Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 56

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 1
Chunk 56
---

    $
    6,122

    (30.9)%

    Gross margin

    17.9
    %

    20.1
    %
     
    (220)bp

    Selling, general, and administrative expenses

    3,549

    4,030

    (11.9)%

    Restructuring expense (credit)

    8

    (50
    )
     
    N.M.

    Income from operations

    679

    2,092

    (67.5)%

    Operating margin

    2.9
    %

    6.9
    %
     
    (400)bp

    Nine Months Ended

    (dollars in thousands)
     
    January 26,2025

    January 28,2024

    Change

    Gross profit
     
    $
    14,061

    $
    16,780

    (16.2)%

    Gross margin

    18.1
    %

    19.7
    %
     
    (160)bp

    Selling, general, and administrative expenses

    11,056

    11,969

    (7.6)%

    Restructuring expense

    169

    432

    (60.9)%

    Income from operations

    3,005

    4,811

    (37.5)%

    Operating margin

    3.9
    %

    5.6
    %
     
    (170)bp

Income from operations was $679,000 for the third quarter of fiscal 2025, compared to $2.1 million for the third quarter of fiscal 2024. Income from operations was $3.0 million for the first nine months of fiscal 2025, compared to income from operations of $4.8 million for the first nine months of fiscal 2024.

The declines in upholstery fabrics profitability for the third quarter and the first nine months of fiscal 2025, as compared to the prior-year periods, primarily reflect lower sales, which were offset somewhat by lower SG&A expense and lower fixed costs during both periods. However, the actions we completed during the first quarter of fiscal 2025 to restructure our upholstery fabrics finishing operation in China and optimize our Asian platform continue to positively impact our operating performance (see “—Restructuring Activities—Sh