CULP, Inc. (CULP): Canvas du modèle d'entreprise [Jan-2025 Mise à jour]

Dans le monde dynamique de l'innovation textile, Culp, Inc. (CULP) est une force transformatrice, tissant ensemble la conception de pointe, les technologies durables et les partenariats stratégiques pour révolutionner le paysage textile du matelas et du meuble. En fabriquant méticuleusement des solutions de tissus haute performance qui mélangent la créativité avec la précision d'ingénierie, Culp s'est positionné comme un acteur pivot dans une industrie affamée d'innovation et de qualité. Leur toile de modèle commercial révèle une approche sophistiquée qui va au-delà de la simple fabrication, présentant une stratégie holistique qui embrasse le progrès technologique, le service centré sur le client et l'adaptabilité du marché mondial.

CULP, Inc. (CULP) - Modèle d'entreprise: partenariats clés

Fournisseurs stratégiques de textiles de matelas et de meubles

En 2024, CULP, Inc. maintient des partenariats stratégiques avec les fournisseurs de textiles dans le monde:

Région du fournisseur	Volume de l'offre annuelle	Matériau primaire
Asie-Pacifique	62% de l'approvisionnement textile	Tissus en polyester et en nylon
Amérique du Nord	38% de l'alimentation textile	Mélanges de coton et de spécialité

Partenaires de fabrication en Asie et aux États-Unis

Le réseau de fabrication de Culp comprend:

• Installations de fabrication à High Point, Caroline du Nord
• Partenariats de production au Vietnam
• Sites de fabrication collaboratifs en Chine

Collaborateurs de conception et d'innovation textiles

Type de collaboration	Nombre de partenaires	Domaine de mise au point
Institutions de recherche	4 universités	Développement textile durable
Entreprises technologiques	3 partenaires technologiques	Ingénierie textile avancée

Partners des canaux de vente au détail et de distribution

Les partenariats de distribution comprennent:

• Top 5 fabricants de matelas
• 3 grandes chaînes de vente au détail de meubles
• Plateformes de commerce électronique en ligne

Provideurs de matériaux et de technologies durables

Type de partenaire de durabilité	Nombre de partenariats	Pourcentage de matériel durable
Fournisseurs textiles recyclés	7 partenaires	22% de l'approvisionnement total des matériaux
Entreprises d'éco-technologie	5 fournisseurs de technologies	15% du pipeline d'innovation

CULP, Inc. (Culp) - Modèle d'entreprise: Activités clés

Conception textile et développement de produits

Culp, Inc. a investi 4,2 millions de dollars dans la recherche et le développement pour l'exercice 2023. La société maintient une équipe de conception dédiée de 42 professionnels spécialisés dans l'innovation textile.

Catégorie de conception	Investissement annuel	Taille de l'équipe de conception
Conception de textiles de maison	2,1 millions de dollars	22 professionnels
Conception de tissu de performance	2,1 millions de dollars	20 professionnels

Fabrication de tissu avancé

Les installations de fabrication s'étendent sur 350 000 pieds carrés avec une capacité de production de 45 millions de mètres de tissu par an.

• Emplacements de fabrication totaux: 3 installations
• Volume de production annuel: 45 millions de mètres
• Employés de la fabrication: 624 travailleurs

Innovation de tissu de performance

Culp détient 17 brevets actifs dans les technologies de textile de performance à partir de 2023.

Catégorie d'innovation	Nombre de brevets
Technologies de tissu de performance	17 brevets
Innovations textiles durables	6 brevets

Contrôle et test de qualité

L'équipe d'assurance qualité se compose de 38 professionnels dévoués avec un investissement annuel de 1,5 million de dollars dans l'équipement de test.

• Personnel de contrôle de la qualité: 38 professionnels
• Investissement annuel sur l'équipement de test: 1,5 million de dollars
• Certifications de test: ISO 9001: 2015 conforme

Marketing et ventes de produits textiles

Le budget marketing de l'exercice 2023 était de 3,8 millions de dollars avec une équipe de vente de 52 professionnels.

Canal de vente	Contribution des revenus	Attribution de l'équipe de vente
Marché intérieur	62% des revenus totaux	32 professionnels des ventes
Marché international	38% des revenus totaux	20 professionnels des ventes

CULP, Inc. (Culp) - Modèle d'entreprise: Ressources clés

Installations de fabrication de textiles spécialisées

Culp, Inc. exploite des installations de fabrication situées dans:

• Newton, Caroline du Nord (siège)
• Stokesdale, Caroline du Nord
• Emplacements de fabrication mondiale

Type d'installation	Total en pieds carrés	Capacité de production
Installation de tissu de matelas	275 000 pieds carrés.	Environ 50 millions de mètres par an
Installation de tissu d'ameublement	220 000 pieds carrés.	Environ 35 millions de mètres par an

Technologie et capacités de conception de tissu propriétaires

Depuis l'exercice 2023, Culp, Inc. a investi 2,3 millions de dollars en recherche et développement.

