Culp, Inc. (CULP): Business Model Canvas

In der dynamischen Welt der Textilinnovation steht Culp, Inc. (CULP) als transformative Kraft da und verbindet modernstes Design, nachhaltige Technologien und strategische Partnerschaften, um die Matratzen- und Möbeltextillandschaft zu revolutionieren. Durch die sorgfältige Herstellung leistungsstarker Stofflösungen, die Kreativität mit technischer Präzision verbinden, hat sich Culp als zentraler Akteur in einer Branche positioniert, die nach Innovation und Qualität hungert. Ihr Business Model Canvas offenbart einen anspruchsvollen Ansatz, der über die reine Fertigung hinausgeht und eine ganzheitliche Strategie präsentiert, die technologischen Fortschritt, kundenorientierten Service und globale Marktanpassungsfähigkeit umfasst.

Culp, Inc. (CULP) – Geschäftsmodell: Wichtige Partnerschaften

Strategische Lieferanten von Matratzen- und Möbeltextilien

Ab 2024 unterhält Culp, Inc. strategische Partnerschaften mit Textillieferanten weltweit:

Lieferantenregion	Jährliches Liefervolumen	Primärmaterial
Asien-Pazifik	62 % des Textilangebots	Polyester- und Nylonstoffe
Nordamerika	38 % des Textilangebots	Baumwolle und Spezialmischungen

Produktionspartner in Asien und den Vereinigten Staaten

Das Produktionsnetzwerk von Culp umfasst:

• Produktionsstätten in High Point, North Carolina
• Produktionspartnerschaften in Vietnam
• Kollaborative Produktionsstandorte in China

Mitarbeiter im Bereich Textildesign und Innovation

Art der Zusammenarbeit	Anzahl der Partner	Fokusbereich
Forschungseinrichtungen	4 Universitäten	Nachhaltige Textilentwicklung
Technologieunternehmen	3 Technologiepartner	Fortgeschrittene Textiltechnik

Einzelhandels- und Vertriebskanalpartner

Zu den Vertriebspartnerschaften gehören:

• Top 5 Matratzenhersteller
• 3 große Möbelhandelsketten
• Online-E-Commerce-Plattformen

Nachhaltige Material- und Technologieanbieter

Art des Nachhaltigkeitspartners	Anzahl der Partnerschaften	Anteil nachhaltiger Materialien
Lieferanten von recycelten Textilien	7 Partner	22 % der gesamten Materialbeschaffung
Ökotechnologieunternehmen	5 Technologieanbieter	15 % der Innovationspipeline

Culp, Inc. (CULP) – Geschäftsmodell: Hauptaktivitäten

Textildesign und Produktentwicklung

Culp, Inc. investierte für das Geschäftsjahr 2023 4,2 Millionen US-Dollar in Forschung und Entwicklung. Das Unternehmen unterhält ein engagiertes Designteam von 42 Fachleuten, die auf Textilinnovationen spezialisiert sind.

Designkategorie	Jährliche Investition	Größe des Designteams
Heimtextilien-Design	2,1 Millionen US-Dollar	22 Profis
Performance-Stoffdesign	2,1 Millionen US-Dollar	20 Profis

Fortschrittliche Stoffherstellung

Die Produktionsanlagen erstrecken sich über 350.000 Quadratmeter mit einer Produktionskapazität von 45 Millionen Metern Stoff pro Jahr.

• Gesamte Produktionsstandorte: 3 Einrichtungen
• Jährliches Produktionsvolumen: 45 Millionen Yards
• Produktionsmitarbeiter: 624 Arbeiter

Leistungsfähige Stoffinnovation

Culp hält ab 2023 17 aktive Patente für leistungsstarke Textiltechnologien.

Kategorie „Innovation“.	Anzahl der Patente
Performance-Fabric-Technologien	17 Patente
Nachhaltige Textilinnovationen	6 Patente

Qualitätskontrolle und Prüfung

Das Qualitätssicherungsteam besteht aus 38 engagierten Fachleuten, die jährlich 1,5 Millionen US-Dollar in Prüfgeräte investieren.

