# EDGAR Filing Document

**Accession Number:** 0000723603
**File Stem:** 0000950170-25-089974
**Filing Date:** 2025-6
**Character Count:** 110192
**Document Hash:** e996027610e55c928e34c934bc29cc01
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-089974.hdr.sgml**: 20250625

**ACCESSION NUMBER**: 0000950170-25-089974

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 22

**CONFORMED PERIOD OF REPORT**: 20250625

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250625

**DATE AS OF CHANGE**: 20250625

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CULP INC
- **CENTRAL INDEX KEY:** 0000723603
- **STANDARD INDUSTRIAL CLASSIFICATION:** BROADWOVEN FABRIC MILLS, COTTON [2211]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 561001967
- **STATE OF INCORPORATION:** NC
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-12597
- **FILM NUMBER:** 251073947

**BUSINESS ADDRESS:**
- **STREET 1:** 410 W. ENGLISH ROAD 5TH FLOOR
- **CITY:** HIGH POINT
- **STATE:** NC
- **ZIP:** 27262
- **BUSINESS PHONE:** 3368895161

**MAIL ADDRESS:**
- **STREET 1:** 410 W. ENGLISH ROAD 5TH FLOOR
- **CITY:** HIGH POINT
- **STATE:** NC
- **ZIP:** 27262

?xml version='1.0' encoding='ASCII'? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549**

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## **FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** June 25, 2025<br>

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Culp, Inc.

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| North Carolina | 1-12597 | 56-1001967 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 410 W. Engish Rd 5th Floor |  |  |
| High Point**,** North Carolina |  | 27262 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

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**Registrant's Telephone Number, Including Area Code:** 336 889-5161<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common stock, par value $0.05 per share | CULP | The New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**This report and the exhibits attached hereto contain "forward-looking statements" within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934). Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements. Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often but not always characterized by qualifying words such as "expect," "believe," "will," "may," "should," "could," "potential," "continue," "target," "predict", "seek," "anticipate," "estimate," "intend," "plan," "project," and their derivatives, and include but are not limited to statements about expectations, projections, or trends for our future operations, strategic initiatives and plans, restructuring actions, production levels, new product launches, sales, profit margins, profitability, operating (loss) income, capital expenditures, working capital levels, cost savings (including, without limitation, anticipated cost savings from restructuring actions), income taxes, SG&A or other expenses, pre-tax (loss) income, earnings, cash flow, and other performance or liquidity measures, as well as any statements regarding dividends, share repurchases, liquidity, use of cash and cash requirements, ending cash balances and cash positions, borrowing capacity, investments, potential acquisitions, cash and non-cash restructuring and restructuring-related charges, expenses, and/or credits, net proceeds from restructuring related asset dispositions, future economic or industry trends, public health epidemics, or future developments. There can be no assurance that we will realize these expectations or meet our guidance, or that these beliefs will prove correct.** 

**Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, demand for home furnishings products, consumer confidence, trends in disposable income, and general economic conditions. Decreases in these economic indicators could have a negative effect on our business and prospects. Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect us adversely. The future performance of our business depends in part on our success in conducting and finalizing acquisition negotiations and integrating acquired businesses into our existing operations. Changes in consumer tastes or preferences toward products not produced by us could erode demand for our products. Changes in tariffs or trade policy, including changes in U.S. trade enforcement priorities, or changes in the value of the U.S. dollar versus other currencies, could affect our financial results because a significant portion of our operations are located outside the United States. Strengthening of the U.S. dollar against other currencies could make our products less competitive on the basis of price in markets outside the United States, and strengthening of currency in China can have a negative impact on our sales of products produced there. In addition, because our foreign operations use the U.S. dollar as their functional currency, changes in the exchange rate between the local currency of those operations and the U.S dollar can affect our reported profits from those foreign operations. Also, economic or political instability in international areas could affect our operations or sources of goods in those areas, as well as demand for our products in international markets. The impact of public health epidemics on employees, customers, suppliers, and the global economy, such as the coronavirus pandemic, could also adversely affect our operations and financial performance. In addition, the impact of potential asset impairments, including impairments of property, plant, and equipment, inventory, or intangible assets, as well as the impact of valuation allowances applied against our net deferred income tax assets, could affect our financial results. Increases in freight costs, labor costs, and raw material prices, including increases in market prices for petrochemical products, can also significantly affect the prices we pay for shipping, labor, and raw materials, respectively, and in turn, increase our operating costs and decrease our profitability. Also, our success in diversifying our supply chain with reliable partners to effectively service our global platform could affect our operations and adversely affect our financial results. Finally, the future performance of our business also depends on our ability to successfully restructure our mattress fabric operations and return the segment to profitability as well as successfully integrate our mattress fabric and upholstery fabric divisions, neither of which may meet our expectations. Further information about these factors, as well as other factors that could affect our future operations or financial results and the matters discussed in forward-looking statements, is included in Item 1A "Risk Factors" in our most recent Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission.** 

**Many of these factors are macroeconomic in nature and are, therefore, beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in this report and the exhibits attached hereto as anticipated, believed, estimated, expected, intended, planned or projected. The forward-looking statements included in this report and the exhibits attached hereto are made only as of the date of of this report. Unless required by United States federal securities laws, we neither intend nor assume any obligation to update these forward-looking statements for any reason after the date of this report to conform these statements to** 

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**actual results or to changes in our expectations. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations or financial results.**

## **Item 2.02 Results of Operations and Financial Condition.** 
On June 25, 2025, we issued a news release to announce our financial results for our fourth quarter and fiscal year ended April 27, 2025. A copy of the news release is attached hereto as Exhibit 99.1.

The information set forth in this Item 2.02 of this Current Report, and in Exhibit 99.1, is intended to be "furnished" under Item 2.02 of Form 8-K. Such information shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

The news release contains adjusted income statement information for the three and 12 month periods ended April 27, 2025, and April 28, 2024, respectively, which disclose adjusted loss from operations, a non-U.S. GAAP performance measure that eliminates items which are not expected to occur on a recurring or regular basis. For the three and 12 month periods ended April 27, 2025, and April 28, 2024, these items include, as applicable for the period presented, restructuring related charges and restructuring expense associated with the gradual discontinuation of the mattress fabrics manufacturing operations in Quebec, Canada, the process of selling the facility located in Quebec, Canada, and the relocation of certain equipment from Quebec, Canada, to Stokesdale, North Carolina; restructuring expense associated with consolidation of the mattress fabrics sewn cover operation in Haiti from two buildings into one building; restructuring expense associated with moving equipment from our upholstery fabrics operation located in Knoxville, Tennessee, to our upholstery fabrics distribution center located in Burlington, North Carolina; and restructuring expense associated with the rationalization of the upholstery fabrics finishing operation located in Shanghai, China. For the three and 12 month periods ended April 27, 2025, these items include, as applicable for the period presented, restructuring-related credits, restructuring related charges, and restructuring expense associated with the discontinued production of cut and sewn upholstery kits in Ouanaminthe, Haiti. The company has included this adjusted information in order to show operational performance excluding the effects of items not expected to occur on a recurring or regular basis. Details of these calculations and a reconciliation to information from our U.S. GAAP financial statements are set forth in the news release. Management believes this presentation aids in the comparison of financial results among comparable financial periods. Management uses adjusted income statement information in evaluating the financial performance of our overall operations and business segments. Also, adjusted income statement information is used as a performance measure in our incentive-based executive compensation program. We note, however, that this adjusted income statement information should not be viewed in isolation or as a substitute for loss from operations calculated in accordance with U.S. GAAP.

The news release contains disclosures about our net debt, which is a non-U.S. GAAP liquidity measure that we define as cash and cash equivalents (which we sometimes refer to as "cash") plus investments that are available to fund operations minus the total amount of outstanding borrowings under our lines of credit or other debt instruments. Details of these calculations and a reconciliation to information from our U.S. GAAP financial statements are set forth in the news release. We believe this non-GAAP measure is useful to investors as it provides a way to compare our cash or debt position across periods on a consistent basis, regardless of the impact of financing activities. Net debt should not be viewed in isolation by investors and should not be used as a substitute for GAAP measures of liquidity.

The news release contains disclosures about free cash flow, a non-U.S. GAAP liquidity measure that we define as net cash (used in) provided by operating activities, less cash capital expenditures and any payments on vendor-financed capital expenditures, plus any proceeds from sale of property, plant, and equipment, plus proceeds from note receivable, plus proceeds from the sale of investments associated with our rabbi trust, less the purchase of investments associated with our rabbi trust, and plus or minus the effects of foreign currency exchange rate changes on cash and cash equivalents, in each case to the extent any such amount is incurred during the period presented. Details of these calculations and a reconciliation to information from our U.S. GAAP financial statements are set forth in the news release. Management believes the disclosure of free cash flow provides useful information to investors because it measures our available cash flow for potential debt repayment, stock repurchases, dividends, additions to cash and investments, or other corporate purposes. We note, however, that not all of the company's free cash flow is available for discretionary spending, as we may have mandatory debt payments and other cash requirements that must be deducted from our cash available for future use. In operating our business, management uses free cash flow to make decisions about what commitments of cash to make for operations, such as capital expenditures (and possible financing arrangements for these expenditures), purchases of inventory or supplies, SG&A expenditure levels, compensation,

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and other commitments of cash, while still allowing for adequate cash to meet known future commitments for cash, such as debt repayment, and also for making decisions about dividend payments and share repurchases.

