Culp, Inc. (CULP): Modelo de negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico da inovação têxtil, a Culp, Inc. (CULP) permanece como uma força transformadora, tecendo juntos o design de ponta, tecnologias sustentáveis ​​e parcerias estratégicas para revolucionar a paisagem têxtil de colchão e móveis. Ao elaborar meticulosamente soluções de tecido de alto desempenho que misturam criatividade com precisão de engenharia, a CULP se posicionou como um participante fundamental em uma indústria faminta por inovação e qualidade. Seu modelo de negócios Canvas revela uma abordagem sofisticada que vai além da mera fabricação, mostrando uma estratégia holística que abraça o avanço tecnológico, o serviço centrado no cliente e a adaptabilidade global do mercado.

Culp, Inc. (CULP) - Modelo de negócios: Parcerias -chave

Fornecedores estratégicos de têxteis de colchão e móveis

A partir de 2024, a Culp, Inc. mantém parcerias estratégicas com fornecedores têxteis globalmente:

Região do fornecedor	Volume anual de oferta	Material primário
Ásia -Pacífico	62% do suprimento têxtil	Tecidos de poliéster e nylon
América do Norte	38% do suprimento têxtil	Algodão e misturas especializadas

Parceiros de manufatura na Ásia e Estados Unidos

A rede de fabricação da Culp inclui:

• Instalações de fabricação em High Point, Carolina do Norte
• Parcerias de produção no Vietnã
• Locais de fabricação colaborativa na China

Design têxtil e colaboradores de inovação

Tipo de colaboração	Número de parceiros	Área de foco
Instituições de pesquisa	4 universidades	Desenvolvimento têxtil sustentável
Empresas de tecnologia	3 parceiros de tecnologia	Engenharia têxtil avançada

Parceiros de canal de varejo e distribuição

As parcerias de distribuição incluem:

• 5 principais fabricantes de colchões
• 3 principais cadeias de varejo de móveis
• Plataformas online de comércio eletrônico

Materiais sustentáveis ​​e fornecedores de tecnologia

Tipo de parceiro de sustentabilidade	Número de parcerias	Porcentagem de material sustentável
Fornecedores têxteis reciclados	7 parceiros	22% do fornecimento total de materiais
Empresas de Eco-Technology	5 provedores de tecnologia	15% do pipeline de inovação

Culp, Inc. (CULP) - Modelo de negócios: Atividades -chave

Design têxtil e desenvolvimento de produtos

A Culp, Inc. investiu US $ 4,2 milhões em pesquisa e desenvolvimento para o ano fiscal de 2023. A empresa mantém uma equipe de design dedicada de 42 profissionais especializados em inovação têxtil.

Categoria de design	Investimento anual	Tamanho da equipe de design
Design de têxteis domésticos	US $ 2,1 milhões	22 profissionais
Design de tecido de desempenho	US $ 2,1 milhões	20 profissionais

Fabricação avançada de tecido

As instalações de fabricação abrangem 350.000 pés quadrados com capacidade de produção de 45 milhões de jardas anualmente.

• Locais de fabricação totais: 3 instalações
• Volume anual de produção: 45 milhões de jardas
• Funcionários de manufatura: 624 trabalhadores

Inovação de tecido de desempenho

A CULP possui 17 patentes ativas em tecnologias de desempenho em textiles a partir de 2023.

Categoria de inovação	Número de patentes
Tecnologias de tecido de desempenho	17 patentes
Inovações têxteis sustentáveis	6 patentes

Controle e teste de qualidade

A equipe de garantia de qualidade consiste em 38 profissionais dedicados com investimento anual de US $ 1,5 milhão em equipamentos de teste.

• Pessoal de controle de qualidade: 38 profissionais
• Investimento anual de equipamentos de teste: US $ 1,5 milhão
• Certificações de teste: ISO 9001: 2015 Compatiante

Marketing e vendas de produtos têxteis

O orçamento de marketing para o ano fiscal de 2023 foi de US $ 3,8 milhões com uma equipe de vendas de 52 profissionais.