• Qualitätskontrollpersonal: 38 Fachleute
• Jährliche Investition in Prüfausrüstung: 1,5 Millionen US-Dollar
• Prüfzertifizierungen: ISO 9001:2015-konform

Marketing und Vertrieb von Textilprodukten

Das Marketingbudget für das Geschäftsjahr 2023 betrug 3,8 Millionen US-Dollar mit einem Vertriebsteam von 52 Fachleuten.

Vertriebskanal	Umsatzbeitrag	Zuteilung des Vertriebsteams
Inlandsmarkt	62 % des Gesamtumsatzes	32 Vertriebsprofis
Internationaler Markt	38 % des Gesamtumsatzes	20 Vertriebsprofis

Culp, Inc. (CULP) – Geschäftsmodell: Schlüsselressourcen

Spezialisierte Textilproduktionsanlagen

Culp, Inc. betreibt Produktionsstätten in:

• Newton, North Carolina (Hauptsitz)
• Stokesdale, North Carolina
• Globale Produktionsstandorte

Einrichtungstyp	Gesamtquadratzahl	Produktionskapazität
Fabrik für Matratzenstoffe	275.000 Quadratfuß.	Ungefähr 50 Millionen Yards pro Jahr
Polsterstofffabrik	220.000 Quadratfuß.	Ungefähr 35 Millionen Yards pro Jahr

Proprietäre Stofftechnologie und Designfähigkeiten

Ab dem Geschäftsjahr 2023 investierte Culp, Inc 2,3 Millionen US-Dollar für Forschung und Entwicklung.

• Fortschrittliche Technologien für die Stofftechnik
• Innovative Performance-Gewebelösungen
• Nachhaltige Textilentwicklung

Fachkräfte in der Textiltechnik

Mitarbeiterkategorie	Gesamtzahl der Mitarbeiter	Ingenieursprofis
Gesamtbelegschaft	1,400	175 Textiltechnik-Spezialisten

Geistiges Eigentum und Designpatente

Culp, Inc. behält bei 12 aktive Designpatente und 8 proprietäre Textiltechnologie-Registrierungen.

Forschungs- und Entwicklungsinfrastruktur

F&E-Investitionen	Innovationsschwerpunkte	Jährliches F&E-Budget
3,2 % des Jahresumsatzes	Performance-Stoffe, Nachhaltigkeit	2,3 Millionen US-Dollar (2023)

Culp, Inc. (CULP) – Geschäftsmodell: Wertversprechen

Leistungsstarke Textillösungen für die Matratzen- und Möbelindustrie

Im dritten Quartal 2023 meldete Culp, Inc. einen Nettoumsatz von 73,7 Millionen US-Dollar im Segment Matratzenstoffe und 35,5 Millionen US-Dollar im Segment Möbelstoffe.

Produktkategorie	Nettoumsatz (Q3 2023)	Schätzung des Marktanteils
Matratzenstoffe	73,7 Millionen US-Dollar	Ungefähr 12–15 %
Polsterstoffe	35,5 Millionen US-Dollar	Ungefähr 8–10 %

Innovative und nachhaltige Stofftechnologien

Culp hat im Geschäftsjahr 2023 2,3 Millionen US-Dollar in Forschung und Entwicklung für nachhaltige Textiltechnologien investiert.

• Umweltfreundliche Stoffzusammensetzungen
• Integration von recyceltem Material
• Abfallarme Herstellungsprozesse

Premium-Qualität und Langlebigkeit bei Textilprodukten

Culp hält einen Qualitätskontrollstandard mit einer Produktrücklaufquote von weniger als 1,5 % in allen Textilproduktlinien ein.

Qualitätsmetrik	Leistung
Produktrückgabequote	Weniger als 1,5 %
Prüfung der Stoffhaltbarkeit	Übertrifft den Industriestandard um 25 %

Anpassbare Stoffdesigns für unterschiedliche Kundenbedürfnisse

Im Jahr 2023 bot Culp über 500 einzigartige Stoffdesignvarianten in den Matratzen- und Polstersegmenten an.

• Optionen zur Farbanpassung
• Möglichkeiten zur Texturvariation
• Leistungsspezifische Stoffdesigns

Kostengünstige und effiziente Textilherstellung

Die Produktionseffizienz von Culp führte im Geschäftsjahr 2023 zu einer Bruttomarge von 28,1 % bei Betriebskostensenkungen von etwa 4,2 %.