The news release contains disclosures about our adjusted EBITDA, which is a non-U.S. GAAP performance measure that reflects net (loss) income excluding income tax expense (benefit), net interest income, and restructuring expense or credit and restructuring related charges or credits, as well as depreciation and amortization expense, and stock-based compensation expense. This measure also excludes other non-recurring charges and credits associated with our business, if and to the extent any such amount is incurred during the period presented. Details of these calculations and a reconciliation to information from our U.S. GAAP financial statements are set forth in the news release. We believe presentation of adjusted EBITDA is useful to investors because earnings before interest income and expense, income taxes, depreciation and amortization, and similar performance measures that exclude certain charges from earnings, are often used by investors and financial analysts in evaluating and comparing companies in our industry. We note, however, that such measures are not defined uniformly by various companies, with differing expenses being excluded from net income to calculate these performance measures. For this reason, adjusted EBITDA should not be viewed in isolation by investors and should not be used as a substitute for net income (loss) calculated in accordance with GAAP, nor should it be used for direct comparisons with similarly titled performance measures reported by other companies. Use of adjusted EBITDA as an analytical tool has limitations in that this measure does not reflect all expenses that are necessary to fund and operate our business, including funds required to pay taxes, service our debt, and fund capital expenditures, among others. Management uses adjusted EBITDA to help it analyze the company's earnings and operating performance, by excluding the effects of expenses that depend upon capital structure and debt level, tax provisions, and non-cash items such as depreciation, amortization and stock-based compensation expense that do not require immediate uses of cash.

The news release contains disclosures about return on capital employed for both the entire company and for individual business segments. We define return on capital employed as adjusted operating income (loss) (measured on a trailing 12-month basis) divided by average capital employed (excluding intangible assets related to acquisitions at the divisional level only). Adjusted operating income (loss) excludes certain charges or credits that are not expected to occur on a recurring or regular basis, if applicable for the period presented. Average capital employed is calculated over rolling five fiscal periods, depending on which quarter is being presented. Details of these calculations and a reconciliation to information from our U.S. GAAP financial statements are set forth in the news release. We believe return on capital employed is an accepted measure of earnings efficiency in relation to capital employed, but it is a non-U.S. GAAP performance measure that is not defined or calculated in the same manner by all companies. This measure should not be considered in isolation or as an alternative to net income (loss) or other performance measures, but we believe it provides useful information to investors by comparing the adjusted operating income (loss) we produce to the net asset base used to generate that income (loss). Also, adjusted operating income (loss) on a trailing 12-months basis does not necessarily indicate results that would be expected for the full fiscal year or for the following 12 months. We note that, particularly for return on capital employed measured at the segment level, not all assets and expenses are allocated to our operating segments, and there are assets and expenses at the corporate (unallocated) level that may provide support to a segment's operations and yet are not included in the assets and expenses used to calculate that segment's return on capital. Thus, the average return on capital employed for the company's segments will generally be different from the company's overall return on capital employed. Management uses return on capital employed to evaluate the company's earnings efficiency and the relative performance of its segments.

## **Item 7.01 Regulation FD Disclosure.** 
On June 25, 2025, we posted a restructuring presentation to our website at https://culpinc.gcs-web.com/ (the "Restructuring Presentation"). A copy of the Restructuring Presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated into this Item 7.01 by reference. We expect to use the Restructuring Presentation from time to time, in whole or in part, and possibly with modifications, in connection with presentations to investors, analysts, and others.

The information contained in the Restructuring Presentation is summary information that should be considered within the context of the company's filings with the Securities and Exchange Commission ("SEC") and other public announcements the company may make by press release or otherwise from time to time. The Restructuring Presentation speaks only as of the date of this Current Report on Form 8-K. We undertake no duty or obligation to publicly update or revise the information contained in the Restructuring Presentation, including, without limitation, any targets, estimates, goals, or other forward-looking statements, although we may do so from time to time. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases, or through other public disclosure.

The Restructuring Presentation contains statements intended as "forward-looking statements" that are subject to the cautionary statements about forward-looking statements set forth on page 2 of the Restructuring Presentation. By

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furnishing the information contained in this Current Report on Form 8-K, including Exhibit 99.2, we make no admission as to the materiality of any such information.

The information in this Current Report on Form 8-K, including Exhibit 99.2, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference to such filing.

## **Item 9.01 Financial Statements and Exhibits.** 
**EXHIBIT INDEX**

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| | |
|:---|:---|
| **Exhibit Number** | **Exhibit** |
| 99.1 | [<u>News Release dated June 25, 2025</u>](culp-ex99_1.htm) |
| 99.2 | [<u>Restructuring Presentation</u>](culp-ex99_2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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**SIGNATURES**

**Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.**

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| | |
|:---|:---|
| **CULP, INC.**<br>**(Registrant)** | **CULP, INC.**<br>**(Registrant)** |
| **By:** | **/s/ Kenneth R. Bowling** |
|  | **Chief Financial Officer** |
|  | **(principal financial officer)** |

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**<u>Dated June 25, 2025</u>**

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## Exhibit 99.1

**Exhibit 99.1**

![img29555247_0.jpg](img29555247_0.jpg)

**CULP ANNOUNCES FOURTH QUARTER AND FULL YEAR FISCAL 2025 RESULTS** 

**Completed Restructuring Provides Foundation for Improved Operating Performance** 

**in Fiscal 2026** 

**HIGH POINT, N.C. (June 25, 2025)** – Culp, Inc. (NYSE: CULP), a leading provider of fabrics for bedding and upholstery fabrics for residential and commercial furniture, today reported financial and operating results for the fourth quarter and fiscal year ended April 27, 2025.

Iv Culp, President and Chief Executive Officer, commented, "Fiscal 2025 was a year of heavy lifting across CULP, and we are encouraged by the results of our work to transform our cost structure and better position the company for growth. Given the challenging revenue environment and tariff-related uncertainty that is evident and continues across the industry, we concentrated on what we can control and successfully executed on a variety of aggressive initiatives that should drive better operating leverage, particularly as market conditions improve. We also continued to play to our strength in providing the highest levels of service, product offerings and supply chain optionality to our customers, and we believe that our market share remains strong and continues to expand within certain targeted segments.

"The recent sale of our manufacturing facility in Canada capped the completion of the restructuring plan we announced last year including facility closures and consolidations in our mattress fabrics division, as well as a transition to an asset-light, strategic sourcing model for certain major product lines. We are pleased to see the benefits of that plan reflected in our financial results, with a lower fixed cost base and increased efficiencies in our mattress fabrics division helping to drive improvement during the year and significantly better overall operating results for the quarter despite the pressured macro conditions.

"In light of the continuing market softness, along with heightened tariff uncertainty, we are taking additional action including the integration of our two operating divisions, Culp Upholstery Fabrics and Culp Home Fashions, into a unified CULP-branded business that enhances our ability to anticipate and react to market trends as well as optimize resources across our organization. We expect this more centralized approach to improve scale efficiencies throughout CULP and to generate additional savings as we progress through fiscal 2026. In addition, the related facility consolidation activity should elevate the operating profile of our upholstery fabrics business, which continues to achieve profitability in the face of historically low demand for home furnishings and challenges from high tariff rates on China-produced goods. We also recently extended our credit facility with Wells Fargo for an additional three years, which we believe will provide us with additional flexibility and liquidity as needed to fund and grow our business going forward.

Mr. Culp concluded, "I remain incredibly proud of our team's ability to respond to the changing needs of our business. Thanks to their hard work and dedication, we move into our new fiscal

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

year with a leaner, more flexible global platform enabling us to quickly respond to market and tariff fluidity, as well as a highly resilient business model well-positioned to seize opportunities and meet the challenges ahead."

**Fiscal 2025 Fourth Quarter Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;▪ Consolidated net sales of $48.8 million, generally flat to prior-year period net sales of $49.5 million, with mattress fabric sales up 5.3 percent and upholstery fabric sales down 8.9 percent year-over-year.

▪ GAAP consolidated loss from operations of $(2.2) million (including $1.5 million in restructuring and related expenses), compared with GAAP consolidated loss from operations of $(4.2) million (including $204,000 in restructuring expense during the period).

&nbsp;&nbsp;&nbsp;&nbsp;•Non-GAAP operating loss of $(704) thousand, a marked improvement over the prior-year period's non-GAAP operating loss of $(4.0) million (see reconciliation table on page 16) driven primarily by cost and efficiency benefits from the restructuring plan and also favorably impacted by lower inventory markdowns.

&nbsp;&nbsp;&nbsp;&nbsp;•Continued momentum in mattress fabrics operating performance, including significant improvement in operating loss from the prior-year period and consistent improvement throughout the year.

&nbsp;&nbsp;&nbsp;&nbsp;•Continued profitability in the upholstery fabrics segment despite a low-revenue industry environment and tariff-related challenges.

▪ Net loss of $(2.1) million (including $1.5 million in restructuring and related expenses), or $(.17) per diluted share, compared to a net loss of $(4.9) million, or $(.39) per diluted share, in the prior-year period.

&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted EBITDA for the period was $559 thousand, compared to negative $(2.2) million in the prior-year period (see reconciliation table on page 20), with the improvement driven primarily by restructuring activities and also favorably impacted by lower inventory markdowns.

**Fiscal 2025 Full Year Financial Highlights**

▪ Consolidated net sales of $213.2 million, down 5.4 percent from the prior year, with mattress fabric sales down 2.1 percent and upholstery fabric sales down 8.8 percent.

