, or 6.1%, from $88,064 on July 30, 2023, to $82,678 on July 28, 2024[28] - Total liabilities increased by $3,230, or 5.7%, from $56,785 on July 30, 2023, to $60,015 on July 28, 2024[28] - Total assets decreased by $13,763, or 9.6%, from $142,902 on July 30, 2023, to $129,139 on July 28, 2024[28] - Total assets as of July 28, 2024, were $129,139,000, with total liabilities of $60,015,000[42] Economic and Market Factors - Economic factors such as interest rates, consumer confidence, and inflation are expected to impact future performance[22] - The company faces risks related to foreign operations, including currency fluctuations and political instability, which could affect financial results[22] Segment Performance - Mattress Fabrics segment reported a gross loss of $326,000, a decline of 116.3% from a gross profit of $1,994,000 in the prior year[32] - Total segment gross profit decreased by 28.5% to $5,192,000 from $7,264,000 year-over-year[32] - The mattress fabrics segment's return on capital employed was -14.6%, compared to -25.4% in the previous year[33] - The Upholstery Fabrics segment achieved an adjusted operating income of $6,170,000, with a return on average capital employed of 70.5%[41] - The Mattress Fabrics segment experienced an operating loss of $17,159,000, resulting in a return on average capital employed of (25.4)%[45] - The Upholstery Fabrics segment generated an operating income of $2,781,000, achieving a return on average capital employed of 18.2%[45]

Financial Performance - In fiscal 2024, total company sales were $225.3 million, a decrease of 4.3% from $234.9 million in fiscal 2023[25] - The mattress fabrics segment generated $116.4 million in sales, accounting for 52% of total company sales, compared to $111.0 million (47%) in fiscal 2023[25] - The upholstery fabrics segment saw sales decline to $108.9 million (48% of total sales) from $123.9 million (53%) in fiscal 2023[25] - Total net sales for fiscal 2024 were $225.3 million, a decrease from $234.9 million in fiscal 2023[111] - Net sales in the United States for fiscal 2024 were $153.6 million, representing 68.2% of total net sales[111] - International sales accounted for 31.8% of total net sales in fiscal 2024, with the Far East and Asia contributing $36.3 million[111] Restructuring and Operational Changes - Culp announced a restructuring plan in May 2024, expecting to incur approximately $8.0 million in restructuring costs, with $2.5 million anticipated in the first half of fiscal 2025[23] - The restructuring plan includes consolidating operations in Quebec, Canada, and relocating some knitting operations to Stokesdale, North Carolina[19] - The company is consolidating its North American mattress fabrics operations, including the closure of a manufacturing plant in Quebec, Canada, to improve efficiency and reduce costs[29] - The company plans to complete the Fiscal 2025 restructuring, which includes the closure of the St. Jerome plant and reducing Haiti production operations to a single facility[61] - The restructuring includes the phased wind-down of the Quebec manufacturing plant and consolidation of operations in North Carolina and Haiti[19] Supply Chain and Sourcing - The company emphasizes the importance of diversifying its supply chain to mitigate risks associated with global operations[12] - The company is diversifying its sourcing strategies to mitigate risks associated with global trade tensions and tariffs, particularly concerning imports from China[51] - The company has established strategic supplier relationships in Vietnam and Turkey to diversify its supply chain and enhance sourcing capabilities[65] - The company aims to enhance its supply chain by diversifying partnerships and optimizing operations to improve efficiency and reduce costs[30] Employee and Workforce Management - The company employed 1,000 people at the end of fiscal 2024, a decrease of 333 employees compared to the previous year, with significant reductions in both mattress and upholstery segments[93] - The company plans to reduce the number of employees in its mattress fabrics segment by approximately 240, representing close to 35% of the segment's total workforce at the end of fiscal 2024[97] - The company-wide annual employee turnover rate was approximately 43.5% during the past fiscal year, compared to approximately 42% in the prior year[96] - The company has adopted a mission statement focused on providing outstanding employee support in a safe and collaborative environment[98] - The company maintains comprehensive safety monitoring and training programs to ensure employee health and safety[107] Market Trends and Competition - The bedding industry experienced significant unit contraction during fiscal 2023 and fiscal 2024, primarily due to inflationary pressures and a shift in consumer spending[41] - The upholstery fabrics segment is impacted by economic trends affecting consumer spending and housing market fluctuations[45] - The company faces high competition in both mattress and upholstery fabrics markets, primarily based on price, design, and quality[84] - The upholstery fabrics segment has become more vulnerable to price increases and production interruptions due to increased reliance on outside suppliers[80] Product and Innovation - Culp's mattress fabrics segment includes woven jacquard and knitted fabrics, with a focus on product innovation and customer service[16][17] - The company has invested in knitting software and a chemical dosing system to enhance finishing capabilities and monitor machine efficiency, leading to immediate cost-saving benefits[31] - The company launched a new innovation campus in High Point, North Carolina, to enhance design and innovation collaboration across its mattress and upholstery segments[68] - The company is focusing on creative design and product innovation as key strategies for long-term success in the mattress fabrics business[32] Pricing and Cost Structure - Raw materials account for approximately 60%-70% of production costs in both mattress and upholstery fabrics segments, with costs sensitive to oil prices[77][79] - The upholstery fabrics segment's manufacturing costs are also approximately 60%-70% dependent on raw materials, similar to the mattress fabrics segment[79] - The company emphasizes fabrics with broad appeal, priced between $1.60 to over $10.00 per yard for mattress fabrics and $2.50 to $16.00 per yard for upholstery fabrics[53][54] Sales Dynamics - The mattress fabrics business experiences slight seasonality, with sales peaking in early spring and late summer[82] - Increased demand for roll-packed/compressed mattresses is driving growth, with knitted fabrics gaining popularity across various price points[43] - The largest customer in the mattress fabrics segment, Serta Simmons Holdings, accounted for approximately 13% of the company's consolidated sales in fiscal 2024[108] - The largest customer in the upholstery fabrics segment, La-Z-Boy Incorporated, accounted for approximately 12% of the company's consolidated sales in fiscal 2024[109] - The backlog for the upholstery fabric segment with confirmed shipping dates prior to June 3, 2024, was $11.7 million, compared to $10.6 million as of the end of fiscal 2023[114]

