Company: CULP
Filing Date: 2025-08-15
Form Type: DEF 14A
Source: 0000950170-25-109242
Chunk: 88

Company: CULP INC
Filing Date: 2025-08-15
Form: DEF 14A
Chunk 88
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 Quebec, Canada; (ii) consolidating two leased facilities related to the sewn mattress cover operation located in Ouanaminthe, Haiti, into one facility and reducing other operating expenses at this location; (iii) initial costs related to consolidating production and distribution activities from the upholstery fabrics distribution center located in Burlington, North Carolina to the mattress fabrics manufacturing and distribution center located in Stokesdale, North Carolina; and (iv) other expenses incurred as part of the company's strategic plan to transform its operating model as announced on April 24, 2025.

|                                     |     | As Reported 
 2024        | April 28, |   |     | Adjustments |     |     | Adjusted Results 
 2024             | April 28, |   |
|:------------------------------------|:----|:------------|----------:|:--|:----|------------:|----:|:----|:-----------------|----------:|:--|
| Net sales                           |     | $           |   225,333 |   |     |             |   — |     | $                |   225,333 |   |
| Cost of sales (1)                   |     |             |  (197,394 | ) |     |          40 |     |     |                  |  (197,354 | ) |
| Gross profit                        |     |             |    27,939 |   |     |             |  40 |     |                  |    27,979 |   |
| Selling, general and administrative 
 expenses                            |     |             |   (38,611 | ) |     |             |   — |     |                  |   (38,611 | ) |
| Restructuring expense (2)           |     |             |      (636 | ) |     |             | 636 |     |                  |         — |   |
| Loss from operations                |     | $           |   (11,308 | ) |     |             | 676 |     | $                |   (10,632 | ) |

Notes (1) During the twelve months ended April 28, 2024, cost of sales included a restructuring related charge of $40,000 for markdowns of inventory related to the discontinuance of production of cut and sewn upholstery kits at the company's facility in Ouanaminthe, Haiti. (2) During the twelve months ended April 28, 2024, restructuring expense of $