▪ GAAP consolidated loss from operations of $(18.4) million (including $9.4 million in restructuring and related expenses), compared with GAAP consolidated loss from operations of $(11.3) million (including $676,000 in restructuring and related expenses during the period).

&nbsp;&nbsp;&nbsp;&nbsp;•Non-GAAP operating loss of $(9.0) million, an improvement over the prior-year period's non-GAAP operating loss of $(10.6) million (see reconciliation table on page 17) driven primarily by the same dynamics driving the improvement in non-GAAP operating loss during the fourth quarter.

▪ Net loss of $(19.1) million (including $9.4 million in restructuring and related expenses), or $(1.53) per diluted share, compared with a net loss of $(13.8) million, or $(1.11) per diluted share, for the prior year.

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

▪ As of April 27, 2025, the Company maintained $5.6 million in total cash and $12.7 million in outstanding debt under its credit facilities.

**Restructuring Plan Update**

The restructuring plan announced in May of 2024, which was primarily focused within the Company's mattress fabrics business, was completed as planned, with the sale of the Company's manufacturing facility in Quebec, Canada, consummated on April 30, 2025. The Company continues to expect the restructuring plan to generate $10.0-$11.0 million in annualized savings and operating improvements, with many of these benefits already beginning to manifest in the Company's fourth quarter fiscal 2025 results.

The Company incurred total restructuring and restructuring-related expenses of $9.4 million in fiscal 2025, of which $5.6 million consisted of cash expenditures. The Company funded close to $2.3 million of these cash expenditures with proceeds from the sale of excess manufacturing equipment, proceeds from a building lease termination in Haiti, and a small portion of the proceeds from the sale of its Canada facility. In fiscal 2026, the Company expects to realize a total of approximately $3.0 to $3.5 million in cash proceeds, net of all taxes and commissions, on the sale of its Canada facility.

**Business Segment Highlights**

*Mattress Fabrics Segment*

&nbsp;&nbsp;&nbsp;&nbsp;▪ Sales for this segment were $27.1 million for the fourth quarter, up 5.3 percent compared with sales of $25.8 million in the prior-year period. Sales continued to be pressured by industry-wide low demand and related challenges from weaker consumer spending and housing market trends, but the Company continues to win new business with larger customers.

&nbsp;&nbsp;&nbsp;&nbsp;▪ Operating loss was $(217) thousand for the fourth quarter, compared to an operating loss of $(2.9) million in the prior-year period, with the improvement driven primarily by higher gross margins attributable to lower fixed costs and operating efficiency improvements derived from the restructuring plan and lower inventory markdowns.

▪ For the full year, sales were $113.9 million, down 2.1 percent compared with sales of $116.4 million for fiscal 2024, with the decrease driven by the above-referenced weak industry conditions and related macro-economic challenges.

▪ For the full year, operating loss was $(5.2) million, compared with an operating loss of ($6.8) million for fiscal 2024. Operating performance continued to be pressured by lower sales, but improved consistently during the year, with the improvement driven primarily by the same dynamics impacting the segment's operating performance for the fourth quarter.

*Upholstery Fabrics Segment*

▪ Sales for this segment were $21.7 million for the fourth quarter, down 8.9 percent compared

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

with sales of $23.8 million in the prior-year period. The year-over-year decline was driven primarily by continued softness in the home furnishings market and lower comparable sales to a large residential fabric customer that uniquely concentrated more of its annual purchasing in the first half of fiscal 2025 and strategically managed inventory levels in the back half of the year. The market uncertainty from the recent tariff-related actions and the timing of the Chinese New Year holiday (which predominantly affected only the fourth quarter rather than multiple periods) also contributed to lower sales. However, demand with hospitality/contract customers remained relatively solid during the quarter, with sales in that market accounting for approximately 42.0 percent of the segment's total sales.

&nbsp;&nbsp;&nbsp;&nbsp;▪ Operating income was $1.1 million for the fourth quarter, compared with operating income of $975 thousand in the prior-year period. Operating performance continued to be pressured by lower sales, but that pressure was partially offset by lower inventory markdowns, a more favorable mix of higher-margin hospitality/contract sales, and lower SG&A expenses.

▪ For the full year, sales were $99.3 million, down 8.8 percent compared with sales of $109.0 million for fiscal 2024, with the decrease primarily reflecting the ongoing demand deterioration in the home furnishings industry due to what remains a challenging macro-economic environment.

▪ For the full year, operating income was $4.1 million, compared to operating income of $5.8 million for fiscal 2024, with the decline driven primarily by lower sales partially offset by lower inventory markdowns and lower SG&A expenses.

**Balance Sheet, Cash Flow, and Liquidity** 

&nbsp;&nbsp;&nbsp;&nbsp;▪ As of April 27, 2025, the Company maintained $5.6 million in total cash and $12.7 million in outstanding debt under its credit facilities, of which $2.8 million constituted supplier financing. The outstanding debt was primarily incurred for restructuring activities and to fund worldwide working capital.

&nbsp;&nbsp;&nbsp;&nbsp;▪ As of April 27, 2025, the Company maintained approximately $27.0 million in liquidity consisting of $5.6 million in cash and $21.4 million in borrowing availability under its domestic credit facility. On June 12, 2025, the Company extended the term of its domestic credit facility with Wells Fargo Bank for an additional three years and amended it in certain other respects. Subject to borrowing base limitations, this credit facility allows the Company to borrow up to $30 million and contains an accordion feature that could increase that amount by an additional $10 million based on mutual agreement.

&nbsp;&nbsp;&nbsp;&nbsp;▪ Cash flow from operations and free cash flow were negative $(17.7) million and negative $(17.1) million, respectively, for fiscal 2025 (see reconciliation table on page 13), with both primarily affected by operating losses, including $5.6 million in non-recurring cash restructuring charges, and, with respect to free cash flow, planned strategic investments in capital expenditures mostly related to the mattress fabrics segment as we focused on restructuring that business.

&nbsp;&nbsp;&nbsp;&nbsp;▪ Capital expenditures for fiscal 2025 were $2.9 million, down from $3.7 million for fiscal 2024 due to an effort to strategically manage capital and focus on projects targeting operating

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

efficiency and future growth.

**Financial Outlook** 

▪ Due to macro-economic uncertainty and the fluid tariff environment, the Company is not providing specific financial guidance, but only limited annual guidance at this time.

▪ The Company anticipates year-over-year sales growth in its mattress fabrics business and for the sales pressure on the residential side of its upholstery business to continue.

▪ The cost and efficiency benefits of the recently completed restructuring plan are expected to continue to drive meaningful operating improvement as the year progresses, particularly as the Company moves beyond the tariff-related sales and margin pressure impacting the first quarter. In addition, the fiscal 2026 division integration initiative and related facility consolidation activity, along with tariff-related price increases, should further bolster operating performance, particularly as the Company progresses beyond the first quarter.

▪ While the Company intends to continue utilizing borrowings as necessary under its domestic and foreign credit facilities during fiscal 2026 in connection with funding working capital needs and growth, integration and efficiency initiatives, it will continue to aggressively manage liquidity and capital expenditures and prioritize free cash flow.

▪ The Company's expectations are based on information available at the time of this press release and reflect certain assumptions by management regarding the Company's business and industry trends, the projected impact of restructuring and integration initiatives, and ongoing tariff and market headwinds. The Company's expectations also assume no further meaningful impacts from tariffs and trade negotiations.

**Conference Call** 

Culp, Inc. will hold a conference call to discuss financial results for the fourth quarter and full fiscal year 2025 on Thursday, June 26, 2025, at 9:00 a.m. Eastern Time. A live webcast of this call can be accessed on the "Upcoming Events" section on the "Investor Relations" page of the Company's website, www.culp.com. A replay of the webcast will be available for 30 days under the "Past Events" section on the "Investor Relations" page of the Company's website.

**About the Company**

Culp, Inc. is one of the largest marketers of mattress fabrics for bedding and upholstery fabrics for residential and commercial furniture in North America. The Company markets a variety of fabrics to its global customer base of leading bedding and furniture companies, including fabrics produced at Culp's manufacturing facilities and fabrics sourced through other suppliers. Culp has manufacturing and sourcing capabilities located in the United States, China, Haiti, Turkey, and Vietnam.

