Culp, Inc. Reports Improved Q3 Performance Amid Restructuring

Culp, Inc ( (CULP) ) has released its Q3 earnings. Here is a breakdown of the information Culp, Inc presented to its investors.

Culp, Inc. is a leading marketer of mattress and upholstery fabrics for the bedding and furniture industries, with manufacturing and sourcing operations in North America, China, Haiti, Turkey, and Vietnam. The company is known for its innovative design capabilities and flexible manufacturing platform.

Culp, Inc. reported its third-quarter fiscal 2025 results, highlighting a continued improvement in mattress fabrics operating performance and progress in restructuring initiatives. Despite a challenging industry environment, the company achieved a sequential reduction in operating losses and near break-even adjusted EBITDA.

The company’s consolidated net sales for the quarter were $52.3 million, a decrease of 6.1% from the previous quarter. The mattress fabrics segment showed a 58.3% reduction in operating loss, while the upholstery fabrics segment remained profitable despite industry pressures. Culp also entered into a conditional agreement to sell its Canadian real estate, expecting cash proceeds of $6.0 to $8.0 million.

Culp’s management remains optimistic about the future, focusing on cost optimization and strategic actions to enhance efficiency. The company anticipates further improvement in mattress fabrics profitability in the fourth quarter and aims to return to consolidated operating income in fiscal 2026.

Looking ahead, Culp is well-positioned to navigate macroeconomic challenges and industry consolidation, leveraging its strong customer relationships and agile manufacturing capabilities to drive future growth and profitability.