Culp, Inc. (CULP): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el mundo dinámico de la innovación textil, Culp, Inc. (CULP) se erige como una fuerza transformadora, uniendo el diseño de vanguardia, las tecnologías sostenibles y las asociaciones estratégicas para revolucionar el paisaje textil de colchones y muebles. Al crear meticulosamente las soluciones de telas de alto rendimiento que combinan la creatividad con precisión de ingeniería, Culp se ha posicionado como un jugador fundamental en una industria hambrienta de innovación y calidad. Su lienzo de modelo de negocio revela un enfoque sofisticado que va más allá de la mera fabricación, mostrando una estrategia holística que abarca el avance tecnológico, el servicio centrado en el cliente y la adaptabilidad del mercado global.

Culp, Inc. (CULP) - Modelo de negocio: asociaciones clave

Proveedores estratégicos de colchones y muebles textiles

A partir de 2024, Culp, Inc. mantiene asociaciones estratégicas con proveedores textiles a nivel mundial:

Región de proveedor	Volumen de suministro anual	Material primario
Asia Pacífico	62% del suministro textil	Telas de poliéster y nylon
América del norte	38% del suministro textil	Mezclas de algodón y especialidad

Socios de fabricación en Asia y Estados Unidos

La red de fabricación de Culp incluye:

• Instalaciones de fabricación en High Point, Carolina del Norte
• Asociaciones de producción en Vietnam
• Sitios de fabricación colaborativa en China

Colaboradores de diseño e innovación textil

Tipo de colaboración	Número de socios	Área de enfoque
Instituciones de investigación	4 universidades	Desarrollo textil sostenible
Empresas tecnológicas	3 socios tecnológicos	Ingeniería textil avanzada

Socios de canal minorista y de distribución

Las asociaciones de distribución incluyen:

• Top 5 fabricantes de colchones
• 3 cadenas minoristas de muebles principales
• Plataformas de comercio electrónico en línea

Proveedores de materiales y tecnología sostenibles

Tipo de socio de sostenibilidad	Número de asociaciones	Porcentaje de material sostenible
Proveedores textiles reciclados	7 socios	22% del abastecimiento de material total
Empresas ecológicas	5 proveedores de tecnología	15% de la tubería de innovación

Culp, Inc. (CULP) - Modelo de negocio: actividades clave

Diseño textil y desarrollo de productos

Culp, Inc. invirtió $ 4.2 millones en investigación y desarrollo para el año fiscal 2023. La compañía mantiene un equipo de diseño dedicado de 42 profesionales especializados en innovación textil.

Categoría de diseño	Inversión anual	Tamaño del equipo de diseño
Diseño de textiles para el hogar	$ 2.1 millones	22 profesionales
Diseño de tela de rendimiento	$ 2.1 millones	20 profesionales

Fabricación de telas avanzadas

Las instalaciones de fabricación abarcan 350,000 pies cuadrados con capacidad de producción de 45 millones de yardas de tela anualmente.

• Ubicaciones de fabricación total: 3 instalaciones
• Volumen de producción anual: 45 millones de yardas
• Empleados de fabricación: 624 trabajadores

Innovación de tela de rendimiento

Culp posee 17 patentes activas en tecnologías textiles de rendimiento a partir de 2023.

Categoría de innovación	Número de patentes
Tecnologías de tela de rendimiento	17 patentes
Innovaciones textiles sostenibles	6 patentes

Control y pruebas de calidad

El equipo de garantía de calidad consta de 38 profesionales dedicados con una inversión anual de $ 1.5 millones en equipos de prueba.

• Personal de control de calidad: 38 profesionales
• Inversión de equipos de prueba anuales: $ 1.5 millones
• Certificaciones de prueba: ISO 9001: 2015 Cumplimiento

Marketing y ventas de productos textiles

El presupuesto de marketing para el año fiscal 2023 fue de $ 3.8 millones con un equipo de ventas de 52 profesionales.

Canal de ventas	Contribución de ingresos	Asignación del equipo de ventas
Mercado interno	62% de los ingresos totales	32 profesionales de ventas
Mercado internacional	38% de los ingresos totales	20 profesionales de ventas

Culp, Inc. (CULP) - Modelo de negocio: recursos clave

Instalaciones de fabricación textil especializada

Culp, Inc. opera instalaciones de fabricación ubicadas en:

• Newton, Carolina del Norte (sede)
• Stokesdale, Carolina del Norte
• Ubicaciones de fabricación global

Tipo de instalación	Hoques cuadrados totales	Capacidad de producción
Instalación de tela de colchón	275,000 pies cuadrados.	Aproximadamente 50 millones de yardas anualmente
Instalación de tela de tapicería	220,000 pies cuadrados.	Aproximadamente 35 millones de yardas anualmente

Tecnología de tela y capacidades de diseño

A partir del año fiscal 2023, Culp, Inc. invirtió $ 2.3 millones en investigación y desarrollo.

