Culp(US:CULP)2025-12-11 14:00Company Overview - Culp Inc is a major player in North America's mattress and upholstery fabrics market[6] - The company's fiscal year 2025 revenue was $213.2 million[7] - The bedding segment accounted for 53% of fiscal 2025 revenue, while the upholstery segment accounted for 47%[8] Liquidity and Financial Position - As of November 2, 2025, Culp had a total liquidity of $28.1 million, potentially increasing to $31.1 million with estimated proceeds from a Canadian real estate sale[16] - The company has U S Federal NOL carryforwards totaling approximately $88.1 million as of April 27, 2025[17] Restructuring and Cost Savings - Culp completed restructuring actions in fiscal year 2025 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 approximately $8 million in total annualized additional benefits[32] - Total cost and efficiency actions are projected to save approximately $17.5 million annually, with pricing initiatives expected to add another $2.5 million, totaling approximately $20 million in combined savings and revenue gains[33] Market Conditions and Outlook - The company anticipates a potential recovery in the bedding market, with UBS forecasting 4% growth in 2026 and 8% growth in 2027[46] - Historical data suggests that bedding industry downturns since 1980 have never exceeded 4 years, followed by periods averaging 4% growth[54, 56]