**Investor Relations Contact**

Ken Bowling, Executive Vice President, Chief Financial Officer, and Treasurer:

(336) 881-5630

krbowling@culp.com

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**Forward Looking Statements**

*This release contains "forward-looking statements" within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934). Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements. Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often but not always characterized by qualifying words such as "expect," "believe," "will," "may," "should," "could," "potential," "continue," "target," "predict", "seek," "anticipate," "estimate," "intend," "plan," "project," and their derivatives, and include but are not limited to statements about expectations, projections, or trends for our future operations, strategic initiatives and plans, restructuring and integration actions, production levels, new product launches, sales, profit margins, profitability, operating (loss) income, capital expenditures, working capital levels, cost savings (including, without limitation, anticipated cost savings from restructuring and integration actions), income taxes, SG&A or other expenses, pre-tax (loss) income, earnings, cash flow, and other performance or liquidity measures, as well as any statements regarding dividends, share repurchases, liquidity, use of cash and cash requirements, ending cash balances and cash positions, borrowing capacity, investments, potential acquisitions, cash and non-cash restructuring and restructuring-related charges, expenses, and/or credits, net proceeds from restructuring related asset dispositions, future economic or industry trends, public health epidemics, or future developments. There can be no assurance that we will realize these expectations or meet our guidance, or that these beliefs will prove correct.*

*Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, demand for home furnishings products, consumer confidence, trends in disposable income, and general economic conditions. Decreases in these economic indicators could have a negative effect on our business and prospects. Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect us adversely. The future performance of our business depends in part on our success in conducting and finalizing acquisition negotiations and integrating acquired businesses into our existing operations. Changes in consumer tastes or preferences toward products not produced by us could erode demand for our products. Changes in tariffs or trade policy, including changes in U.S. trade enforcement priorities, or changes in the value of the U.S. dollar versus other currencies, could affect our financial results because a significant portion of our operations are located outside the United States. Strengthening of the U.S. dollar against other currencies could make our products less competitive on the basis of price in markets outside the United States, and strengthening of currency in China can have a negative impact on our sales of products produced there. In addition, because our foreign operations use the U.S. dollar as their functional currency, changes in the exchange rate between the local currency of those operations and the U.S dollar can affect our reported profits from those foreign operations. Also, economic or political instability in international areas could affect our operations or sources of goods in those areas, as well as demand for our products in international markets. The impact of public health epidemics on employees, customers, suppliers, and the global economy, such as the coronavirus pandemic, could also adversely affect our operations and financial performance. In addition, the impact of potential asset impairments, including impairments of property, plant, and equipment, inventory, or intangible assets, as well as the impact of* 

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

*valuation allowances applied against our net deferred income tax assets, could affect our financial results. Increases in freight costs, labor costs, and raw material prices, including increases in market prices for petrochemical products, can also significantly affect the prices we pay for shipping, labor, and raw materials, respectively, and in turn, increase our operating costs and decrease our profitability. Also, our success in diversifying our supply chain with reliable partners to effectively service our global platform could affect our operations and adversely affect our financial results. Finally, the future performance of our business also depends on our ability to successfully restructure our mattress fabric operations and return the segment to profitability as well as successfully integrate our mattress fabrics and upholstery fabrics segments and realize the expected benefits of that integration effort, which may not meet our expectations. Further information about these factors, as well as other factors that could affect our future operations or financial results and the matters discussed in forward-looking statements, is included in Item 1A "Risk Factors" in our most recent Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission.*

*Many of these factors are macroeconomic in nature and are, therefore, beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in this release as anticipated, believed, estimated, expected, intended, planned or projected. The forward-looking statements included in this release are made only as of the date of this report. Unless required by United States federal securities laws, we neither intend nor assume any obligation to update these forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations or financial results.*

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.** 

**CONSOLIDATED STATEMENTS OF NET LOSS**

**FOR THE THREE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024**

**Unaudited**

**(Amounts in Thousands, Except for Per Share Data)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** |
|  | Amount | Amount |  | Percent of Sales | Percent of Sales |
|  | **(1)** | (1) |  |  |  |
|  | **April 27,** | April 28, | % Over | **April 27,** | April 28, |
|  | **2025** | 2024 | (Under) | **2025** | 2024 |
| Net sales | $**48773** | $49528 | (1.5)% | **100.0%** | 100.0% |
| Cost of sales (1) | **(41120)** | (44327) | (7.2)% | **84.3%** | 89.5% |
| Gross profit | **7653** | 5201 | 47.1% | **15.7%** | 10.5% |
| Selling, general and administrative<br> expenses | **(8470)** | (9245) | (8.4)% | **17.4%** | 18.7% |
| Restructuring expense (2) | **(1422)** | (204) | N.M | **2.9%** | 0.4% |
| Loss from operations | **(2239)** | (4248) | (47.3)% | **(4.6)%** | (8.6)% |
| Interest expense | **(110)** | (11) | N.M. | **0.2%** | 0.0% |
| Interest income | **154** | 263 | (41.4)% | **0.3%** | 0.5% |
| Other expense | **(121)** | (64) | 89.1% | **(0.2)%** | (0.1)% |
| Loss before income taxes | **(2316)** | (4060) | (43.0)% | **(4.7)%** | (8.2)% |
| Income tax benefit (expense) (3) | **243** | (805) | (130.2)% | **10.5%** | (19.8)% |
| Net loss | $**(2073)** | $(4865) | (57.4)% | **(4.3)%** | (9.8)% |
| Net loss per share - basic | $**(0.17)** | $(0.39) | (56.4)% |  |  |
| Net loss per share - diluted | $**(0.17)** | $(0.39) | (56.4)% |  |  |
| Average shares outstanding-basic | **12559** | 12470 | 0.7% |  |  |
| Average shares outstanding-diluted | **12559** | 12470 | 0.7% |  |  |

---

Notes

(1) See page 16 for a Reconciliation of Selected Income Statement Information to Adjusted Results for the three months ending April 27, 2025, and April 28, 2024.

(2) See page 18 for a Summary of Restructuring Expense for the three months ending April 27, 2025, and April 28, 2024.

(3) Percent of sales column for income tax benefit (expense) is calculated as a percent of loss before income taxes.

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.** 

**CONSOLIDATED STATEMENTS OF NET LOSS**

**FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024**

**Unaudited**

**(Amounts in Thousands, Except for Per Share Data)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **TWELVE MONTHS ENDED** | **TWELVE MONTHS ENDED** | **TWELVE MONTHS ENDED** | **TWELVE MONTHS ENDED** | **TWELVE MONTHS ENDED** |
|  | Amount | Amount |  | Percent of Sales | Percent of Sales |
|  | **(1)** | (1) |  |  |  |
|  | **April 27,** | April 28, | % Over | **April 27,** | April 28, |
|  | **2025** | 2024 | (Under) | **2025** | 2024 |
| Net sales | $**213237** | $225333 | (5.4)% | **100.0%** | 100.0% |
| Cost of sales (1) | **(188170)** | (197394) | (4.7)% | **88.2%** | 87.6% |
| Gross profit | **25067** | 27939 | (10.3)% | **11.8%** | 12.4% |
| Selling, general and administrative<br> expenses | **(35705)** | (38611) | (7.5)% | **16.7%** | 17.1% |
| Restructuring expense (2) | **(7739)** | (636) | N.M. | **3.6%** | 0.3% |
| Loss from operations | **(18377)** | (11308) | 62.5% | **(8.6)%** | (5.0)% |
| Interest expense | **(231)** | (11) | N.M. | **0.1%** | 0.0% |
| Interest income | **915** | 1174 | (22.1)% | **0.4%** | 0.5% |
| Other expense | **(1018)** | (625) | 62.9% | **0.5%** | 0.3% |
| Loss before income taxes | **(18711)** | (10770) | 73.7% | **(8.8)%** | (4.8)% |
| Income tax expense (3) | **(392)** | (3049) | (87.1)% | **(2.1)%** | (28.3)% |
| Net loss | $**(19103)** | $(13819) | 38.2% | **(9.0)%** | (6.1)% |
| Net loss per share - basic | $**(1.53)** | $(1.11) | 37.8% |  |  |
| Net loss per share - diluted | $**(1.53)** | $(1.11) | 37.8% |  |  |
| Average shares outstanding-basic | **12525** | 12432 | 0.7% |  |  |
| Average shares outstanding-diluted | **12525** | 12432 | 0.7% |  |  |

---

Notes

(1) See page 17 for a Reconciliation of Selected Income Statement Information to Adjusted Results for the twelve months ending April 27, 2025, and April 28, 2024.

(2) See page 19 for a Summary of Restructuring Expense for the twelve months ending April 27, 2025, and April 28, 2024.

(3) Percent of sales column for income tax expense is calculated as a percent of loss before income taxes.

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CONSOLIDATED BALANCE SHEETS**

**APRIL 27, 2025, AND APRIL 28, 2024**

**Unaudited**

**(Amounts in Thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Amounts** | **Amounts** |  |  |
|  | **(Condensed)** | (Condensed) |  |  |
|  | **April 27,** | April 28, | Increase (Decrease) | Increase (Decrease) |
|  | **2025** | 2024\* | Dollars | Percent |
| Current assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**5629** | $10012 | (4383) | (43.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments - rabbi trust | **1325** | 903 | 422 | 46.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | **21844** | 21138 | 706 | 3.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | **49309** | 44843 | 4466 | 10.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term notes receivable | **280** | 264 | 16 | 6.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Current income taxes receivable | **—** | 350 | (350) | (100.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | **2177** |  | 2177 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | **2970** | 3371 | (401) | (11.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | **83534** | 80881 | 2653 | 3.3% |
| Property, plant & equipment, net | **24836** | 33182 | (8346) | (25.2)% |
| Right of use assets | **5908** | 6203 | (295) | (4.8)% |
| Intangible assets | **960** | 1876 | (916) | (48.8)% |
| Long-term investments - rabbi trust | **5722** | 7102 | (1380) | (19.4)% |
| Long-term notes receivable | **1182** | 1462 | (280) | (19.2)% |
| Deferred income taxes | **637** | 518 | 119 | 23.0% |
| Other assets | **591** | 830 | (239) | (28.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $**123370** | $132054 | (8684) | (6.6)% |
| Current liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lines of credit - current | **8114** |  | 8114 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade | **27323** | 25607 | 1716 | 6.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - capital expenditures | **23** | 343 | (320) | (93.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability - current | **2394** | 2061 | 333 | 16.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation - current | **1325** | 903 | 422 | 46.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | **422** | 1495 | (1073) | (71.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | **5333** | 6726 | (1393) | (20.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued restructuring | **610** |  | 610 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable - current | **1420** | 972 | 448 | 46.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | **46964** | 38107 | 8857 | 23.2% |
| Lines of credit - long-term | **4600** |  | 4600 | 100.0% |
| Operating lease liability - long-term | **2535** | 2422 | 113 | 4.7% |
| Income taxes payable - long-term | **790** | 2088 | (1298) | (62.2)% |
| Deferred income taxes | **5155** | 6379 | (1224) | (19.2)% |
| Deferred compensation - long-term | **5686** | 6929 | (1243) | (17.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | **65730** | 55925 | 9805 | 17.5% |
| Shareholders' equity | **57640** | 76129 | (18489) | (24.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders'<br> equity | $**123370** | $132054 | (8684) | (6.6)% |
| Shares outstanding | **12559** | 12470 | 89 | 0.7% |