• Tecnologías avanzadas de ingeniería de telas
• Soluciones de tela de rendimiento innovadoras
• Desarrollo textil sostenible

Fuerza laboral calificada en ingeniería textil

Categoría de empleado	Total de empleados	Profesionales de ingeniería
Fuerza de trabajo total	1,400	175 especialistas en ingeniería textil

Propiedad intelectual y patentes de diseño

Culp, Inc. mantiene 12 patentes de diseño activos y 8 registros de tecnología textil patentada.

Infraestructura de investigación y desarrollo

Inversión de I + D	Áreas de enfoque de innovación	Presupuesto anual de I + D
3.2% de los ingresos anuales	Telas de rendimiento, sostenibilidad	$ 2.3 millones (2023)

Culp, Inc. (CULP) - Modelo de negocio: propuestas de valor

Soluciones textiles de alto rendimiento para industrias de muebles y colchones

A partir del tercer trimestre de 2023, Culp, Inc. reportó ventas netas de $ 73.7 millones en el segmento de telas de colchón y $ 35.5 millones en el segmento de telas de tapicería.

Categoría de productos	Ventas netas (tercer trimestre 2023)	Estimación de la cuota de mercado
Telas de colchón	$ 73.7 millones	Aproximadamente 12-15%
Telas de tapicería	$ 35.5 millones	Aproximadamente 8-10%

Tecnologías de telas innovadoras y sostenibles

Culp ha invertido $ 2.3 millones en investigación y desarrollo para tecnologías textiles sostenibles en el año fiscal 2023.

• Composiciones de tela ecológicas
• Integración de material reciclado
• Procesos de fabricación de bajos desechos

Calidad premium y durabilidad en productos textiles

CULP mantiene un estándar de control de calidad con una tasa de retorno del producto inferior al 1.5% en las líneas de productos textiles.

Métrica de calidad	Actuación
Tasa de devolución del producto	Menos de 1.5%
Prueba de durabilidad de la tela	Excede el estándar de la industria en un 25%

Diseños de tela personalizables para diversas necesidades de clientes

En 2023, Culp ofreció más de 500 variaciones únicas de diseño de tela en los segmentos de colchones y tapicería.

• Opciones de personalización de color
• Capacidades de variación de textura
• Diseños de tela específicos de rendimiento

Fabricación textil rentable y eficiente

La eficiencia de fabricación de Culp dio como resultado un margen bruto del 28,1% en el año fiscal 2023, con reducciones de costos operativos de aproximadamente 4.2%.

Métrica financiera	Valor
Margen bruto	28.1%
Reducción de costos operativos	4.2%
Utilización de la capacidad de fabricación	87%

Culp, Inc. (CULP) - Modelo de negocio: relaciones con los clientes

Ventas directas y gestión de cuentas

A partir del año fiscal 2024, Culp, Inc. mantiene un equipo de ventas dedicado dirigido:

• Fabricantes de colchones
• Fabricantes de muebles
• Clientes directos de muebles para el hogar

Canal de ventas	Contribución anual de ingresos
Venta de tela de colchón	$ 127.3 millones
Ventas de tela de tapicería	$ 98.6 millones

Soporte técnico y consulta

CULP proporciona soporte técnico especializado a través de:

• Gerentes de cuentas dedicados
• Consulta técnica en el sitio
• Plataformas de soporte digital

Enfoque de asociación a largo plazo

Duración promedio de la relación con el cliente: 7.2 años

Categoría de clientes	Tasa de retención
Fabricantes de nivel 1	92.5%
Fabricantes de tamaño mediano	85.3%

Desarrollo de productos colaborativos

Inversión anual en I + D colaborativa: $ 3.2 millones

• Programas de diseño de telas personalizados
• Talleres de innovación de materiales
• Iniciativas de sostenibilidad conjunta

Modelo de servicio centrado en el cliente

Métricas de servicio al cliente:

Métrico de servicio	Actuación
Tiempo de respuesta	Menos de 4 horas
Puntuación de satisfacción del cliente	4.7/5.0

Culp, Inc. (CULP) - Modelo de negocio: canales

Equipo de ventas directas

Culp, Inc. reportó 253 empleados totales a partir del año fiscal 2023, con representantes de ventas dedicados dirigidos a segmentos de mercado específicos.

Canal de ventas	Número de representantes	Mercado objetivo
División de muebles para el hogar	37	Fabricantes de muebles
División de telas de colchón	29	Productores de colchones

Ferias y exhibiciones de la industria

Culp, Inc. participa en eventos clave de la industria con gastos anuales de exhibición de $ 412,000 en el año fiscal 2023.

• Home International + Show de Wousewares
• Mercado de puntos
• ISPA Expo

Catálogos de productos en línea

Las plataformas de catálogo digital generaron aproximadamente $ 8.3 millones en participación de productos en línea en 2023.

Plataforma digital	Valor de compromiso anual
Sitio web de la empresa	$ 4.1 millones
Catálogos digitales B2B	$ 4.2 millones

Redes representativas del fabricante

Culp, Inc. mantiene 47 relaciones representativas de fabricantes externos en América del Norte y Europa.

Plataformas de marketing digital

Los gastos de marketing digital totalizaron $ 621,000 en el año fiscal 2023, con enfoque en canales de diseño industrial e interiores específicos.