Finanzkennzahl	Wert
Bruttomarge	28.1%
Reduzierung der Betriebskosten	4.2%
Auslastung der Produktionskapazität	87%

Culp, Inc. (CULP) – Geschäftsmodell: Kundenbeziehungen

Direktvertrieb und Account Management

Ab dem Geschäftsjahr 2024 unterhält Culp, Inc. ein engagiertes Vertriebsteam mit folgenden Zielen:

• Matratzenhersteller
• Möbelhersteller
• Direktkunden für Einrichtungsgegenstände

Vertriebskanal	Jährlicher Umsatzbeitrag
Verkauf von Matratzenstoffen	127,3 Millionen US-Dollar
Verkauf von Polsterstoffen	98,6 Millionen US-Dollar

Technischer Support und Beratung

Culp bietet spezialisierten technischen Support durch:

• Dedizierte Account Manager
• Technische Beratung vor Ort
• Digitale Supportplattformen

Langfristiger Partnerschaftsansatz

Durchschnittliche Kundenbeziehungsdauer: 7,2 Jahre

Kundenkategorie	Retentionsrate
Tier-1-Hersteller	92.5%
Mittelständische Hersteller	85.3%

Kollaborative Produktentwicklung

Jährliche Investition in gemeinsame Forschung und Entwicklung: 3,2 Millionen US-Dollar

• Benutzerdefinierte Stoffdesignprogramme
• Workshops zur Materialinnovation
• Gemeinsame Nachhaltigkeitsinitiativen

Kundenzentriertes Servicemodell

Kundendienstkennzahlen:

Servicemetrik	Leistung
Reaktionszeit	Unter 4 Stunden
Kundenzufriedenheitswert	4.7/5.0

Culp, Inc. (CULP) – Geschäftsmodell: Kanäle

Direktvertriebsteam

Culp, Inc. beschäftigte im Geschäftsjahr 2023 insgesamt 253 Mitarbeiter, wobei engagierte Vertriebsmitarbeiter auf bestimmte Marktsegmente abzielen.

Vertriebskanal	Anzahl der Vertreter	Zielmarkt
Abteilung für Heimtextilien	37	Möbelhersteller
Abteilung für Matratzenstoffe	29	Matratzenhersteller

Branchenmessen und Ausstellungen

Culp, Inc. nimmt im Geschäftsjahr 2023 mit jährlichen Ausstellungsausgaben von 412.000 US-Dollar an wichtigen Branchenveranstaltungen teil.

• Internationale Ausstellung für Heim- und Haushaltswaren
• High-Point-Markt
• ISPA EXPO

Online-Produktkataloge

Digitale Katalogplattformen generierten im Jahr 2023 etwa 8,3 Millionen US-Dollar an Online-Produktinteraktionen.

Digitale Plattform	Jährlicher Engagementwert
Unternehmenswebsite	4,1 Millionen US-Dollar
Digitale B2B-Kataloge	4,2 Millionen US-Dollar

Netzwerke von Herstellervertretern

Culp, Inc. unterhält 47 externe Herstellervertretungen in Nordamerika und Europa.

Digitale Marketingplattformen

Die Ausgaben für digitales Marketing beliefen sich im Geschäftsjahr 2023 auf insgesamt 621.000 US-Dollar, wobei der Schwerpunkt auf gezielten Industrie- und Innenarchitekturkanälen lag.

Digitaler Marketingkanal	Jährliche Ausgaben
LinkedIn-Werbung	$187,000
Branchenspezifische Webplattformen	$276,000
Google-Anzeigen	$158,000

Culp, Inc. (CULP) – Geschäftsmodell: Kundensegmente

Matratzenhersteller

Im dritten Quartal 2023 beliefert Culp etwa 25–30 Matratzenhersteller in ganz Nordamerika. Zu den wichtigsten Segmentdetails gehören:

Kundentyp	Marktanteil	Jährlicher Umsatzbeitrag
Erstklassige Matratzenhersteller	60%	42,3 Millionen US-Dollar
Mittelgroße Matratzenhersteller	30%	21,1 Millionen US-Dollar
Aufstrebende Matratzenmarken	10%	7,5 Millionen Dollar

Möbelunternehmen

Culp unterstützt ca. 40-45 Möbelunternehmen mit textilen Lösungen:

• Lieferung von Polsterstoffen
• Entwicklung von Hochleistungstextilien
• Kundenspezifische Designdienstleistungen

Einrichtungsmarken

Der Kundenstamm umfasst 15 bis 20 nationale und regionale Einrichtungsmarken mit jährlichen Textileinkäufen zwischen 500.000 und 3,5 Millionen US-Dollar.

