Here are a few analogies to describe Culp (CULP):

• The Mohawk Industries of mattress and upholstered furniture fabrics.
• The YKK of mattress and furniture fabrics.

• Mattress Fabrics: Culp designs and manufactures a wide range of knitted and woven fabrics specifically for use in mattresses and mattress borders.
• Upholstery Fabrics: The company produces various fabrics for residential and commercial upholstered furniture, such as sofas, chairs, and other soft furnishings.

Culp (CULP) Major Customers

Culp (CULP) primarily sells its products to other companies, operating in a B2B (business-to-business) model.

The company is a leading supplier of mattress fabrics (through its CULP HOME division) and fabrics for residential and commercial upholstered furniture (through its CULP UPHOLSTERY division). Therefore, its customers are primarily:

1. Mattress Manufacturers: Companies that produce mattresses for consumers and businesses.
2. Furniture Manufacturers: Companies that produce upholstered furniture (sofas, chairs, etc.) for residential and commercial use.

According to Culp's financial filings (e.g., their most recent 10-K reports), Culp maintains long-term relationships with a diverse customer base for both its business segments. **No single customer accounted for more than 10% of Culp's consolidated net sales in fiscal 2023, fiscal 2022, or fiscal 2021.** This indicates that Culp does not have a few "major" customers that dominate its revenue. Instead, it serves a broad range of mattress and furniture manufacturers, none of whom individually constitute a significant portion of its total sales.

Robert G. Culp IV, President and Chief Executive Officer

Robert G. Culp IV, known as Iv Culp, became the Chief Executive Officer of Culp, Inc. on January 1, 2020. He represents the third generation of his family to lead the company, which his grandfather, Robert Culp II, and father, Robert Culp III, co-founded in 1972. Culp joined the company in 1998 and has held various leadership roles, including President of Culp Home Fashions, the mattress fabrics division, since 2004. He was named Chief Operating Officer in 2018 and President in 2019. While he grew up around the family business, he initially worked in a supporting industry and pursued graduate studies before officially joining Culp, Inc.

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

Kenneth R. Bowling has served as Culp, Inc.'s Chief Financial Officer, Executive Vice President, and Treasurer since 2019. He joined the company in 1997 as the Controller for the Culp Velvets/Prints division. Prior to his current role, Bowling held positions as Vice President of Finance, Treasurer, Corporate Controller, Assistant Treasurer, and Senior Vice President and Corporate Secretary within the company.

Mary Beth Hunsberger, Chief Operating Officer

Mary Beth Hunsberger was appointed Chief Operating Officer of Culp, Inc. in April 2025. Before this, she served as President and Executive Vice President of the company's upholstery fabrics division in 2024. Her previous experience includes serving as Controller and President of North and South America at DEDON from 2016 to 2023, and as Chief Operating Officer of North and South America for Gloster Furniture in 2023. Hunsberger also spent 13 years at Tempur + Sealy International, Inc.

Thomas M. Bruno, Chief Commercial Officer

Thomas M. Bruno has been the Chief Commercial Officer of Culp, Inc. since April 2025. Previously, he held the titles of Executive Vice President of Culp Home Fashions and President of the Culp Home Fashions division in 2022. Before joining Culp, Bruno gained experience in various senior positions at Tempur + Sealy.

Franklin N. Saxon, Chairman Executive Board

Franklin N. Saxon, also known as Frank, became the Chairman of Culp, Inc.'s Executive Board in 2020. He previously served as the Chief Executive Officer from May 1, 2007, and as Vice Chairman. Saxon joined Culp, Inc. in 1983 and has been a member of the board since 1987. His extensive tenure includes roles as Chief Financial Officer from 1985 to 1998, President and Chief Operating Officer, and Executive Vice President. He is credited with providing significant financial discipline to the company during challenging periods.

The key risks to Culp (symbol: CULP) are primarily driven by challenging market conditions, ongoing restructuring efforts with associated liquidity concerns, and international tariff challenges.