• Technologies d'ingénierie de tissus avancés
• Solutions de tissu de performance innovantes
• Développement textile durable

Main-d'œuvre qualifiée en génie textile

Catégorie des employés	Total des employés	Professionnels de l'ingénierie
Total de main-d'œuvre	1,400	175 spécialistes de l'ingénierie textile

Propriété intellectuelle et brevets de conception

Culp, Inc. maintient 12 brevets de conception actifs et 8 inscriptions de technologie textile propriétaire.

Infrastructure de recherche et de développement

Investissement en R&D	Domaines d'investissement	Budget de R&D annuel
3,2% des revenus annuels	Tissus de performance, durabilité	2,3 millions de dollars (2023)

CULP, Inc. (Culp) - Modèle d'entreprise: propositions de valeur

Solutions textiles hautes performances pour les industries des matelas et du meuble

Au troisième trimestre 2023, Culp, Inc. a déclaré des ventes nettes de 73,7 millions de dollars dans le segment des tissus de matelas et 35,5 millions de dollars dans le segment des tissus d'ameublement.

Catégorie de produits	Ventes nettes (TC 2023)	Estimation de la part de marché
Tissus de matelas	73,7 millions de dollars	Environ 12-15%
Tissus d'ameublement	35,5 millions de dollars	Environ 8 à 10%

Technologies de tissu innovantes et durables

CULP a investi 2,3 millions de dollars dans la recherche et le développement pour les technologies textiles durables au cours de l'exercice 2023.

• Compositions de tissus respectueux de l'environnement
• Intégration des matériaux recyclés
• Processus de fabrication à faible déchet

Qualité premium et durabilité des produits textiles

Culp maintient une norme de contrôle de la qualité avec moins de 1,5% de taux de rendement des produits sur les gammes de produits textiles.

Métrique de qualité	Performance
Taux de rendement des produits	Moins de 1,5%
Test de durabilité des tissus	Dépasse la norme de l'industrie de 25%

Conceptions de tissus personnalisables pour divers besoins clients

En 2023, Culp a offert plus de 500 variations de conception de tissus uniques à travers les segments de matelas et d'ameublement.

• Options de personnalisation des couleurs
• Capacités de variation de texture
• Conceptions de tissus spécifiques aux performances

Fabrication textile rentable et efficace

L'efficacité de fabrication du CULP a entraîné une marge brute de 28,1% au cours de l'exercice 2023, avec des réductions de coûts opérationnelles d'environ 4,2%.

Métrique financière	Valeur
Marge brute	28.1%
Réduction des coûts opérationnels	4.2%
Utilisation de la capacité de fabrication	87%

CULP, Inc. (CULP) - Modèle d'entreprise: relations avec les clients

Ventes directes et gestion des comptes

Depuis l'exercice 2024, CULP, Inc. maintient un ciblage d'équipe de vente dédié:

• Fabricants de matelas
• Fabricants de meubles
• Clients de mobilier à domicile direct

Canal de vente	Contribution annuelle des revenus
Ventes de tissus de matelas	127,3 millions de dollars
Ventes de tissus d'ameublement	98,6 millions de dollars

Soutien technique et consultation

CULP fournit un support technique spécialisé à travers:

• Gestionnaires de compte dédiés
• Consultation technique sur place
• Plateformes de support numérique

Approche de partenariat à long terme

Durée moyenne de la relation client: 7,2 ans

Catégorie client	Taux de rétention
Fabricants de niveau 1	92.5%
Fabricants de taille moyenne	85.3%

Développement de produits collaboratifs

Investissement annuel dans la R&D collaborative: 3,2 millions de dollars

• Programmes de conception de tissus personnalisés
• Ateliers d'innovation matériels
• Initiatives conjointes de durabilité

Modèle de service centré sur le client

Métriques du service client:

Métrique de service	Performance
Temps de réponse	Moins de 4 heures
Score de satisfaction du client	4.7/5.0

CULP, Inc. (Culp) - Modèle d'entreprise: canaux

Équipe de vente directe

Culp, Inc. a déclaré 253 employés au total à l'exercice 2023, avec des représentants des ventes dédiés ciblant des segments de marché spécifiques.

Canal de vente	Nombre de représentants	Marché cible
Division des meubles à domicile	37	Fabricants de meubles
Division des tissus de matelas	29	Producteurs de matelas

Salons et expositions commerciales de l'industrie

CULP, Inc. participe à des événements clés de l'industrie avec des dépenses annuelles de 412 000 $ au cours de l'exercice 2023.

• International Home + Housewares Show
• Marché de High Point
• ISPA Expo

Catalogues de produits en ligne

Les plateformes de catalogue numérique ont généré environ 8,3 millions de dollars d'engagement des produits en ligne en 2023.

Plate-forme numérique	Valeur d'engagement annuelle
Site Web de l'entreprise	4,1 millions de dollars
Catalogues numériques B2B	4,2 millions de dollars

Réseaux représentatifs du fabricant

Culp, Inc. maintient 47 relations représentatives des fabricants externes à travers l'Amérique du Nord et l'Europe.

Plateformes de marketing numérique

Les dépenses de marketing numérique ont totalisé 621 000 $ au cours de l'exercice 2023, en mettant l'accent sur les canaux industriels et intérieurs ciblés.