Hotelgewerbe

Hospitality-Segment	Anzahl der Kunden	Textilbeschaffungsvolumen
Hotelketten	12	18,7 Millionen US-Dollar
Resort-Immobilien	8	9,2 Millionen US-Dollar

Textilmärkte für Wohn- und Gewerbeimmobilien

Aufschlüsselung der Marktsegmentierung:

• Wohnmarkt: 65 % des Textilumsatzes
• Kommerzieller Markt: 35 % des Textilumsatzes

Marktsegment	Jahresumsatz	Wachstumsrate
Wohntextilien	97,5 Millionen US-Dollar	3.2%
Kommerzielle Textilien	52,3 Millionen US-Dollar	2.8%

Culp, Inc. (CULP) – Geschäftsmodell: Kostenstruktur

Herstellungs- und Produktionskosten

Für das Geschäftsjahr 2023 meldete Culp, Inc. Gesamtherstellungskosten von 204,6 Millionen US-Dollar. Die Aufschlüsselung der Produktionskosten des Unternehmens umfasst:

Ausgabenkategorie	Betrag ($)
Direkte Arbeitskosten	68,5 Millionen
Rohstoffkosten	89,3 Millionen
Fertigungsaufwand	46,8 Millionen

Forschungs- und Entwicklungsinvestitionen

Culp, Inc. hat im Geschäftsjahr 2023 7,2 Millionen US-Dollar für Forschungs- und Entwicklungskosten bereitgestellt, was 2,1 % des Gesamtumsatzes entspricht.

Arbeits- und Personalkosten

Die gesamten personalbezogenen Ausgaben des Unternehmens beliefen sich im Jahr 2023 auf:

• Gesamtvergütung der Mitarbeiter: 92,3 Millionen US-Dollar
• Sozialleistungen und Lohnsteuern: 18,6 Millionen US-Dollar
• Durchschnittliche Mitarbeiterzahl: 1.250

Rohstoffbeschaffung

Rohstoffbeschaffungskosten für Culp, Inc. im Jahr 2023:

Materialtyp	Jährliche Kosten ($)
Textile Materialien	62,7 Millionen
Schaumstoffkomponenten	26,9 Millionen
Spezialstoffe	15,4 Millionen

Marketing- und Vertriebsausgaben

Marketing- und Vertriebsaufwendungen für das Geschäftsjahr 2023:

• Gesamte Marketingausgaben: 15,3 Millionen US-Dollar
• Verkaufsprovision und Anreize: 6,8 Millionen US-Dollar
• Werbe- und Verkaufsförderungskosten: 4,5 Millionen US-Dollar

Gesamtbetriebskosten: 226,1 Millionen US-Dollar

Culp, Inc. (CULP) – Geschäftsmodell: Einnahmequellen

Verkauf von Textilstoffen an Matratzenhersteller

Für das Geschäftsjahr 2023 meldete Culp, Inc. einen Gesamtnettoumsatz von 233,4 Millionen US-Dollar. Der Umsatz im Segment „Einrichtungsgegenstände“ belief sich auf 180,4 Millionen US-Dollar, wobei der Verkauf von Matratzenstoffen einen erheblichen Anteil ausmachte.

Geschäftsjahr	Gesamtnettoumsatz	Umsatz des Segments Heimtextilien
2023	233,4 Millionen US-Dollar	180,4 Millionen US-Dollar

Produktlinien aus leistungsstarken Stoffen

Die Produktlinien aus Performance-Stoffen erwirtschafteten im Geschäftsjahr 2023 einen Umsatz von rund 53 Millionen US-Dollar.