Canal de marketing digital	Gasto anual
Publicidad de LinkedIn	$187,000
Plataformas web específicas de la industria	$276,000
Ads de Google	$158,000

Culp, Inc. (CULP) - Modelo de negocio: segmentos de clientes

Fabricantes de colchones

A partir del tercer trimestre de 2023, Culp sirve aproximadamente 25-30 fabricantes de colchones en América del Norte. Los detalles del segmento clave incluyen:

Tipo de cliente	Cuota de mercado	Contribución anual de ingresos
Fabricantes de colchones de primer nivel	60%	$ 42.3 millones
Fabricantes de colchones de tamaño mediano	30%	$ 21.1 millones
Marcas de colchones emergentes	10%	$ 7.5 millones

Compañías de muebles

Culp admite aproximadamente 40-45 compañías de muebles con soluciones textiles:

• Suministro de tela de tapicería
• Desarrollo textil de rendimiento
• Servicios de diseño personalizados

Marcas de muebles para el hogar

La base de clientes incluye 15-20 marcas nacionales y regionales de muebles para el hogar con adquisiciones textiles anuales que van desde $ 500,000 a $ 3.5 millones.

Industria hotelera

Segmento de hospitalidad	Número de clientes	Volumen de adquisición textil
Cadenas de hotel	12	$ 18.7 millones
Propiedades del resort	8	$ 9.2 millones

Mercados textiles residenciales y comerciales

Desglose de segmentación del mercado:

• Mercado residencial: 65% de los ingresos textiles
• Mercado comercial: 35% de los ingresos textiles

Segmento de mercado	Ingresos anuales	Índice de crecimiento
Textiles residenciales	$ 97.5 millones	3.2%
Textiles comerciales	$ 52.3 millones	2.8%

Culp, Inc. (CULP) - Modelo de negocio: Estructura de costos

Gastos de fabricación y producción

Para el año fiscal 2023, Culp, Inc. reportó gastos de fabricación totales de $ 204.6 millones. El desglose de los costos de producción de la compañía incluye:

Categoría de gastos	Monto ($)
Costos de mano de obra directa	68.5 millones
Costos de materia prima	89.3 millones
Sobrecarga de fabricación	46.8 millones

Inversiones de investigación y desarrollo

Culp, Inc. asignó $ 7.2 millones a los gastos de investigación y desarrollo en el año fiscal 2023, lo que representa el 2.1% de los ingresos totales.

Costos de mano de obra y de la fuerza laboral

Los gastos totales relacionados con la fuerza laboral para la compañía en 2023 fueron:

• Compensación total de empleados: $ 92.3 millones
• Beneficios e impuestos sobre la nómina: $ 18.6 millones
• Número promedio de empleados: 1.250

Adquisición de materia prima

Costos de adquisición de materia prima para Culp, Inc. en 2023:

Tipo de material	Costo anual ($)
Materiales textiles	62.7 millones
Componentes de espuma	26.9 millones
Telas especializadas	15.4 millones

Gastos de marketing y ventas

Gastos de marketing y ventas para el año fiscal 2023:

• Gasto total de marketing: $ 15.3 millones
• Comisión de ventas e incentivos: $ 6.8 millones
• Costos publicitarios y promocionales: $ 4.5 millones

Costos operativos totales: $ 226.1 millones

Culp, Inc. (CULP) - Modelo de negocio: flujos de ingresos

Ventas de telas textiles a fabricantes de colchones

Para el año fiscal 2023, Culp, Inc. reportó ventas netas totales de $ 233.4 millones. Los ingresos del segmento de muebles para el hogar fueron de $ 180.4 millones, y las ventas de telas de colchón representan una porción significativa.

Año fiscal	Ventas netas totales	Ingresos del segmento de muebles para el hogar
2023	$ 233.4 millones	$ 180.4 millones

Líneas de productos de tela de rendimiento

Las líneas de productos de tela de rendimiento generaron aproximadamente $ 53 millones en ingresos para el año fiscal 2023.

• Fabrics de rendimiento dirigidas a los mercados de atención médica y hospitalidad
• Tecnologías textiles antimicrobianas y de absorción de humedad

Contratos de diseño y desarrollo personalizados

Los contratos de diseño personalizado contribuyeron aproximadamente al 15% de los ingresos totales, estimados en $ 35 millones en el año fiscal 2023.

Licencias de tecnologías textiles

Los ingresos por licencia para innovaciones textiles fueron de aproximadamente $ 5.2 millones en el año fiscal 2023.

Ventas del mercado textil internacional y nacional

Mercado	Ganancia	Porcentaje de ventas totales
Mercado interno	$ 178.2 millones	76.4%
Mercado internacional	$ 55.2 millones	23.6%

Desglose de ingresos clave para el año fiscal 2023:

• Ventas de tela de colchón: $ 125.6 millones
• Fabrics de rendimiento: $ 53 millones
• Contratos de diseño personalizados: $ 35 millones
• Licencias de tecnología textil: $ 5.2 millones

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.