Latest news with #CULP
Business Insider
2 hours ago
- Business
- Business Insider
Culp, Inc. enters into multi-year agreement with biggest shareholder
Culp, Inc. (CULP) announced that it has entered into a new, multi-year cooperation agreement with its largest shareholder, Seattle-based 22NW, LP. Among other voting, governance and standstill provisions, 22NW will provide its voting support to CULP at its 2025 and 2026 Annual Meetings of Shareholders pursuant to the agreement. In addition, new independent director candidates, Doug Collier and Lynn Heatherton will be nominated for election to the Company's board of directors at its 2025 and 2026 Annual Meetings of Shareholders along with Alexander B. Jones of 22NW, who joined the board in 2024 as part of an agreement between CULP and 22NW. The current size of the Company's board of directors will not be increased in connection with these nominations. Robert G. Culp, IV, President and Chief Executive Officer of CULP, commented, 'This new cooperation agreement with 22NW will provide support for CULP's management, employees and customers and, once again, demonstrates our willingness and ability to work constructively with investors to generate positive outcomes for all stakeholders.' Confident Investing Starts Here:
Business Wire
8 hours ago
- Business
- Business Wire
Culp Enters Into Multi-Year Agreement With Largest Shareholder
HIGH POINT, N.C.--(BUSINESS WIRE)--Culp, Inc. (NYSE: CULP), a leading provider of fabrics for bedding and upholstery fabrics for residential and commercial furniture, announced today that it has entered into a new, multi-year cooperation agreement with its largest shareholder, Seattle-based 22NW, LP. Among other voting, governance and standstill provisions, 22NW will provide its voting support to CULP at its 2025 and 2026 Annual Meetings of Shareholders pursuant to the agreement. In addition, new independent director candidates, Doug Collier and Lynn Heatherton will be nominated for election to the Company's board of directors at its 2025 and 2026 Annual Meetings of Shareholders along with Alexander B. Jones of 22NW, who joined the board in 2024 as part of an agreement between CULP and 22NW. The current size of the Company's board of directors will not be increased in connection with these nominations. Robert G. Culp, IV, President and Chief Executive Officer of CULP, commented, 'This new cooperation agreement with 22NW will provide support for CULP's management, employees and customers and, once again, demonstrates our willingness and ability to work constructively with investors to generate positive outcomes for all stakeholders.' Aron R. English, Portfolio Manager and Founder of 22NW, commented, 'CULP is an important investment for 22NW, and we welcome the opportunity to support the Company as it positions itself for future growth opportunities.' The complete agreement between CULP and 22NW will be filed with the SEC as an exhibit to a form 8-K. About the Company Culp, Inc. is one of the largest marketers of mattress fabrics for bedding and upholstery fabrics for residential and commercial furniture in North America. The company markets a variety of fabrics to its global customer base of leading bedding and furniture companies, including fabrics produced at Culp's manufacturing facilities and fabrics sourced through other suppliers. Culp has manufacturing and sourcing capabilities located in the United States, China, Haiti, Turkey, and Vietnam.
Yahoo
07-03-2025
- Business
- Yahoo
Culp Inc (CULP) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Net Sales: $52.3 million, down 13.5% compared with the prior year period. Operating Loss: $3.9 million, including $2.3 million in restructuring expenses. Adjusted Operating Loss: $1.6 million, improved from $2.6 million in the previous quarter. Net Loss: $4.1 million or $0.33 per diluted share, compared to $3.2 million or $0.26 per diluted share in the prior year period. Adjusted EBITDA: Near break-even at negative $123,000, improved from negative $1.3 million in the previous quarter. Mattress Fabric Segment Sales: $28.6 million, down 4.6% year-over-year. Upholstery Fabric Segment Sales: $23.6 million, down 22.3% year-over-year. Total Cash: $5.3 million with $5.4 million in outstanding debt. Free Cash Flow: Negative $10.1 million for the first nine months of the fiscal year. Capital Expenditures: $2.4 million for the first nine months, projected to be $3 to $3.5 million for the fiscal year. Liquidity: $28.5 million, including $5.3 million in cash and $23.2 million in borrowing availability. Warning! GuruFocus has detected 4 Warning Signs with CULP. Release Date: March 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Culp Inc (NYSE:CULP) achieved a 58.3% sequential reduction in operating loss in the mattress fabric segment, indicating improved operational efficiency. The company completed its restructuring plan for the mattress fabric segment, which is expected to enhance profitability and streamline operations. Culp Inc (NYSE:CULP) is gaining market share in both the mattress and hospitality contract fabric businesses, with new business opportunities and customer wins. The hospitality contract fabric business saw year-over-year and sequential sales increases, representing 40% of upholstery fabrics total sales for the quarter. Culp Inc (NYSE:CULP) has a strong and flexible global supply chain, providing agility in navigating tariff impacts and offering supply chain optionality to customers. Culp Inc (NYSE:CULP) reported a net loss of $4.1 million for the third quarter, reflecting ongoing challenges in the demand environment. Consolidated sales for the third quarter were down 13.5% compared to the prior year, due to weakness in the home furnishings and bedding industries. The company faced pressure from lower residential upholstery fabric sales, exacerbated by inventory adjustments from a large customer. Tariff and global trade uncertainties are causing delays and sales pressure, potentially impacting fourth-quarter sales. Culp Inc (NYSE:CULP) anticipates continued industry sales pressure and macroeconomic headwinds, providing limited financial guidance for the near term. Q: Can you clarify the timeline for Culp Inc's return to profitability given current demand levels? A: Robert Culp, President and CEO, confirmed that the company expects to return to profitability by early fiscal 2026, despite current demand challenges. The company is committed to achieving profitability regardless of demand levels and is making necessary adjustments to set a foundation for a sustainable profitable year. Q: How is Culp Inc gaining market share in the mattress and hospitality segments? A: Robert Culp, President and CEO, explained that the restructuring in the mattress fabrics segment has made the company more streamlined and efficient, contributing to market share gains. Thomas Bruno, EVP of Culp Home Fashions, added that they are seeing growth with existing customers and new projects, particularly with their quilting capabilities in Haiti. Mary Hunsberger, President of Culp Upholstery Fabrics, noted success in the hospitality segment with new partnerships and brand standards with major hotel conglomerates. Q: What are the details of the additional $1 million in cost savings announced? A: Robert Culp, President and CEO, stated that the additional $1 million in savings comes from personnel and professional fees. These savings will start annualizing in Q4 and continue into the next fiscal year. The company is also exploring further synergistic efficiency projects that could yield up to $2 million in additional savings. Q: How is Culp Inc handling the impact of tariffs on its production? A: Robert Culp, President and CEO, emphasized the company's focus on supply chain optionality to mitigate tariff impacts. Only about 30% of upholstery fabrics are tariff-impacted from China, and the company is relocating production to Southeast Asia. Mary Hunsberger, President of Culp Upholstery Fabrics, mentioned that price increases will be used to offset tariff costs. For mattress fabrics, the company can quickly shift production to tariff-free locations like Haiti. Q: How does Culp Inc view industry consolidation, particularly in the mattress segment? A: Thomas Bruno, EVP of Culp Home Fashions, sees industry consolidation as a net positive for Culp Inc. The company's large provider status and flexible platform are well-suited to serve larger suppliers in the mattress industry, presenting opportunities for growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