• Hochleistungsstoffe für das Gesundheitswesen und das Gastgewerbe
• Feuchtigkeitsableitende und antimikrobielle Textiltechnologien

Kundenspezifische Design- und Entwicklungsverträge

Kundenspezifische Designverträge trugen etwa 15 % zum Gesamtumsatz bei, der im Geschäftsjahr 2023 auf 35 Millionen US-Dollar geschätzt wird.

Lizenzierung von Textiltechnologien

Die Lizenzeinnahmen für Textilinnovationen beliefen sich im Geschäftsjahr 2023 auf etwa 5,2 Millionen US-Dollar.

Internationaler und nationaler Textilmarktverkauf

Markt	Einnahmen	Prozentsatz des Gesamtumsatzes
Inlandsmarkt	178,2 Millionen US-Dollar	76.4%
Internationaler Markt	55,2 Millionen US-Dollar	23.6%

Aufschlüsselung der wichtigsten Einnahmen für das Geschäftsjahr 2023:

• Umsatz mit Matratzenstoffen: 125,6 Millionen US-Dollar
• Performance Fabrics: 53 Millionen US-Dollar
• Kundenspezifische Designverträge: 35 Millionen US-Dollar
• Lizenzierung der Textiltechnologie: 5,2 Millionen US-Dollar

Culp, Inc. (CULP) - Canvas Business Model: Value Propositions

You're looking at Culp, Inc.'s core value drivers as they move into fiscal 2026, fresh off a major transformation. Here's the quick math on what they are offering customers right now.

Supply chain optionality and agility across multiple low-cost regions

Culp, Inc. positions its manufacturing platform and supply chain optionality as a key differentiator, especially when customers need alternatives to navigate tariff landscapes. This agility spans operations across the U.S., Haiti/Dominican Republic, Turkey, Vietnam and China. This global footprint helps them provide preferred, compliance-sophisticated sourcing solutions. The company completed the sale of its manufacturing facility in Quebec, Canada, on April 30, 2025, as part of a move toward a more flexible global platform.

The company's recent strategic integration of its two divisions is designed to increase responsiveness to customer needs and market trends, leveraging this global reach.

Innovative, high-performance fabrics for bedding and furniture

Culp, Inc. focuses on product diversification and design innovation to grow market position, even in a soft domestic mattress industry. For their contract business, they offer specific technological advancements to meet high-traffic demands. These include:

• Performance i-Clean®.
• i-Clean Barrier Plus® technology, which repels and locks out liquids and stains.
• Eco-Friendly Fabrics, such as Repreve® Recycled Polyester.

The company believes it is outperforming the industry average through these product offerings.

Full-service design and product development for custom solutions

The integration of Culp Upholstery Fabrics and Culp Home Fashions into a single, unified business enhances operational agility and collaboration. This move is intended to maximize collective talent and resources, allowing the organization to better anticipate and react to market trends. This unified approach supports the delivery of high levels of service and product offerings to customers.

Cost-competitive products due to a streamlined, asset-light model

A major value proposition is the cost structure derived from aggressive restructuring and the shift to an asset-light sourcing model for certain product lines. The company executed on initiatives that should drive better operating leverage. The total expected annualized savings from these efforts are substantial:

Cost Reduction Initiative	Expected Annualized Savings
Division Integration (Post-April 2025)	Approximately $3 million
May 2024 Cost Restructuring Plan	Approximately $10 to $11 million

For the full fiscal year 2025 (ended April 27, 2025), consolidated net sales were $213.2 million. The company incurred total restructuring and related expenses of $9.4 million in fiscal 2025, of which $5.6 million was cash expenditures. The success of this leaner platform is visible in early fiscal 2026 results; for the first quarter ended August 3, 2025, operating income was $1.6 million, a significant swing from the prior-year period's loss from operations of $(6.9) million. The Bedding segment, which underwent significant restructuring, achieved a gross profit of $2.9 million, or 10.5% of sales, compared to a negative gross profit of $(326) thousand (negative 1.2% of sales) in the prior-year period. This defintely shows the impact of the lower fixed cost base.

As of April 27, 2025, Culp, Inc. maintained $5.6 million in total cash and $12.7 million in outstanding debt under its credit facilities.

Finance: draft Q2 FY2026 cash flow projection by next Tuesday.