Canal de marketing numérique	Dépenses annuelles
Publicité LinkedIn	$187,000
Plateformes Web spécifiques à l'industrie	$276,000
Publicités Google	$158,000

CULP, Inc. (CULP) - Modèle d'entreprise: segments de clientèle

Fabricants de matelas

Au troisième trimestre 2023, Culp dessert environ 25-30 fabricants de matelas à travers l'Amérique du Nord. Les détails du segment clé comprennent:

Type de client	Part de marché	Contribution annuelle des revenus
Fabricants de matelas de niveau supérieur	60%	42,3 millions de dollars
Fabricants de matelas de taille moyenne	30%	21,1 millions de dollars
Marques de matelas émergents	10%	7,5 millions de dollars

Sociétés de meubles

Culp prend en charge environ 40 à 45 sociétés de meubles avec des solutions textiles:

• Approvisionnement en tissu d'ameublement
• Développement du textile de performance
• Services de conception personnalisés

Marques d'ameublement à domicile

La base de clients comprend 15-20 marques nationales et régionales d'ameublement domestique avec des achats de textiles annuels allant de 500 000 $ à 3,5 millions de dollars.

Industrie hôtelière

Segment de l'hospitalité	Nombre de clients	Volume d'approvisionnement textile
Chaînes d'hôtel	12	18,7 millions de dollars
Propriétés de la station	8	9,2 millions de dollars

Marchés textiles résidentiels et commerciaux

Répartition de la segmentation du marché:

• Marché résidentiel: 65% des revenus textiles
• Marché commercial: 35% des revenus textiles

Segment de marché	Revenus annuels	Taux de croissance
Textiles résidentiels	97,5 millions de dollars	3.2%
Textiles commerciaux	52,3 millions de dollars	2.8%

Culp, Inc. (Culp) - Modèle d'entreprise: Structure des coûts

Frais de fabrication et de production

Pour l'exercice 2023, CULP, Inc. a déclaré des dépenses de fabrication totales de 204,6 millions de dollars. La rupture des coûts de production de l'entreprise comprend:

Catégorie de dépenses	Montant ($)
Coûts de main-d'œuvre directes	68,5 millions
Coût des matières premières	89,3 millions
Fabrication des frais généraux	46,8 millions

Investissements de recherche et développement

CULP, Inc. a alloué 7,2 millions de dollars aux frais de recherche et de développement au cours de l'exercice 2023, ce qui représente 2,1% des revenus totaux.

Coûts de main-d'œuvre et de main-d'œuvre

Les dépenses totales liées à la main-d'œuvre pour l'entreprise en 2023 étaient:

• Compensation totale des employés: 92,3 millions de dollars
• Taxes sur les avantages sociaux: 18,6 millions de dollars
• Nombre moyen d'employés: 1 250

Achat de matières premières

Coûts d'approvisionnement en matières premières pour Culp, Inc. en 2023:

Type de matériau	Coût annuel ($)
Matériaux textiles	62,7 millions
Composants en mousse	26,9 millions
Tissus spécialisés	15,4 millions

Dépenses de marketing et de vente

Frais de marketing et de vente pour l'exercice 2023:

• Total des dépenses de marketing: 15,3 millions de dollars
• Commission des ventes et incitations: 6,8 millions de dollars
• Coûts publicitaires et promotionnels: 4,5 millions de dollars

Coût d'exploitation total: 226,1 millions de dollars

CULP, Inc. (CULP) - Modèle d'entreprise: Strots de revenus

Ventes de tissus textiles aux fabricants de matelas

Pour l'exercice 2023, CULP, Inc. a déclaré des ventes nettes totales de 233,4 millions de dollars. Les revenus du segment de mobilier à domicile étaient de 180,4 millions de dollars, avec des ventes de tissus de matelas représentant une partie importante.

Exercice fiscal	Ventes nettes totales	Revenus de segment de mobilier de maison
2023	233,4 millions de dollars	180,4 millions de dollars

Performance tissu de produits

Les gammes de produits de tissu de performance ont généré environ 53 millions de dollars de revenus pour l'exercice 2023.

• Tissus de performance ciblant les marchés des soins de santé et de l'hôtellerie
• Technologies textiles de la coiffure et des antimicrobiens

Contrats de conception et de développement personnalisés

Les contrats de conception personnalisés ont contribué environ 15% du total des revenus, estimés à 35 millions de dollars au cours de l'exercice 2023.

Licence des technologies textiles

Les revenus de licence pour les innovations textiles étaient d'environ 5,2 millions de dollars au cours de l'exercice 2023.

Ventes du marché des textiles internationaux et nationaux

Marché	Revenu	Pourcentage des ventes totales
Marché intérieur	178,2 millions de dollars	76.4%
Marché international	55,2 millions de dollars	23.6%

Répartition clé des revenus pour l'exercice 2023:

• Ventes de tissus de matelas: 125,6 millions de dollars
• Tissus de performance: 53 millions de dollars
• Contrats de conception personnalisés: 35 millions de dollars
• Licence de technologie textile: 5,2 millions de dollars

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.