Culp(US:CULP)2025-09-11 13:00Company Overview - Culp, Inc is a major North American marketer of mattress and upholstery fabrics with global manufacturing in the US, China, Haiti, and Vietnam[6] - Culp's fiscal year 2025 revenue was $213.2 million[7] - The bedding segment accounts for 53% of Culp's fiscal 2025 revenue, while the upholstery segment accounts for 47%[8] Market Position and Strategy - Culp holds a 20-25% market share in the $500-600 million domestic mattress fabric and cover market[10] - Culp holds an 8-10% market share in the $1.5-$2.5 billion domestic upholstery fabric market[13] - Restructuring actions completed in fiscal year 2025 are projected to yield $10 to $11 million in annualized cost savings and efficiency gains[21] - Additional integration actions in fiscal year 2026 are expected to generate ~$6 million in total annualized additional benefits[32] - Pricing initiatives in fiscal year 26 are expected to generate ~$2.5 million annualized margin improvement in bedding segment[32] Liquidity and Financial Health - As of August 3, 2025, Culp's total liquidity was $28.7 million, including cash and availability from credit lines[15] - Estimated proceeds from a Canadian real estate sale will add $3 million to liquidity, bringing the total to $31.7 million[15] - Culp has U S Federal NOL carryforwards totaling ~$88.1 million as of April 27, 2025[16] Market Outlook - The mattress industry may be nearing the end of a period of low demand[35] - UBS forecasts 4% growth in mattress industry sales in 2026 and 8% growth in 2027[40]