Analogies for Culp (CULP):

• They're like the **Intel** for mattress and furniture fabrics, supplying the specialized textile components that go into these products.
• Think of them as the **YKK** for the bedding and furniture industries, providing the essential fabrics and covers.

• Mattress Fabrics: Manufactures and sells a range of woven jacquard, knitted, and converted fabrics for use in mattresses, box springs, foundations, and top of bed components.
• Mattress Sewn Covers & Kits: Provides pre-sewn covers and cut-and-sewn fabric kits for mattresses, foundations, and other bedding products.
• Upholstery Fabrics: Offers a diverse collection of fabrics, including jacquard woven, velvets, micro denier suedes, and knitted materials, for residential and commercial upholstered furniture, office seating, and window treatments.
• Installation Services: Provides installation services, primarily related to their upholstery or window treatment products.

Culp, Inc. (CULP) sells primarily to other companies.

Culp does not publicly disclose the specific names of its major customers in its regulatory filings or investor communications. However, based on the company's description and business operations, its major customers are manufacturers within the following categories:

• Mattress and Bedding Product Manufacturers: Companies that produce a range of bedding products, including mattresses, box springs, foundations, and other top-of-bed components.
• Upholstered Furniture Manufacturers: Companies that produce residential and commercial upholstered furniture, such as sofas, recliners, chairs, loveseats, sectionals, sofa-beds, and office seating.

Robert G. Culp IV, President and Chief Executive Officer

Robert G. "Iv" Culp IV assumed the role of President and Chief Executive Officer of Culp, Inc. on January 1, 2020. He is the third generation of his family to lead the company, which was co-founded by his grandfather Robert Culp II and father Robert Culp III in 1972. Iv Culp joined Culp, Inc. in 1998 and has held various positions, including President of Culp Home Fashions (the mattress fabrics division) since 2004, Chief Operating Officer in 2018, and President in 2019.

Kenneth R. Bowling, Executive Vice President, Chief Financial Officer and Treasurer

Kenneth R. Bowling has served as Executive Vice President, Chief Financial Officer, and Treasurer of Culp, Inc. since May 1, 2007. He joined the company in 1997 as controller for the former Culp Velvets/Prints division, later becoming corporate controller in 2001 and assistant treasurer in 2002. Prior to joining Culp, he was a controller for a division of Hamilton Beach/Proctor Silex. Mr. Bowling plans to retire at the end of calendar year 2026 after approximately 30 years with the company.

Mary Beth Hunsberger, Chief Operating Officer

Mary Beth Hunsberger serves as the Chief Operating Officer of Culp, Inc. She was previously the President of Culp Upholstery Fabrics.

Tommy Bruno, Chief Commercial Officer

Tommy Bruno holds the position of Chief Commercial Officer at Culp, Inc.

Teresa Huffman, Senior Vice President, Human Resources

Teresa Huffman is the Senior Vice President of Human Resources for Culp, Inc.

The key risks to Culp, Inc.'s business are primarily driven by external market forces and operational dependencies:

1. Macroeconomic and Industry Uncertainty / Weak Consumer Demand: Culp's financial performance is highly susceptible to the broader economic environment and consumer spending habits. The company has experienced a prolonged period of low demand within the home furnishings industry, which significantly pressures its sales and earnings. Demand for Culp's products is directly tied to consumer demand for furniture and bedding, which is subject to cyclical variations in the general economy, including factors like consumer confidence, disposable income, housing starts, and existing home sales. Adverse macroeconomic conditions, such as rising unemployment and high inflation, can reduce purchasing power and lead to cautious consumer behavior, directly impacting Culp's sales.
2. Tariffs, Trade Uncertainty, and Supply Chain Risks: Culp faces significant exposure to ongoing tariff and trade uncertainties, which can negatively affect its financial results due to a substantial portion of its operations being located outside the United States. The company's reliance on a global supply chain, including strategic sourcing partners, makes it sensitive to changes in trade policies, U.S. trade enforcement priorities, and fluctuations in currency values. Economic or political instability in international regions could also disrupt operations or the sourcing of goods.
3. Raw Material Cost Fluctuations and Intense Competition: The profitability of Culp is strongly dependent on the availability and cost of raw materials, such as fibers and chemicals, and increases in freight and labor costs. Changes in commodity prices can directly impact the company's operating costs and decrease profitability. Additionally, Culp operates within a highly competitive textile industry, facing numerous domestic and international players. This intense competition can affect the company's pricing power and market position, requiring continuous product differentiation.

