Culp, Inc. Common Stock

Culp Inc. reported first-quarter fiscal 2027 net sales of $54 million, up from $50.7 million a year earlier, driven by double-digit growth in its bedding segment. Bedding sales rose 13.2% to $31.8 million, while upholstery sales slipped to $22.2 million from $22.6 million, a result the company called generally comparable given one less selling week in the quarter. Gross profit was $15.4 million, or 28.5% of sales, including approximately $7 million in IEEPA tariff recoveries; excluding those recoveries, gross profit was $8.4 million, or 15.6% of sales, an approximately 17% increase over the prior year period. Net income was $6 million, or $0.47 per diluted share, compared with a net loss of $231,000, or negative $0.02 per diluted share, a year earlier, and adjusted EBITDA was $566,000 versus negative $938,000. The company ended the quarter with $10.2 million in cash and $13.3 million in outstanding debt, a net debt position of $3.1 million, roughly a 70% reduction from the end of fiscal 2026. Culp also announced that Chief Operating Officer Mary Beth Hunsberger will succeed Ken Bowling as Chief Financial Officer effective September 14, 2026, with Bowling staying through December to assist the transition. For the second quarter, Culp said it expects consistent sequential sales volumes with some growth over the prior year period and break-even operating income.