---

*\* Derived from audited financial statements.*

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**SUMMARY OF CASH AND DEBT**

**APRIL 27, 2025, AND APRIL 28, 2024**

**Unaudited**

**(Amounts in Thousands)**

---

| | | |
|:---|:---|:---|
|  | **Amounts** | **Amounts** |
|  | **April 27,** | April 28, |
|  | **2025** | 2024\* |
| ***Cash:*** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**5629** | $10012 |
| ***Less Debt:*** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lines of credit - current | **8114** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Lines of credit - long-term | **4600** |  |
| ***Net (debt) cash position*** | $**(7085)** | $10012 |

---

*\* Derived from audited financial statements.*

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024**

**Unaudited**

**(Amounts in Thousands)**

---

| | | |
|:---|:---|:---|
|  | **TWELVE MONTHS ENDED** | **TWELVE MONTHS ENDED** |
|  | **Amounts** | **Amounts** |
|  | **April 27,** | April 28, |
|  | **2025** | 2024\* |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $**(19103)** | $(13819) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in<br> operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | **5440** | 6521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash inventory credit | **(2423)** | (1628) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | **405** | 390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | **650** | 915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | **(1343)** | 387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of equipment | **(27)** | (299) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash restructuring expense | **2708** | 330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency exchange gain | **(145)** | (593) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | **(722)** | 3559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **(2059)** | 1593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | **384** | (329) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | **114** | (115) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - trade | **1852** | (2926) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | **(1073)** | 303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued restructuring | **633** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and deferred compensation | **(2456)** | (1870) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | **(485)** | (643) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | **(17650)** | (8224) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | **(2947)** | (3711) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of property, plant and equipment | **1945** | 385 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from note receivable | **610** | 330 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of investments (rabbi trust) | **1725** | 1449 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of investments (rabbi trust) | **(735)** | (884) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | **598** | (2431) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from lines of credit | **21648** | 4166 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on lines of credit | **(8907)** | (4146) |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock surrendered for withholding taxes payable | **(68)** | (146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | **12673** | (126) |
| Effect of foreign currency exchange rate changes on cash and cash equivalents | **(4)** | (171) |
| Decrease in cash and cash equivalents | **(4383)** | (10952) |
| Cash and cash equivalents at beginning of year | **10012** | 20964 |
| Cash and cash equivalents at end of year | $**5629** | $10012 |
| Free Cash Flow (1) | $**(17056)** | $(10826) |

---

(1) See next page for Reconciliation of Free Cash Flow for the twelve months ending April 27, 2025, and April 28, 2024.

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**RECONCILIATION OF FREE CASH FLOW**

**FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024**

**Unaudited**

**(Amounts in Thousands)**

---

| | | |
|:---|:---|:---|
|  | **TWELVE MONTHS ENDED** | **TWELVE MONTHS ENDED** |
|  | **Amounts** | **Amounts** |
|  | **April 27,** | April 28, |
|  | **2025** | 2024 |
| A) Net cash used in operating activities | $**(17650)** | $(8224) |
| B) Minus: Capital expenditures | **(2947)** | (3711) |
| C) Plus: Proceeds from the sale of buildings and equipment | **1945** | 385 |
| D) Plus: Proceeds from note receivable | **610** | 330 |
| E) Plus: Proceeds from the sale of investments (rabbi trust) | **1725** | 1449 |
| F) Minus: Purchase of investments (rabbi trust) | **(735)** | (884) |
| G) Effects of foreign currency exchange rate changes on cash and cash equivalents | **(4)** | (171) |
| Free Cash Flow | $**(17056)** | $(10826) |

---

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**STATEMENTS OF OPERATIONS BY SEGMENT**

**FOR THE THREE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024**

**Unaudited**

**(Amounts in Thousands)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** |
|  | Amounts | Amounts |  | Percent of Total Sales | Percent of Total Sales |
|  | **April 27,** | April 28, | % Over | **April 27,** | April 28, |
| Net Sales by Segment | **2025** | 2024 | (Under) | **2025** | 2024 |
| Mattress Fabrics | $**27114** | $25750 | 5.3% | **55.6%** | 52.0% |
| Upholstery Fabrics | **21659** | 23778 | (8.9)% | **44.4%** | 48.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Sales | $**48773** | $49528 | (1.5)% | **100.0%** | 100.0% |
| Gross Profit by Segment |  |  |  | Gross Margin | Gross Margin |
| Mattress Fabrics | $**3075** | $292 | N.M. | **11.3%** | 1.1% |
| Upholstery Fabrics | **4691** | 4909 | (4.4)% | **21.7%** | 20.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Segment Gross Profit | **7766** | 5201 | 49.3% | **15.9%** | 10.5% |
| Restructuring Related Charge (1) | **(113)** |  | 100.0% | **(0.2)%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross Profit | $**7653** | $5201 | 47.1% | **15.7%** | 10.5% |
| Selling, General and Administrative<br> Expenses by Segment |  |  |  | Percent of Sales | Percent of Sales |
| Mattress Fabrics | $**3292** | $3221 | 2.2% | **12.1%** | 12.5% |
| Upholstery Fabrics | **3638** | 3934 | (7.5)% | **16.8%** | 16.5% |
| Unallocated Corporate Expenses | **1540** | 2090 | (26.3)% | **3.2%** | 4.2% |
| Selling, General and Administrative<br> Expenses | $**8470** | $9245 | (8.4)% | **17.4%** | 18.7% |
| (Loss) Income from Operations<br> by Segment |  |  |  | Operating Margin | Operating Margin |
| Mattress Fabrics | $**(217)** | $(2929) | (92.6)% | **(0.8)%** | (11.4)% |
| Upholstery Fabrics | $**1053** | $975 | 8.0% | **4.9%** | 4.1% |
| Unallocated Corporate Expenses | $**(1540)** | $(2090) | (26.3)% | **(3.2)%** | (4.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Segment Loss from<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operations | **(704)** | (4044) | (82.6)% | **(1.4)%** | (8.2)% |
| Restructuring Related Charge (1) | **(113)** |  | 100.0% | **(0.2)%** |  |
| Restructuring Expense (2) | **(1422)** | (204) | N.M. | **(2.9)%** | (0.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from Operations | $**(2239)** | $(4248) | (47.3)% | **(4.6)%** | (8.6)% |
| Depreciation Expense by Segment |  |  |  |  |  |
| Mattress Fabrics | $**1015** | $1461 | (30.5)% |  |  |
| Upholstery Fabrics | **137** | 162 | (15.4)% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation Expense | $**1152** | $1623 | (29.0)% |  |  |

---

Notes

(1) See page 16 for a Reconciliation of Selected Income Statement Information to Adjusted Results for the three months ending April 27, 2025, and April 28, 2024.

(2) See page 18 for a Summary of Restructuring Expense for the three months ending April 27, 2025, and April 28, 2024.

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**STATEMENTS OF OPERATIONS BY SEGMENT**

**FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024**

**Unaudited**

**(Amounts in Thousands)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **TWELVE MONTHS ENDED** | **TWELVE MONTHS ENDED** | **TWELVE MONTHS ENDED** | **TWELVE MONTHS ENDED** | **TWELVE MONTHS ENDED** |
|  | Amounts | Amounts |  | Percent of Total Sales | Percent of Total Sales |
|  | **April 27,** | April 28, | % Over | **April 27,** | April 28, |
| Net Sales by Segment | **2025** | 2024 | (Under) | **2025** | 2024 |
| Mattress Fabrics | $**113906** | $116370 | (2.1)% | **53.4%** | 51.6% |
| Upholstery Fabrics | **99331** | 108963 | (8.8)% | **46.6%** | 48.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Sales | $**213237** | $225333 | (5.4)% | **100.0%** | 100.0% |
| Gross Profit by Segment |  |  |  | Gross Margin | Gross Margin |
| Mattress Fabrics | $**7936** | $6289 | 26.2% | **7.0%** | 5.4% |
| Upholstery Fabrics | **18752** | 21690 | (13.5)% | **18.9%** | 19.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Segment Gross Profit | **26688** | 27979 | (4.6)% | **12.5%** | 12.4% |
| Restructuring Related Charge (1) | **(1621)** | (40) | N.M. | **(0.8)%** | (0.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross Profit | $**25067** | $27939 | (10.3)% | **11.8%** | 12.4% |
| Selling, General and Administrative<br> Expenses by Segment |  |  |  | Percent of Sales | Percent of Sales |
| Mattress Fabrics | $**13171** | $13134 | 0.3% | **11.6%** | 11.3% |
| Upholstery Fabrics | **14695** | 15903 | (7.6)% | **14.8%** | 14.6% |
| Unallocated Corporate Expenses | **7839** | 9574 | (18.1)% | **3.7%** | 4.2% |
| Selling, General and Administrative<br> Expenses | $**35705** | $38611 | (7.5)% | **16.7%** | 17.1% |
| (Loss) Income from Operations<br> by Segment |  |  |  | Operating Margin | Operating Margin |
| Mattress Fabrics | $**(5235)** | $(6845) | (23.5)% | **(4.6)%** | (5.9)% |
| Upholstery Fabrics | $**4057** | 5787 | (29.9)% | **4.1%** | 5.3% |
| Unallocated Corporate Expenses | $**(7839)** | (9574) | (18.1)% | **(3.7)%** | (4.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Segment Loss from<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operations | **(9017)** | (10632) | (15.2)% | **(4.2)%** | (4.7)% |
| Restructuring Related Charge (1) | **(1621)** | (40) | N.M. | **(0.8)%** | (0.0)% |
| Restructuring Expense (2) | **(7739)** | (636) | N.M. | **(3.6)%** | (0.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from Operations | $**(18377)** | $(11308) | 62.5% | **(8.6)%** | (5.0)% |
| Return on Capital Employed (ttm) (3) |  |  |  |  |  |
| Mattress Fabrics | **(9.5)%** | (10.8)% | (12.0)% |  |  |
| Upholstery Fabrics | **40.5%** | 62.5% | (35.2)% |  |  |
| Unallocated Corporate | **N.M.** | N.M. | N.M. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | **(13.0)%** | (13.9)% | (6.5)% |  |  |
| Capital Employed (3) |  |  |  |  |  |
| Mattress Fabrics | $**52331** | $62257 | (15.9)% |  |  |
| Upholstery Fabrics | **16751** | 7259 | 130.8% |  |  |
| Unallocated Corporate | **2945** | 4999 | (41.1)% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $**72027** | $74515 | (3.3)% |  |  |
| Depreciation Expense by Segment |  |  |  |  |  |
| Mattress Fabrics (4) | $**6178** | $5883 | 5.0% |  |  |
| Upholstery Fabrics | **601** | 638 | (5.8)% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation Expense | $**6779** | $6521 | 4.0% |  |  |

---

Notes

(1) See page 17 for a Reconciliation of Selected Income Statement Information to Adjusted Results for the twelve months ending April 27, 2025, and April 28, 2024.

(2) See page 19 for a Summary of Restructuring Expense for the twelve months ending April 27, 2025, and April 28, 2024.

(3) See pages 21 through 24 for calculation of Return on Capital Employed by Segment for the trailing twelve months ending April 27, 2025, and April 28, 2024, and a reconciliation to information from our U.S. GAAP financial statements. The capital employed balances are as of April 27, 2025, and April 28, 2024.

(4) During the twelve-month period ending April 27, 2025, depreciation expense for the mattress fabrics segment included additional depreciation expense related to the shortening of useful lives of equipment associated with the closure of operations at our manufacturing facility located in Quebec, Canada. The amount of additional depreciation expense totaling $1.3 million was classified as restructuring expense in our fiscal 2025 Consolidated Statements of Net Loss.

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS**

**FOR THE THREE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024** 

**Unaudited**

**(Amounts in Thousands)**

---

| | | | |
|:---|:---|:---|:---|
|  | **As Reported** |  | Adjusted Results |
|  | **April 27,** |  | April 27, |
|  | **2025** | Adjustments | 2025 |
| Net sales | $**48773** |  | $48773 |
| Cost of sales (1) | **(41120)** | 113 | (41007) |
| Gross profit | **7653** | 113 | 7766 |
| Selling, general and administrative<br> expenses | **(8470)** |  | (8470) |
| Restructuring expense (2) | **(1422)** | 1422 |  |
| Loss from operations | $**(2239)** | 1535 | $(704) |

---

Notes

(1) During the three months ending April 27, 2025, cost of sales included a restructuring related charge of $113,000 for losses on the disposal of inventory related to the closure of operations at the company's manufacturing facility located in Quebec, Canada.

(2) See page 18 for a Summary of Restructuring Expense for the three months ending April 27, 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | **As Reported** |  | Adjusted Results |
|  | **April 28,** |  | April 28, |
|  | **2024** | Adjustments | 2024 |
| Net sales | $**49528** |  | $49528 |
| Cost of sales | **(44327)** |  | (44327) |
| Gross profit | **5201** |  | 5201 |
| Selling, general and administrative<br> expenses | **(9245)** |  | (9245) |
| Restructuring expense (1) | **(204)** | 204 |  |
| Loss from operations | $**(4248)** | 204 | $(4044) |

---

Notes

(1) See page 18 for a Summary of Restructuring Expense for the three months ending April 28, 2024.

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS**

**FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024** 

**Unaudited**

**(Amounts in Thousands)**

---

| | | | |
|:---|:---|:---|:---|
|  | **As Reported** |  | Adjusted Results |
|  | **April 27,** |  | April 27, |
|  | **2025** | Adjustments | 2025 |
| Net sales | $**213237** |  | $213237 |
| Cost of sales (1) | **(188170)** | 1621 | (186549) |
| Gross profit | **25067** | 1621 | 26688 |
| Selling, general and administrative<br> expenses | **(35705)** |  | (35705) |
| Restructuring expense (2) | **(7739)** | 7739 |  |
| Loss from operations | $**(18377)** | 9360 | $(9017) |

---

Notes

(1) During the twelve months ending April 27, 2025, cost of sales included a restructuring related charge of $1.6 million for losses on the disposal, valuation, and markdowns of inventory related to the closure of the company's manufacturing facility located in Quebec, Canada.

(2) See page 19 for a Summary of Restructuring Expense for the twelve months ending April 27, 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | **As Reported** |  | Adjusted Results |
|  | **April 28,** |  | April 28, |
|  | **2024** | Adjustments | 2024 |
| Net sales | $**225333** |  | $225333 |
| Cost of sales (1) | **(197394)** | 40 | (197354) |
| Gross profit | **27939** | 40 | 27979 |
| Selling, general and administrative<br> expenses | **(38611)** |  | (38611) |
| Restructuring expense (2) | **(636)** | 636 |  |
| Loss from operations | $**(11308)** | 676 | $(10632) |

---

Notes

(1) During the twelve months ending April 27, 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) See page 19 for a Summary of Restructuring Expense for the twelve months ending April 28, 2024.

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**SUMMARY OF RESTRUCTURING EXPENSE**

**FOR THE THREE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024** 

**Unaudited**

**(Amounts in Thousands)**

The following summarizes restructuring expense for three-month period ending April 27, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Upholstery** | **Mattress** | **Unallocated** |  |
| **Description** | **Fabrics** | **Fabrics** | **Corporate** | **Total** |
| Employee termination benefits | $112 | $12 | $— | $124 |
| Impairment charge related to intangible asset |  |  | 540 | 540 |
| Loss on the sale and disposal of equipment | 24 | 2 |  | 26 |
| Facility consolidation and relocation expenses |  | 322 |  | 322 |
| Cost incurred to ready a closed facility for sale |  | 360 |  | 360 |
| Other associated costs |  | 50 |  | 50 |
| Total restructuring expense (1) | $136 | $746 | $540 | $1422 |

---

(1) During the three months ending April 27, 2025, restructuring expense of $1.4 million represents costs associated with (i) the closure of the company's mattress fabrics manufacturing facility located in Quebec, Canada; (ii) initial costs related to consolidating production and distribution activities from the company's upholstery fabrics distribution center located in Burlington, N.C. to the company's mattress fabrics manufacturing and distribution center located in Stokesdale, N.C.; and (iii) other expenses incurred as part of the company's strategic plan to transform its operating model as announced on April 24, 2025.

The following summarizes restructuring expense for three-month period ending April 28, 2024:

---

| | |
|:---|:---|
|  | **Upholstery** |
| **Description** | **Fabrics** |
| Employee termination benefits | 204 |
| Total restructuring expense (1) | $204 |

---

(1) During the three months ending April 28, 2024, restructuring expense of $204,000 represents employee termination benefits associated with the rationalization of the upholstery fabrics finishing operation located in Shanghai, China.

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**SUMMARY OF RESTRUCTURING EXPENSE**

**FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024**

**Unaudited**

**(Amounts in Thousands)**

The following summarizes restructuring expense for twelve-month period ending April 27, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Upholstery** | **Mattress** | **Unallocated** |  |
| **Description** | **Fabrics** | **Fabrics** | **Corporate** | **Total** |
| Employee termination benefits | $214 | $1338 | $— | $1552 |
| Impairment charge related to intangible asset | $— | $— | $540 | $540 |
| Accelerated depreciation |  | 1339 |  | 1339 |
| Impairment charges related to fixed assets |  | 131 |  | 131 |
| Loss (gain) on the sale of equipment | 24 | (171) |  | (147) |
| Lease termination costs |  | 849 |  | 849 |
| Facility consolidation and relocation expenses | 53 | 2384 |  | 2437 |
| Cost incurred to ready a closed facility for sale |  | 788 |  | 788 |
| Other associated costs | 14 | 236 |  | 250 |
| Total restructuring expense (1) | $305 | $6894 | $540 | $7739 |

---

(1) During the twelve months ending April 27, 2025, restructuring expense of $7.7 million represents costs associated with (i) consolidating the company's North American mattress fabrics operations, including the closure of the company's mattress fabrics manufacturing facility located in 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, N.C. to the mattress fabrics manufacturing and distribution center located in Stokesdale, N.C.; and (v) other expenses incurred as part of the company's strategic plan to transform its operating model as announced on April 24, 2025.

