Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 139

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 8
Chunk 139
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3,887
        )
         
        $
        (1,740
        )

              Interest expense

        (63
        )

        —

        Interest income

        255

        284

        Other income (expense)

        15

        (705
        )

        Loss before income taxes
         
        $
        (3,680
        )
         
        $
        (2,161
        )
       
        (1) During the three months ended January 26, 2025, gross profit includes restructuring related charges totaling $624,000 for losses on the disposal and valuation of inventory related to the gradual discontinuation of operations at our manufacturing facility located in Quebec, Canada. (2) During the three months ended January 28, 2024, gross profit includes a restructuring related credit of $61,000 for the gain on disposal of inventory related to the discontinuation of production of cut and sewn upholstery kits at the company's facility located in Ouanaminthe, Haiti.  (3) During the three months ended January 26, 2025, restructuring expense of $1.7 million mostly relates to the mattress fabrics segment. The $1.7 million restructuring expense represents (i) $1.5 million for the consolidation of our mattress fabrics operations located in Quebec, Canada into our facility located in Stokesdale, North Carolina and (ii) $176,000 for employee termination benefits, partially offset by (iii) a net gain of $(33,000) for the impairment and sale of equipment. See Note 10 to the consolidated financial statements for further details and description of our Fiscal 2025 Restructuring Plan. (4)The restructuring credit of $50,000 for the three months ended January 28, 2024, represents a gain on the sale of equipment related to the discontinuation of production of cut and sewn upholstery kits in Ouanaminthe, Haiti. 

I-22

        Nine months ended

        January 26, 2025

        January 28, 2024

        Net sales by segment:

        Mattress fabrics
         
        $
        86,792

        $
        90,619

        Upholstery fabrics

        77,672

        85,185

        Net sales
         
        $
        164,464

        $
        175,804

        Gross profit:

        Mattress fabrics