Canal de vendas	Contribuição da receita	Alocação da equipe de vendas
Mercado doméstico	62% da receita total	32 profissionais de vendas
Mercado internacional	38% da receita total	20 profissionais de vendas

Culp, Inc. (CULP) - Modelo de negócios: Recursos -chave

Instalações de fabricação têxtil especializadas

A Culp, Inc. opera instalações de fabricação localizadas em:

• Newton, Carolina do Norte (sede)
• Stokesdale, Carolina do Norte
• Locais globais de fabricação

Tipo de instalação	Mágua quadrada total	Capacidade de produção
Instalação de tecido de colchão	275.000 pés quadrados.	Aproximadamente 50 milhões de jardas anualmente
Instalação de tecido de estofamento	220.000 pés quadrados.	Aproximadamente 35 milhões de jardas anualmente

Tecnologia proprietária de tecidos e recursos de design

A partir do ano fiscal de 2023, a Culp, Inc. investiu US $ 2,3 milhões em pesquisa e desenvolvimento.

• Tecnologias avançadas de engenharia de tecidos
• Soluções inovadoras de tecido de desempenho
• Desenvolvimento têxtil sustentável

Força de trabalho qualificada em engenharia têxtil

Categoria de funcionários	Total de funcionários	Profissionais de engenharia
Força de trabalho total	1,400	175 especialistas em engenharia têxtil

Propriedade intelectual e patentes de design

Culp, Inc. mantém 12 patentes de design ativo e 8 Registros de tecnologia têxtil proprietários.

Infraestrutura de pesquisa e desenvolvimento

Investimento em P&D	Áreas de foco de inovação	Orçamento anual de P&D
3,2% da receita anual	Tecidos de desempenho, sustentabilidade	US $ 2,3 milhões (2023)

Culp, Inc. (CULP) - Modelo de negócios: proposições de valor

Soluções têxteis de alto desempenho para indústrias de colchão e móveis

A partir do terceiro trimestre de 2023, a Culp, Inc. registrou vendas líquidas de US $ 73,7 milhões no segmento de tecidos de colchão e US $ 35,5 milhões no segmento de tecidos de estofamento.

Categoria de produto	Vendas líquidas (terceiro trimestre 2023)	Estimativa de participação de mercado
Tecidos de colchão	US $ 73,7 milhões	Aproximadamente 12-15%
Tecidos de estofamento	US $ 35,5 milhões	Aproximadamente 8-10%

Tecnologias de tecido inovador e sustentável

A Culp investiu US $ 2,3 milhões em pesquisa e desenvolvimento para tecnologias têxteis sustentáveis ​​no ano fiscal de 2023.

• Composições de tecido ecológicas
• Integração de material reciclado
• Processos de fabricação de baixo lixo

Qualidade premium e durabilidade em produtos têxteis

A CULP mantém um padrão de controle de qualidade com taxa de retorno de menos de 1,5% nas linhas de produtos têxteis.

Métrica de qualidade	Desempenho
Taxa de retorno do produto	Menos de 1,5%
Teste de durabilidade do tecido	Excede o padrão da indústria em 25%

Designs de tecido personalizáveis ​​para diversas necessidades de clientes

Em 2023, a Culp ofereceu mais de 500 variações exclusivas de design de tecido nos segmentos de colchão e estofamento.

• Opções de personalização de cores
• Recursos de variação de textura
• Designs de tecidos específicos de desempenho

Fabricação têxtil econômica e eficiente

A eficiência de fabricação da CULP resultou em uma margem bruta de 28,1% no ano fiscal de 2023, com reduções de custos operacionais de aproximadamente 4,2%.