The following summarizes restructuring expense for twelve-month period ending April 28, 2024:

---

| | |
|:---|:---|
|  | **Upholstery** |
| **Description** | **Fabrics** |
| Employee termination benefits | $307 |
| Impairment charges related to equipment | 329 |
| Total restructuring expense (1) | $636 |

---

(1) During the twelve months ending April 28, 2024, restructuring expense of $636,000 represents impairment charges related to equipment of $329,000 and employee termination benefits of $103,000 related to the discontinuance of production of cut and sewn upholstery kits at the company's facility located in Ouanaminthe, Haiti and employee termination benefits of $204,000 related to the rationalization of the upholstery fabrics finishing operation located in Shanghai, China.

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA**

**FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024**

**Unaudited**

**(Amounts in Thousands)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarter<br>Ended** | **Quarter<br>Ended** | **Quarter<br>Ended** | **Quarter<br>Ended** | **Trailing<br>12 Months** |
|  | **July 28,** | **October 27,** | **January 26,** | **April 27,** | **April 27,** |
|  | **2024** | **2024** | **2025** | **2025** | **2025** |
| **Net loss** | $**(7260)** | $**(5644)** | $**(4126)** | $**(2073)** | $**(19103)** |
| **Income tax expense (benefit)** | **239** | **(50)** | **446** | **(243)** | **392** |
| **Interest income, net** | **(234)** | **(214)** | **(192)** | **(44)** | **(684)** |
| **Depreciation expense** | **1581** | **1496** | **1211** | **1152** | **5440** |
| **Restructuring expense** | **2631** | **2031** | **1655** | **1422** | **7739** |
| **Restructuring related charge** | **115** | **769** | **624** | **113** | **1621** |
| **Amortization expense** | **99** | **101** | **101** | **104** | **405** |
| **Stock based compensation** | **176** | **188** | **158** | **128** | **650** |
| **Adjusted EBITDA** | $**(2653)** | $**(1323)** | $**(123)** | $**559** | $**(3540)** |
| **% Net Sales** | **(4.7)%** | **(2.4)%** | **(0.2)%** | **1.1%** | **(1.7)%** |
|  | **Quarter<br>Ended** | **Quarter<br>Ended** | **Quarter<br>Ended** | **Quarter<br>Ended** | **Trailing<br>12 Months** |
|  | **July 30,** | **October 29,** | **January 28,** | **April 28,** | **April 28,** |
|  | **2023** | **2023** | **2024** | **2024** | **2024** |
| **Net loss** | $**(3342)** | $**(2424)** | $**(3188)** | $**(4865)** | $**(13819)** |
| **Income tax expense** | **701** | **516** | **1027** | **805** | **3049** |
| **Interest income, net** | **(345)** | **(282)** | **(284)** | **(252)** | **(1163)** |
| **Depreciation expense** | **1635** | **1617** | **1646** | **1623** | **6521** |
| **Restructuring expense (credit)** | **338** | **144** | **(50)** | **204** | **636** |
| **Restructuring related charge (credit)** | **179** | **(78)** | **(61)** | **—** | **40** |
| **Amortization expense** | **96** | **97** | **98** | **99** | **390** |
| **Stock based compensation** | **322** | **163** | **262** | **168** | **915** |
| **Adjusted EBITDA** | $**(416)** | $**(247)** | $**(550)** | $**(2218)** | $**(3431)** |
| **% Net Sales** | **(0.7)%** | **(0.4)%** | **(0.9)%** | **(4.5)%** | **(1.5)%** |
| **% Over (Under)** | **537.7%** | **435.6%** | **(77.6)%** | **(125.2)%** | **3.2%** |

---

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**RETURN ON CAPITAL EMPLOYED BY SEGMENT**

**FOR THE TWELVE MONTHS ENDED APRIL 27, 2025**

**Unaudited**

**(Amounts in Thousands)**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Adjusted Operating <br>&nbsp;&nbsp;&nbsp;&nbsp;(Loss) Income** |  |  |  |  |  |  |  |  |  |  |  |
|  | **Twelve Months<br>Ended** | **Average <br>Capital** | **Return on <br>Avg. Capital** |  |  |  |  |  |  |  |  |  |
|  | **April 27, 2025** | **Employed (1)** | **Employed (2)** |  |  |  |  |  |  |  |  |  |
| **Mattress Fabrics** | $**(5235)** | $**55170** | **(9.5)%** |  |  |  |  |  |  |  |  |  |
| **Upholstery Fabrics** | **4057** | **10027** | **40.5%** |  |  |  |  |  |  |  |  |  |
| **Unallocated Corporate** | **(7839)** | **4427** | **N.M.** |  |  |  |  |  |  |  |  |  |
| **Consolidated** | $**(9017)** | $**69624** | **(13.0)%** |  |  |  |  |  |  |  |  |  |
| **Average Capital Employed** | **As of the Three Months Ended April 27, 2025** | **As of the Three Months Ended April 27, 2025** | **As of the Three Months Ended April 27, 2025** | **As of the Three Months Ended April 27, 2025** | **As of the Three Months Ended January 26, 2025** | **As of the Three Months Ended January 26, 2025** | **As of the Three Months Ended January 26, 2025** | **As of the Three Months Ended January 26, 2025** | **As of the Three Months Ended October 27, 2024** | **As of the Three Months Ended October 27, 2024** | **As of the Three Months Ended October 27, 2024** | **As of the Three Months Ended October 27, 2024** |
|  | **Mattress** | **Upholstery** | **Unallocated** |  | **Mattress** | **Upholstery** | **Unallocated** |  | **Mattress** | **Upholstery** | **Unallocated** |  |
|  | **Fabrics** | **Fabrics** | **Corporate** | **Total** | **Fabrics** | **Fabrics** | **Corporate** | **Total** | **Fabrics** | **Fabrics** | **Corporate** | **Total** |
| **Total assets (3)** | $**70825** | $**32082** | $**20463** | $**123370** | $**70877** | $**33697** | $**22981** | $**127555** | $**69261** | $**31385** | $**28341** | $**128987** |
| **Total liabilities** | **(18494)** | **(15331)** | **(31905)** | **(65730)** | **(20337)** | **(21081)** | **(26487)** | **(67905)** | **(14948)** | **(24783)** | **(25633)** | **(65364)** |
| **Subtotal** | $**52331** | $**16751** | $**(11442)** | $**57640** | $**50540** | $**12616** | $**(3506)** | $**59650** | $**54313** | $**6602** | $**2708** | $**63623** |
| **Cash and cash equivalents** | **—** | **—** | **(5629)** | **(5629)** | **—** | **—** | **(5279)** | **(5279)** | **—** | **—** | **(10531)** | **(10531)** |
| **Short-term investments - Rabbi Trust** | **—** | **—** | **(1325)** | **(1325)** | **—** | **—** | **(1753)** | **(1753)** | **—** | **—** | **(919)** | **(919)** |
| **Current income taxes receivable** | **—** | **—** | **—** | **—** | **—** | **—** | **(1137)** | **(1137)** | **—** | **—** | **(979)** | **(979)** |
| **Long-term investments - Rabbi Trust** | **—** | **—** | **(5722)** | **(5722)** | **—** | **—** | **(6250)** | **(6250)** | **—** | **—** | **(7105)** | **(7105)** |
| **Deferred income taxes - non-current** | **—** | **—** | **(637)** | **(637)** | **—** | **—** | **(490)** | **(490)** | **—** | **—** | **(559)** | **(559)** |
| **Lines of credit - current** | **—** | **—** | **8114** | **8114** | **—** | **—** | **5384** | **5384** | **—** | **—** | **4074** | **4074** |
| **Deferred compensation - current** | **—** | **—** | **1325** | **1325** | **—** | **—** | **1753** | **1753** | **—** | **—** | **919** | **919** |
| **Accrued restructuring** |  |  | **610** | **610** |  |  | **723** | **723** |  |  | **863** | **863** |
| **Income taxes payable - current** | **—** | **—** | **1420** | **1420** | **—** | **—** | **828** | **828** | **—** | **—** | **1165** | **1165** |
| **Lines of credit - long-term** |  |  | **4600** | **4600** |  |  |  |  |  |  |  |  |
| **Income taxes payable - long-term** | **—** | **—** | **790** | **790** | **—** | **—** | **1400** | **1400** | **—** | **—** | **1378** | **1378** |
| **Deferred income taxes - non-current** | **—** | **—** | **5155** | **5155** | **—** | **—** | **6582** | **6582** | **—** | **—** | **6624** | **6624** |
| **Deferred compensation - long-term** | **—** | **—** | **5686** | **5686** | **—** | **—** | **6151** | **6151** | **—** | **—** | **6975** | **6975** |
| **Total Capital Employed** | $**52331** | $**16751** | $**2945** | $**72027** | $**50540** | $**12616** | $**4406** | $**67562** | $**54313** | $**6602** | $**4613** | $**65528** |