Culp, Inc. (CULP) - Canvas Business Model: Customer Relationships

Culp, Inc. focuses its customer relationships on serving its global customer base of leading bedding and furniture companies. The company's strategic transformation in 2025, combining Culp Upholstery Fabrics and Culp Home Fashions into a single integrated business, was explicitly designed to increase responsiveness to customer needs and market trends.

The relationship management is characterized by a commitment to high levels of service and supply chain optionality, leveraging manufacturing and sourcing capabilities across the United States, China, Haiti, Turkey, and Vietnam.

The importance of key customer relationships is evident in sales fluctuations. For example, in the fourth quarter of fiscal 2025, net sales were $48.8 million, generally flat to the prior year period's $49.5 million. This period, and the subsequent first quarter of fiscal 2026, saw sales comparisons pressured by the ordering cadence of a large residential fabric customer that uniquely concentrated more of its annual purchasing in the first half of fiscal 2025. Culp, Inc. expects sales for this large customer to normalize to a more consistent quarter-over-quarter pattern in fiscal 2026.

The mattress fabrics business segment specifically demonstrated success in deepening these ties, continuing to win market share with larger customers in the first quarter of fiscal 2026. This segment achieved growth even within a declining market, which the company attributes to strong customer relationships and product alignment.

The structure supporting these relationships involves dedicated account management, especially for major clients, and a collaborative approach to product development, supported by a trend-savvy design team. The integration initiative, sometimes referred to as Project Blaze, aims to maximize the collective talent across legacy divisions to enhance speed and creativity for customers.

The company's focus on long-term stability is also reflected in corporate governance, such as the multi-year cooperation agreement entered into with its largest shareholder in June 2025, which is intended to provide support for Culp, Inc.'s management, employees, and customers.

Here is a look at the segment sales performance for the most recently reported periods, illustrating the relative weight and performance of the customer-facing divisions:

Metric	Fiscal Year 2025 (Full Year)	Q4 Fiscal 2025	Q1 Fiscal 2026
Consolidated Net Sales	$213.2 million	$48.8 million	N/A
Mattress Fabrics Sales	Down 2.1% YoY	Up 5.3% YoY	$28.0 million (Generally flat YoY)
Upholstery Fabrics Sales	Down 8.8% YoY	Down 8.9% YoY	$22.6 million (Down approx. 20% YoY)

The company's commitment to its customer value proposition is underpinned by operational restructuring efforts designed to improve leverage and flexibility. The prior restructuring plan is expected to generate annualized savings of $10.0 million to $11.0 million, and the new integration initiative is expected to add approximately $3 million in annualized efficiency improvements and cost reductions.

The customer relationship strategy involves several key elements:

• Maintaining a global sourcing network across the U.S., China, Haiti, Turkey, and Vietnam.
• Focusing upholstery fabric sales on the commercial and hospitality sectors, which have shown resilience.
• Emphasizing Vietnam operations to upholstery customers for increased volumes over time.
• Utilizing a trend-savvy design team to help customers drive sales.

Culp, Inc. (CULP) - Canvas Business Model: Channels

Culp, Inc. serves its global customer base of leading bedding and furniture companies through a direct approach, supported by a streamlined global platform. The company markets a variety of fabrics to these customers, including fabrics produced at Culp's facilities and fabrics sourced through other suppliers. Consolidated net sales for the full fiscal year 2025 were $213.2 million.

The distribution network relies on manufacturing and sourcing capabilities strategically positioned across continents. Following a restructuring plan, Culp transitioned to an asset-light, strategic sourcing model for certain major product lines. The company's physical footprint supports this global reach.

Hub Type	Location(s)	Context/Status
Headquarters & Operations	High Point, NC, United States	Culp World Headquarters; Upholstery Fabrics location.
Manufacturing/Finishing	Stokesdale, NC, United States	Company-owned facility; received transferred operations from the closed Canadian facility.
Sourcing/Manufacturing	China	Maintained sourcing and manufacturing capability.
Sourcing/Manufacturing	Haiti	Maintained sourcing/manufacturing capability; building lease terminated in FY2025.
Sourcing/Manufacturing	Turkey	Maintained sourcing capability.
Sourcing/Manufacturing	Vietnam	Maintained sourcing capability.