Upholstery Fabrics

• The global upholstery fabric market was valued at approximately USD 46.2 billion in 2023 and is projected to reach USD 65.75 billion by 2032, expanding at a compound annual growth rate (CAGR) of 4% from 2024–2032.
• In 2024, the global upholstery fabric market size was estimated at USD 45.21 billion.
• The North American upholstery fabric market held a major share of more than 40% of the global revenue, with a market size of USD 18.08 billion in 2024.
• The global furniture upholstery fabric market was valued at USD 6.12 billion in 2025 and is projected to grow to USD 9.01 billion by 2032, at a CAGR of 5.67%.

Mattress Fabrics

• The global mattress fabric market size was valued at USD 6.12 billion in 2025 and is projected to grow from USD 6.38 billion in 2026 to USD 9.66 billion by 2034, exhibiting a CAGR of 5.32%.
• The U.S. mattress fabric market is expected to reach USD 1.55 billion by 2026.
• The global mattress ticking fabric market size was valued at USD 51.02 billion in 2024 and is expected to reach USD 101.66 billion by 2032, at a CAGR of 9.00% during the forecast period.
• North America dominated the mattress ticking fabric market with a revenue share of 37.4% in 2024. The U.S. mattress ticking fabric market captured the largest revenue share of 66% within North America in 2024.
• The global bedding fabric market is projected at USD 16.83 billion in 2025 and is expected to reach USD 33.41 billion by 2035, growing at a CAGR of 6.2% from 2026 to 2035. North America holds approximately 20% of this market share.

Culp, Inc. (CULP) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Market Share Gains and Product Innovation in Mattress Fabrics: Culp has demonstrated a focus on its mattress fabrics segment, with reported sales increases and strategic capital investments in this area. The company has been gaining market share despite industry downturns, driven by a transformation within its mattress fabrics business and securing new opportunities in both fabrics and sewn covers due to robust product development and a strategic supply chain. There is also a gradual shift in the product mix towards high-end fabrics and covers, contributing to a rise in Average Selling Price (ASP).
2. Growth in Higher-Margin Product Categories: The company has highlighted growth in its sewn mattress cover and upholstery kit product categories, identifying them as key growth areas that carry higher sales dollars and solid margins. This strategic shift towards higher-value offerings is anticipated to contribute positively to revenue.
3. Strategic Pricing Initiatives: Culp is implementing pricing initiatives to counterbalance tariff pressures and enhance profitability. These actions are expected to improve gross profit and, in conjunction with cost savings, contribute to a more favorable revenue trajectory.
4. Benefits from Restructuring and Efficiency Initiatives: Culp has undertaken comprehensive restructuring and integration initiatives, including "Project Blaze," aimed at generating significant annualized cost savings and efficiency enhancements (projected over $20 million by fiscal year 2027). These cost reductions and operational improvements are expected to drive better gross profit and lower selling, general, and administrative expenses (SG&A), positioning the company to scale quickly and profitably as market demand stabilizes and improves.
5. Expansion of Global Manufacturing and Supply Chain: Culp has made significant progress in expanding its global platform, particularly in regions outside China, such as Vietnam. This geographic diversification enhances the company's competitive position and provides a more flexible and balanced global supply chain, which can open new markets and customer bases, thus supporting revenue growth.