Culp, Inc. (CULP)

Culp, Inc.'s stock has declined over the past six months, with a 25.97% decrease from November 2024 to November 2025. Key events impacting the stock include a strategic transformation and restructuring, which combined two divisions and is expected to generate $3 million in annualized savings. The company reported a net loss for Q4 Fiscal 2025 but extended its credit facility with Wells Fargo. Culp also entered into a cooperation agreement with its largest shareholder and reported a sales drop for Q1 Fiscal 2026, although it reduced its net loss due to restructuring efforts. The decline in upholstery fabric sales was exacerbated by a five-week pause in shipments from its Chinese operation due to tariff uncertainty.

While the U.S. mattress industry has historically experienced seasonal slowdowns, broader macroeconomic factors and industry-specific challenges are currently more influential for Culp, Inc. Weak demand in both upholstery and mattress fabrics has been noted, and the company's strategic restructuring efforts are aimed at adapting to these fluctuating demand scenarios and macroeconomic uncertainties.

Culp, Inc. is a leading manufacturer and marketer of fabrics for bedding and upholstery in North America, operating within the Textiles industry. Its product portfolio includes knitted and woven fabrics, as well as cut and sewn kits for mattresses, and a variety of woven and knitted fabrics for upholstery. Major clients include Tempur + Sealy International, Serta-Simmons Bedding, Corsicana, and Ashley Furniture.

Culp, Inc. has a global presence with its headquarters in High Point, North Carolina, USA. The company has manufacturing and sourcing facilities in the United States (North Carolina, Tennessee, Indiana), Canada, China, Haiti, Turkey, and Vietnam.

Culp, Inc. has demonstrated a commitment to environmental stewardship, with its mattress fabrics division recognized as an Environmental Partner by the North Carolina Department of Environmental Quality's Environmental Stewardship Initiative. The company's environmental initiatives include Zero Waste to Landfill certifications, use of hydropower and solar power, and participation in Unifi's Textile Takeback program.

Culp, Inc. is primarily owned by institutional shareholders (66.15%) and company insiders (48.93%). Aron R. English is the largest individual shareholder, while key institutional holders include 22nw LP, CIBC Bancorp USA Inc., and Gate City Capital Management LLC.