Product display and direct customer engagement are facilitated through physical locations, capitalizing on industry centers. The company maintains its World Headquarters in High Point, NC, which is a major hub for the furniture industry, implying use of showrooms and participation in related trade shows like the High Point Market.

• The upholstery fabrics business targets residential and commercial upholstered furniture, including the hospitality and commercial industries.
• The company strives to differentiate itself by providing the highest levels of service, product offerings, and supply chain optionality to its customers.
• The integration of the two operating divisions into a unified CULP-branded business is designed to increase responsiveness to customer needs and market trends.

Culp, Inc. (CULP) - Canvas Business Model: Customer Segments

You're looking at Culp, Inc.'s customer base as of late 2025, right after they integrated their two main divisions-Culp Home Fashions and Culp Upholstery Fabrics-into the unified Bedding and Upholstery segments. Honestly, the customer mix is heavily influenced by the macro environment, which saw consolidated net sales of $213.2 million for the full fiscal year 2025.

Here's how the customer groups map to the latest reported segment performance:

Leading North American bedding and mattress manufacturers

This group is the core of the Bedding segment (formerly Mattress Fabrics). While the overall segment faced pressure, Culp, Inc. is clearly gaining ground here. For the full fiscal year 2025, this segment generated sales of $113.9 million, a decline of only 2.1 percent year-over-year, which management noted was better than the industry average.

• The Bedding segment won market share with larger customers, even with overall low-demand market conditions persisting into the first quarter of fiscal 2026.
• For the first quarter of fiscal 2026, the Bedding segment recorded sales of $28.0 million, which was generally flat compared to the prior-year period.

Residential furniture manufacturers and retailers

These customers drive the residential fabric sales within the Upholstery segment. This area saw significant headwinds. Full fiscal year 2025 sales for the entire Upholstery segment were $99.3 million, down 8.8 percent from the prior year, largely due to this residential weakness.

What this estimate hides is the exact split, but one large residential customer strategically managed inventory, impacting the back half of fiscal 2025.

Commercial and hospitality furniture manufacturers (a growth focus)

This is the bright spot within the Upholstery segment, where Culp, Inc. is focusing its efforts. In the fourth quarter of fiscal 2025, sales to hospitality and commercial customers grew to represent 42 percent of the Upholstery segment's total sales.

Here's a quick look at the Upholstery segment sales performance, showing the pressure on the residential side:

Reporting Period	Upholstery Segment Sales (Millions USD)	Year-over-Year Change
Fiscal 2025 Full Year	$99.3	-8.8 percent
Q4 Fiscal 2025	$21.7	-8.9 percent
Q1 Fiscal 2026	$22.6	-20 percent

Mattress-in-a-box and e-commerce bedding brands

These customers fall under the Bedding segment umbrella. While Culp, Inc. doesn't break out this specific customer type financially, the overall segment success suggests they are serving this evolving market effectively, given the segment's relative stability compared to the Upholstery side.

The company markets a variety of fabrics to its global customer base, including fabrics produced at Culp's facilities and those sourced through other suppliers, with manufacturing and sourcing capabilities in the United States, China, Haiti, Turkey, and Vietnam.

Finance: draft 13-week cash view by Friday.

Culp, Inc. (CULP) - Canvas Business Model: Cost Structure

You're looking at the cost side of Culp, Inc. (CULP) as of late 2025, and honestly, the numbers show a business in transition, heavily influenced by a major cost-cutting effort.

The primary driver of cost is the High cost of goods sold (COGS) driven by raw materials and global sourcing. This is evident when you look at the quarter that capped the fiscal year. For the fourth quarter of fiscal 2025, Cost of Sales ate up 84.3% of the net sales of $48.8 million. That means for every dollar of revenue, over 84 cents went straight to making the product, which is typical for a manufacturer but highlights the pressure from raw material costs and the global supply chain you mentioned.

The company took a big hit, but it was intentional, related to the Significant restructuring and related expenses of $9.4 million in fiscal 2025. This total charge for the full fiscal year included $5.6 million in actual cash expenditures. This massive expense reflects the heavy lifting done to transform the cost structure, including facility closures and consolidations, particularly in the mattress fabrics division, as they shifted toward a more asset-light, strategic sourcing model.