Métrica financeira	Valor
Margem bruta	28.1%
Redução de custos operacionais	4.2%
Utilização da capacidade de fabricação	87%

Culp, Inc. (CULP) - Modelo de negócios: relacionamentos com o cliente

Vendas diretas e gerenciamento de contas

A partir do ano fiscal de 2024, a Culp, Inc. mantém uma equipe de vendas dedicada segmentação:

• Fabricantes de colchões
• Fabricantes de móveis
• Clientes diretos de mobiliário doméstico

Canal de vendas	Contribuição anual da receita
Vendas de tecido de colchão	US $ 127,3 milhões
Vendas de tecido de estofamento	US $ 98,6 milhões

Suporte técnico e consulta

Culp fornece suporte técnico especializado por meio de:

• Gerentes de conta dedicados
• Consulta técnica no local
• Plataformas de suporte digital

Abordagem de parceria de longo prazo

Duração média do relacionamento do cliente: 7,2 anos

Categoria de cliente	Taxa de retenção
Fabricantes de Nível 1	92.5%
Fabricantes de tamanho médio	85.3%

Desenvolvimento de produtos colaborativos

Investimento anual em P&D colaborativo: US $ 3,2 milhões

• Programas de design de tecidos personalizados
• Oficinas de inovação materiais
• Iniciativas de sustentabilidade conjunta

Modelo de serviço centrado no cliente

Métricas de atendimento ao cliente:

Métrica de serviço	Desempenho
Tempo de resposta	Abaixo de 4 horas
Pontuação de satisfação do cliente	4.7/5.0

Culp, Inc. (Culp) - Modelo de Negócios: Canais

Equipe de vendas diretas

A Culp, Inc. relatou 253 funcionários totais no ano fiscal de 2023, com representantes de vendas dedicados direcionados a segmentos de mercado específicos.

Canal de vendas	Número de representantes	Mercado -alvo
Divisão de Mobiliários para Casa	37	Fabricantes de móveis
Divisão de tecidos de colchão	29	Produtores de colchão

Feiras e exposições da indústria

A Culp, Inc. participa de eventos importantes da indústria com gastos anuais de exposição de US $ 412.000 no ano fiscal de 2023.

• Show International Home + Housewares
• Mercado de pontos altos
• ISPA Expo

Catálogos de produtos on -line

As plataformas de catálogo digital geraram aproximadamente US $ 8,3 milhões em envolvimento de produtos on -line em 2023.

Plataforma digital	Valor anual de engajamento
Site da empresa	US $ 4,1 milhões
Catálogos digitais B2B	US $ 4,2 milhões

Redes representativas do fabricante

A Culp, Inc. mantém 47 relações representativas externas do fabricante na América do Norte e na Europa.

Plataformas de marketing digital

As despesas de marketing digital totalizaram US $ 621.000 no ano fiscal de 2023, com foco nos canais direcionados de design industrial e de interiores.

Canal de marketing digital	Gastos anuais
Publicidade do LinkedIn	$187,000
Plataformas da Web específicas do setor	$276,000
Google anúncios	$158,000

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

Fabricantes de colchões

A partir do terceiro trimestre de 2023, Culp atende a aproximadamente 25 a 30 fabricantes de colchões na América do Norte. Os detalhes do segmento -chave incluem:

Tipo de cliente	Quota de mercado	Contribuição anual da receita
Fabricantes de colchões de primeira linha	60%	US $ 42,3 milhões
Fabricantes de colchões de tamanho médio	30%	US $ 21,1 milhões
Marcas emergentes de colchões	10%	US $ 7,5 milhões

Empresas de móveis

Culp suporta aproximadamente 40-45 empresas de móveis com soluções têxteis:

• Suprimento de tecido de estofamento
• Desenvolvimento têxtil de desempenho
• Serviços de design personalizado

Marcas de móveis para casa

A base de clientes inclui 15-20 marcas nacionais e regionais de móveis com compras têxteis anuais que variam de US $ 500.000 a US $ 3,5 milhões.

