High Point, N.C.: Culp Inc. ended fiscal 2026 on a stronger note, reporting fourth-quarter consolidated net sales of US$51.6 million, up nearly 8% sequentially and around 6% year-on-year, driven by strong growth in its bedding fabrics business and the completion of a two-year restructuring program.
The company’s bedding division delivered the strongest performance during the quarter, with sales increasing 12.5% year-on-year to US$30.5 million, supported by market share gains and new product innovations, particularly in sewn mattress covers. Bedding gross profit also improved 38% sequentially during the quarter.
For the full fiscal year, bedding sales increased 2.4% to US$116.6 million, while gross profit rose nearly 35% to US$10.7 million, reflecting improved operational efficiency and product mix.
Chief Executive Officer Iv Culp described the fourth quarter as the beginning of a turnaround for the company.
“I believe this is the start of the turn – the springboard into a profitable year,” he said, adding that the completion of the restructuring program has created a stronger foundation for future growth.
The restructuring, completed over two fiscal years, included the closure of the company’s Canadian manufacturing facility in fiscal 2025, followed by the consolidation of U.S. operations and business segments during fiscal 2026.
Culp also highlighted continued investments in product development, innovation and supply chain optimization. The company now operates a domestic manufacturing platform supported by production facilities in Asia, Turkey and Haiti, enabling greater flexibility and improved customer service.
The company has also strengthened its pricing strategy to manage tariff and raw material cost fluctuations. Additionally, Culp recently recovered approximately US$7 million in previously paid IEEPA tariff refunds, which will be used to reduce debt. The company expects net debt to decline from approximately US$10.4 million at the end of the fourth quarter to around US$5 million by the end of the first quarter of fiscal 2027.
While the upholstery segment remained under pressure, with full-year sales declining 12.5% to US$86.9 million due to weaker housing activity and soft consumer demand, management remains optimistic about continued momentum in bedding.
For fiscal 2026, Culp’s net loss narrowed 47% to US$10.2 million, compared with US$19.1 million in the previous year. Consolidated annual revenue totaled US$203.5 million, down 4.6% from fiscal 2025.
Looking ahead, the company expects modest sequential sales growth in the first quarter of fiscal 2027 and projects breakeven to positive adjusted EBITDA, supported by improved operational efficiency and strengthening bedding demand.
