Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 48

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 1
Chunk 48
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1,647

    —
     
    100.0%

    Loss from operations

    (433
    )
     
    (1,582
    )
    (72.6)%

    Operating margin

    (1.5
    )%
     
    (5.3
    )%
    380bp

    Nine Months Ended

    (dollars in thousands)
     
    January 26,2025
     
    January 28,2024
     
    Change

    Net sales
     
    $
    86,792
     
    $
    90,619
     
    (4.2)%

    Gross profit

    4,862

    5,997
     
    (18.9)%

    Gross profit margin

    5.6
    %
     
    6.6
    %
    (100)bp

    Selling, general, and administrative expenses

    9,880

    9,913
     
    (0.3)%

    Restructuring expense

    6,148

    —
     
    100.0%

    Loss from operations

    (5,018
    )
     
    (3,916
    )
    28.1%

    Operating margin

    (5.8
    )%
     
    (4.3
    )%
    (150)bp

Net Sales

Mattress fabrics sales decreased 4.6% in the third quarter of fiscal 2025 compared to the prior-year period.  Mattress fabrics sales decreased 4.2% in the first nine months of fiscal 2025 compared to the first nine months of fiscal 2024.

The sales declines in the mattress fabrics segment stem primarily from what remains a muted demand environment across the domestic mattress market driven by macroeconomic uncertainty among consumers and its impacts on residential real estate markets and discretionary spending. However, during the quarter we continued to execute on a variety of significant measures designed to align our manufacturing costs and capacity with the slower buying activity evident across the mattress industry. As planned, we completed the vast majority of the restructuring initiatives in our mattress fabrics segment announced earlier in fiscal 2025, including the closure of our Canadian manufacturing operations and related consolidation of equipment and resources.  As a result, we believe we are now better positioned to service customers in the U.S. market through our vertical, textiles