Indústria de hospitalidade

Segmento de hospitalidade	Número de clientes	Volume de aquisição têxtil
Correntes de hotéis	12	US $ 18,7 milhões
Propriedades do resort	8	US $ 9,2 milhões

Mercados têxteis residenciais e comerciais

Redução de segmentação de mercado:

• Mercado residencial: 65% da receita têxtil
• Mercado Comercial: 35% da Receita Têxtil

Segmento de mercado	Receita anual	Taxa de crescimento
Têxteis residenciais	US $ 97,5 milhões	3.2%
Têxteis comerciais	US $ 52,3 milhões	2.8%

Culp, Inc. (CULP) - Modelo de negócios: estrutura de custos

Despesas de fabricação e produção

Para o ano fiscal de 2023, a Culp, Inc. registrou despesas totais de fabricação de US $ 204,6 milhões. A quebra de custos de produção da empresa inclui:

Categoria de despesa	Valor ($)
Custos diretos de mão -de -obra	68,5 milhões
Custos de matéria -prima	89,3 milhões
Manufatura de sobrecarga	46,8 milhões

Investimentos de pesquisa e desenvolvimento

A Culp, Inc. alocou US $ 7,2 milhões às despesas de pesquisa e desenvolvimento no ano fiscal de 2023, representando 2,1% da receita total.

Custos de mão -de -obra e força de trabalho

As despesas totais relacionadas à força de trabalho para a empresa em 2023 foram:

• Compensação total dos funcionários: US $ 92,3 milhões
• Benefícios e impostos sobre a folha de pagamento: US $ 18,6 milhões
• Número médio de funcionários: 1.250

Aquisição de matéria -prima

Custos de aquisição de matéria -prima para Culp, Inc. em 2023:

Tipo de material	Custo anual ($)
Materiais têxteis	62,7 milhões
Componentes de espuma	26,9 milhões
Tecidos especiais	15,4 milhões

Despesas de marketing e vendas

Despesas de marketing e vendas para o ano fiscal de 2023:

• Gastes de marketing total: US $ 15,3 milhões
• Comissão de Vendas e Incentivos: US $ 6,8 milhões
• Publicidade e custos promocionais: US $ 4,5 milhões

Custos operacionais totais: US $ 226,1 milhões

Culp, Inc. (CULP) - Modelo de negócios: fluxos de receita

Vendas de tecidos de tecido para fabricantes de colchões

Para o ano fiscal de 2023, a Culp, Inc. reportou vendas líquidas totais de US $ 233,4 milhões. A receita do segmento de móveis para casa foi de US $ 180,4 milhões, com vendas de tecidos de colchão representando uma parcela significativa.

Ano fiscal	Vendas líquidas totais	Receita do segmento de móveis para casa
2023	US $ 233,4 milhões	US $ 180,4 milhões

Linhas de produto de tecido de desempenho

As linhas de produtos de tecido de desempenho geraram aproximadamente US $ 53 milhões em receita para o ano fiscal de 2023.

• Tecidos de desempenho direcionados aos mercados de saúde e hospitalidade
• Tecnologias têxteis que ganham umidade e antimicrobianos

Contratos de design e desenvolvimento personalizados

Os contratos de design personalizado contribuíram com aproximadamente 15% da receita total, estimada em US $ 35 milhões no ano fiscal de 2023.

Licenciamento de tecnologias têxteis

A receita de licenciamento para inovações têxteis foi de aproximadamente US $ 5,2 milhões no ano fiscal de 2023.

Vendas de mercado têxteis internacionais e domésticas

Mercado	Receita	Porcentagem de vendas totais
Mercado doméstico	US $ 178,2 milhões	76.4%
Mercado internacional	US $ 55,2 milhões	23.6%

Principal de receita para o ano fiscal de 2023:

• Vendas de tecido de colchão: US $ 125,6 milhões
• Tecidos de desempenho: US $ 53 milhões
• Contratos de design personalizado: US $ 35 milhões
• Licenciamento de tecnologia têxtil: US $ 5,2 milhões

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.