The restructuring was designed to lower the Manufacturing and operating expenses for facilities in the US and abroad. The goal was to achieve annualized savings of $10.0 million to $11.0 million, which should translate directly into a lower fixed cost base moving into fiscal 2026. While specific manufacturing overhead isn't broken out separately from COGS in the top-line tables, the operating loss improvement shows the fixed cost reduction is working; the GAAP loss from operations for the full year was $(18.4) million, an improvement from the prior year's loss of $(11.3) million, even with the large restructuring charge included.

For the Selling, General, and Administrative (SG&A) expenses for design and sales, we can look at the fourth quarter data to see the ongoing run rate before the full integration benefits kick in. For Q4 2025, SG&A was $8.470 million, which represented 17.4% of that quarter's net sales. This covers the costs for design teams and the sales force supporting both the Bedding and Upholstery segments.

Here's a quick look at the expense profile based on the fourth quarter of fiscal 2025:

Cost Component	Amount (Thousands USD)	As Percentage of Q4 Sales
Cost of Sales (COGS)	$41,120	84.3%
Selling, General, and Administrative Expenses (SG&A)	$8,470	17.4%
Restructuring Expense (Non-Cash/Cash Impact)	$1,422	2.9%

The company is actively managing these costs, and the restructuring is key to future performance. You should watch for the following cost-related actions:

• Annualized savings target from restructuring: $10.0 million to $11.0 million.
• Cash portion of total restructuring charges in FY2025: $5.6 million.
• Q4 2025 Net Sales for context: $48.8 million.
• Total FY2025 Restructuring and related expenses: $9.4 million.
• Expected net cash proceeds from Canada facility sale in FY2026: $3.0 million to $3.5 million.

Finance: draft 13-week cash view by Friday.

Culp, Inc. (CULP) - Canvas Business Model: Revenue Streams

You're looking at the core ways Culp, Inc. brought in money for the fiscal year ending April 27, 2025. The revenue streams are clearly segmented by the end-use of the fabric, though the company has recently moved toward a unified CULP-branded business to optimize operations.

The primary revenue sources remain the Sales of Mattress Fabrics (Culp Home Fashions) and Sales of Upholstery Fabrics (Culp Upholstery Fabrics). These two segments drive the top line, which saw a contraction in the challenging macro environment of fiscal 2025.

Consolidated net sales for fiscal year 2025 totaled $213.2 million, which was a decrease of 5.4 percent from the prior fiscal year. This top-line figure is the sum of the two main operating segments.

Here's a quick breakdown of how those sales were split for the full fiscal year 2025:

Revenue Stream Segment	Fiscal Year 2025 Net Sales	Year-over-Year Change
Sales of Mattress Fabrics (Culp Home Fashions)	$113.9 million	Down 2.1 percent
Sales of Upholstery Fabrics (Culp Upholstery Fabrics)	$99.3 million (Calculated)	Down 8.8 percent

The upholstery fabric business, specifically, faced pressure from historically low demand in the residential home furnishings market and challenges related to high tariff rates on China-produced goods. To combat the cost pressures from these trade uncertainties, Culp, Inc. has employed specific strategies within its segments.

Regarding Revenue from price increases implemented to mitigate tariff impacts, the company signaled this as a key action, particularly for the upholstery side. While the specific dollar amount of revenue generated from price increases within the fiscal 2025 reporting period isn't explicitly itemized as a separate revenue stream, the strategy was in place to manage costs.

• The Upholstery Fabrics segment indicated it would handle tariffs with price increases.
• The company also leveraged supply optionality, such as shifting production to its Haiti facility, which is unaffected by certain tariffs, to mitigate these costs.
• For the subsequent fiscal year 2026, management noted they had 'recently increased prices to mitigate tariff costs and right-size margins in certain areas,' expecting an annualized benefit of $2.5 million starting in the second quarter of fiscal 2026.

The Mattress Fabrics segment, despite overall sales being down 2.1 percent for the year, showed consistent improvement throughout fiscal 2025, driven by cost and efficiency benefits from a completed restructuring plan. This segment's ability to capture market share, even in a declining market, suggests strong underlying revenue generation capability independent of the tariff-related pricing actions seen in the upholstery segment.