Culp, Inc. (NYSE:CULP) Q4 2024 Earnings Conference Call June 28, 2024 11:00 AM ET Company Participants Dru Anderson - IR Robert Culp - President and CEO Ken Bowling - CFO Tommy Bruno - President of Mattress Fabrics Boyd Chumbley - President, Culp Upholstery Fabric Division Conference Call Participants Brian Gordon - Water Tower Research John Deysher - Pinnacle Operator Good morning, and welcome to the Culp, Incorporated, Fourth Quarter Fiscal 2024 Earnings Conference Call. All participants will be in listen ...

Inside the Numbers In the fiscal fourth quarter, the company incurred an adjusted loss of 39 cents per share, narrower than the Zacks Consensus Estimate of a loss of 44 cents per share. It had reported an adjusted loss of 38 cents per share in the prior-year quarter. Net sales of $49.5 million marginally missed the consensus estimate of $49.8 million by 0.5% and declined 19.4% from the year-ago quarter's figure. Culp, Inc. Price, Consensus and EPS Surprise Culp, Inc. price-consensus-eps-surprise-chart | Cul ...

Culp, Inc. (CULP) came out with a quarterly loss of $0.39 per share versus the Zacks Consensus Estimate of a loss of $0.44. This compares to loss of $0.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 11.36%. A quarter ago, it was expected that this company would post a loss of $0.16 per share when it actually produced a loss of $0.26, delivering a surprise of -62.50%. Over the last four quarters, the company has surpassed ...

HIGH POINT, N.C. (June 27, 2024) ─ Culp, Inc. (NYSE: CULP) (together with its consolidated subsidiaries, "CULP") today reported financial and operating results for the fourth quarter and fiscal year ended April 28, 2024. Fiscal 2024 Fourth Quarter Financial Summary Fiscal 2024 Full Year Financial Summary Restructuring Plan Update The restructuring plan announced on May 1, 2024, primarily focused on the company's mattress fabrics segment, is progressing as planned. Exhibit 99.1 CULP ANNOUNCES RESULTS FOR FOU ...

Culp, Inc. (CULP) is scheduled to report fourth-quarter fiscal 2024 results on Jun 27, after market close. CULP's earnings topped the consensus mark in three of the trailing four quarters and missed once, with an average being negative 2.6%. For the quarter to be reported, the Zacks Consensus Estimate for loss per share widened to 44 cents from 40 cents in the past 60 days. The estimated figure indicates a deterioration of 15.8% from the year-ago quarter's level of 38 cents. Key Factors to Note Also, the in ...

North Carolina 1-12597 56-1001967 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) FORM 8-K Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 29, 2024 1823 Eastchester Drive High Point, North Carolina 27265 (Address of Principal Executive Offices) (Zip Code) (Former Name or Former Address, if Changed Since Last Report) ☐ Written communications pursuant to Rule 425 under the S ...

Culp, Inc. (NYSE:CULP) Q3 2024 Earnings Conference Call March 7, 2024 11:00 AM ET Company Participants Dru Anderson - IR Iv Culp - President and CEO Ken Bowling - CFO Tommy Bruno - President of Mattress Fabrics Conference Call Participants Budd Bugatch - Water Tower Research Anthony Lebiedzinski - Sidoti & Company Operator Good day and welcome to the Culp Inc. Third Quarter Fiscal 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentatio ...

Culp, Inc. (CULP) reported mixed third-quarter fiscal 2024 (ended Jan 28) results, with earnings missing the Zacks Consensus Estimate and net sales surpassing the same. On a year-over-year basis, net sales increased and the adjusted loss improved.Despite the ongoing demand softness, the company benefited from strong contributions from both of its core business segments. Improved pricing and margin also contributed to the positive.CULP plans to enhance its mattress fabrics segment to boost sales and improve ...