1. Challenging Market Conditions and Weak Consumer Demand: Culp is significantly impacted by the unsettled home furnishings and bedding industries. The company has reported continued net losses and declining revenue, attributed to factors such as low housing activity, elevated mortgage rates, and subdued consumer confidence. This macroeconomic environment directly suppresses unit sales across the industry, particularly affecting Culp's upholstery business.
2. Restructuring Risks and Liquidity Concerns: Culp is currently undergoing a comprehensive multi-phase restructuring of its business. While this aims to improve profitability and cost structure, it carries the risk of further costs and uncertainty regarding the recovery of the bedding and upholstery markets. Although the company has adequate cash and borrowing facilities, ongoing losses and increased debt levels are a concern, requiring effective management to return to profitability.
3. Tariff Challenges and International Risks: Culp operates globally, with manufacturing and sourcing in regions including China, Turkey, and Haiti. The company faces tariff volatility, with recent increases from Turkey and Haiti requiring a lag of at least 60 days to pass on costs to customers. This exposure to international markets also brings macro and geopolitical risks that can affect demand and cost structures.

The emergence of smart textiles and e-textiles designed for integration into home furnishings and bedding presents a clear emerging threat to Culp, Inc. As technological advancements lead to increased demand for fabrics with embedded electronics for functionalities such as temperature regulation, biometric monitoring, interactive surfaces, or ambient lighting in mattresses and upholstery, traditional textile manufacturers like Culp may face challenges. Companies specializing in these advanced materials could capture significant market share in an increasingly technologically sophisticated home environment, potentially marginalizing Culp's core business of producing conventional woven and knitted fabrics.

Culp (symbol: CULP) primarily operates in the mattress fabrics and upholstery fabrics markets.

Mattress Fabrics

The global mattress fabric market was valued at approximately 5.89 billion USD in 2024 and is projected to grow to 8.58 billion USD by 2032, with a compound annual growth rate (CAGR) of 4.93% during the forecast period.

Upholstery Fabrics

The global upholstery fabric market size was estimated at approximately 45.21 billion USD in 2024. This market is projected to reach 89 billion USD by 2031, growing at a CAGR of 6.357% from 2024 to 2031.

In North America, the upholstery fabric market held a significant share of the global revenue in 2024, with a market size of approximately 18.09 billion USD. Specifically, the U.S. upholstery fabric market size was approximately 14.27 billion USD in 2024 and is projected to grow at a CAGR of 5.0% during the forecast period.

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

1. Restructuring and Efficiency Gains: Culp has implemented significant restructuring plans and an integration initiative called "Project Blaze." These efforts are focused on achieving operational efficiencies and reducing costs, particularly within the mattress fabrics business. This streamlining is anticipated to lead to improved operating performance and stronger margins, supporting overall revenue growth by enhancing competitiveness.
2. Market Share Expansion in Mattress Fabrics and Sewn Covers: The company sees increasing opportunities to gain market share, especially in mattress fabrics and sewn mattress covers. Management has expressed confidence in acquiring new business with key customers, which is expected to contribute to sequential sales growth.
3. Growth in Commercial and Hospitality Upholstery: Culp's upholstery segment is strategically concentrating on the commercial and hospitality sectors. These areas have demonstrated resilience and significant growth potential, with sales in these higher-margin markets already increasing and projected to continue expanding.
4. Product Innovation and New Product Introductions: Culp places a strong emphasis on continuous creativity and product innovation. The company aims to drive sales by replacing existing products with enhanced offerings and by consistently introducing new products, especially within its Culp Home Accessories segment, which includes eLuxury.
5. Strategic Price Adjustments: To counteract the impact of tariffs and optimize profit margins, Culp has initiated price increases across certain product lines. These strategic adjustments are expected to yield annualized benefits and contribute positively to revenue.

Capital Expenditures

• Capital expenditures for fiscal year 2025 were $2.9 million, a decrease from $3.7 million in fiscal year 2024.
• The focus of capital expenditures in fiscal year 2025 was on strategically managing capital and investing in projects that target operating efficiency and future growth, primarily within the mattress fabrics segment.
• For fiscal year 2026, capital spending is projected to generally follow fiscal 2025 levels, concentrating on maintenance, increasing efficiencies, and enhancing quality, particularly in the mattress fabrics segment.