---

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP, INC.**

**RETURN ON CAPITAL EMPLOYED BY SEGMENT - CONTINUED**

**FOR THE TWELVE MONTHS ENDED APRIL 27, 2025**

**Unaudited**

**(Amounts in Thousands)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of the Three Months Ended July 28, 2024** | **As of the Three Months Ended July 28, 2024** | **As of the Three Months Ended July 28, 2024** | **As of the Three Months Ended July 28, 2024** | **As of the Three Months Ended April 28, 2024** | **As of the Three Months Ended April 28, 2024** | **As of the Three Months Ended April 28, 2024** | **As of the Three Months Ended April 28, 2024** |
|  | **Mattress** | **Upholstery** | **Unallocated** |  | **Mattress** | **Upholstery** | **Unallocated** |  |
|  | **Fabrics** | **Fabrics** | **Corporate** | **Total** | **Fabrics** | **Fabrics** | **Corporate** | **Total** |
| **Total assets (3)** | $**66713** | $**31763** | $**30663** | $**129139** | $**72060** | $**32629** | $**27365** | $**132054** |
| **Total liabilities** | **(10303)** | **(24857)** | **(24855)** | **(60015)** | **(9803)** | **(25370)** | **(20752)** | **(55925)** |
| **Subtotal** | $**56410** | $**6906** | $**5808** | $**69124** | $**62257** | $**7259** | $**6613** | $**76129** |
| **Cash and cash equivalents** | **—** | **—** | **(13472)** | **(13472)** | **—** | **—** | **(10012)** | **(10012)** |
| **Short-term investments - Rabbi Trust** | **—** | **—** | **(954)** | **(954)** | **—** | **—** | **(903)** | **(903)** |
| **Current income taxes receivable** | **—** | **—** | **(532)** | **(532)** | **—** | **—** | **(350)** | **(350)** |
| **Long-term investments - Rabbi Trust** | **—** | **—** | **(7089)** | **(7089)** | **—** | **—** | **(7102)** | **(7102)** |
| **Deferred income taxes - non-current** | **—** | **—** | **(528)** | **(528)** | **—** | **—** | **(518)** | **(518)** |
| **Lines of credit** | **—** | **—** | **4017** | **4017** | **—** | **—** | **—** | **—** |
| **Deferred compensation - current** | **—** | **—** | **954** | **954** | **—** | **—** | **903** | **903** |
| **Accrued Restructuring** |  |  | **633** | **633** | **—** | **—** | **—** | **—** |
| **Income taxes payable - current** | **—** | **—** | **759** | **759** | **—** | **—** | **972** | **972** |
| **Income taxes payable - long-term** | **—** | **—** | **2180** | **2180** | **—** | **—** | **2088** | **2088** |
| **Deferred income taxes - non-current** | **—** | **—** | **6449** | **6449** | **—** | **—** | **6379** | **6379** |
| **Deferred compensation - long-term** | **—** | **—** | **6946** | **6946** | **—** | **—** | **6929** | **6929** |
| **Total Capital Employed** | $**56410** | $**6906** | $**5171** | $**68487** | $**62257** | $**7259** | $**4999** | $**74515** |
|  | **Mattress** | **Upholstery** | **Unallocated** |  |  |  |  |  |
|  | **Fabrics** | **Fabrics** | **Corporate** | **Consolidated** |  |  |  |  |
| **Average Capital Employed (2)** | $**55170** | $**10027** | $**4427** | $**69624** |  |  |  |  |

---

Notes

(1) Average capital employed is calculated independently for each segment and on a consolidated basis using the five quarterly periods ending April 27, 2025, January 26, 2025, October 27, 2024, July 28, 2024, and April 28, 2024.

(2) Return on average capital employed represents the twelve months adjusted operating (loss) income as of April 27, 2025, divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term and long-term investments – rabbi trust, income taxes receivable and payable, accrued restructuring, current and long-term lines of credit, non-current deferred income tax assets and liabilities, and current and non-current deferred compensation.

(3) Intangible assets are included in unallocated corporate for all periods presented and therefore, have no effect on capital employed and return on capital employed for our mattress fabrics and upholstery fabrics segments.

-MORE-

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP INC.**

**RETURN ON CAPITAL EMPLOYED BY SEGMENT**

**FOR THE TWELVE MONTHS ENDED April 28, 2024**

**Unaudited**

**(Amounts in Thousands)**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Adjusted Operating<br> (Loss) Income** |  |  |  |  |  |  |  |  |  |  |  |
|  | **Twelve Months<br>Ended** | **Average<br> Capital** | **Return on<br>Avg. Capital** |  |  |  |  |  |  |  |  |  |
|  | **April 28, 2024** | **Employed (1)** | **Employed (2)** |  |  |  |  |  |  |  |  |  |
| **Mattress Fabrics** | $**(6845)** | $**63189** | **(10.8)%** |  |  |  |  |  |  |  |  |  |
| **Upholstery Fabrics** | **5787** | **9263** | **62.5%** |  |  |  |  |  |  |  |  |  |
| **Unallocated Corporate** | **(9574)** | **3784** | **N.M.** |  |  |  |  |  |  |  |  |  |
| **Consolidated** | $**(10632)** | $**76235** | **(13.9)%** |  |  |  |  |  |  |  |  |  |
| **Average Capital Employed** | **As of the Three months ended April 28, 2024** | **As of the Three months ended April 28, 2024** | **As of the Three months ended April 28, 2024** | **As of the Three months ended April 28, 2024** | **As of the Three months ended January 28, 2024** | **As of the Three months ended January 28, 2024** | **As of the Three months ended January 28, 2024** | **As of the Three months ended January 28, 2024** | **As of the Three months ended October 29, 2023** | **As of the Three months ended October 29, 2023** | **As of the Three months ended October 29, 2023** | **As of the Three months ended October 29, 2023** |
|  | **Mattress** | **Upholstery** | **Unallocated** |  | **Mattress** | **Upholstery** | **Unallocated** |  | **Mattress** | **Upholstery** | **Unallocated** |  |
|  | **Fabrics** | **Fabrics** | **Corporate** | **Total** | **Fabrics** | **Fabrics** | **Corporate** | **Total** | **Fabrics** | **Fabrics** | **Corporate** | **Total** |
| **Total assets (3)** | $**72060** | $**32629** | $**27365** | $**132054** | $**75572** | $**38085** | $**28341** | $**141998** | $**75924** | $**35082** | $**31154** | $**142160** |
| **Total liabilities** | **(9803)** | **(25370)** | **(20752)** | **(55925)** | **(8234)** | **(32201)** | **(20767)** | **(61202)** | **(14739)** | **(23758)** | **(20035)** | **(58532)** |
| **Subtotal** | $**62257** | $**7259** | $**6613** | $**76129** | $**67338** | $**5884** | $**7574** | $**80796** | $**61185** | $**11324** | $**11119** | $**83628** |
| **Cash and cash equivalents** | **—** | **—** | **(10012)** | **(10012)** | **—** | **—** | **(12585)** | **(12585)** | **—** | **—** | **(15214)** | **(15214)** |
| **Short-term investments - Rabbi Trust** | **—** | **—** | **(903)** | **(903)** | **—** | **—** | **(937)** | **(937)** | **—** | **—** | **(937)** | **(937)** |
| **Current income taxes receivable** | **—** | **—** | **(350)** | **(350)** | **—** | **—** | **(476)** | **(476)** | **—** | **—** | **(340)** | **(340)** |
| **Long-term investments - Rabbi Trust** | **—** | **—** | **(7102)** | **(7102)** | **—** | **—** | **(7083)** | **(7083)** | **—** | **—** | **(6995)** | **(6995)** |
| **Deferred income taxes - non-current** | **—** | **—** | **(518)** | **(518)** | **—** | **—** | **(531)** | **(531)** | **—** | **—** | **(472)** | **(472)** |
| **Deferred compensation - current** | **—** | **—** | **903** | **903** | **—** | **—** | **937** | **937** | **—** | **—** | **937** | **937** |
| **Income taxes payable - current** | **—** | **—** | **972** | **972** | **—** | **—** | **1070** | **1070** | **—** | **—** | **998** | **998** |
| **Income taxes payable - long-term** | **—** | **—** | **2088** | **2088** | **—** | **—** | **2072** | **2072** | **—** | **—** | **2055** | **2055** |
| **Deferred income taxes - non-current** | **—** | **—** | **6379** | **6379** | **—** | **—** | **6177** | **6177** | **—** | **—** | **5663** | **5663** |
| **Deferred compensation - long-term** | **—** | **—** | **6929** | **6929** | **—** | **—** | **6856** | **6856** | **—** | **—** | **6748** | **6748** |
| **Total Capital Employed** | $**62257** | $**7259** | $**4999** | $**74515** | $**67338** | $**5884** | $**3074** | $**76296** | $**61185** | $**11324** | $**3562** | $**76071** |

---

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CULP Announces Results for Fourth Quarter and Full Year Fiscal 2025

June 25, 2025

**CULP INC.**

**RETURN ON CAPITAL EMPLOYED BY SEGMENT - CONTINUED**

**FOR THE TWELVE MONTHS ENDED APRIL 28, 2024**

**Unaudited**

**(Amounts in Thousands)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of the Three Months Ended July 30, 2023** | **As of the Three Months Ended July 30, 2023** | **As of the Three Months Ended July 30, 2023** | **As of the Three Months Ended July 30, 2023** | **As of the Three Months Ended April 30, 2023** | **As of the Three Months Ended April 30, 2023** | **As of the Three Months Ended April 30, 2023** | **As of the Three Months Ended April 30, 2023** |
|  | **Mattress** | **Upholstery** | **Unallocated** |  | **Mattress** | **Upholstery** | **Unallocated** |  |
|  | **Fabrics** | **Fabrics** | **Corporate** | **Total** | **Fabrics** | **Fabrics** | **Corporate** | **Total** |
| **Total assets (3)** | $**72286** | $**37592** | $**33024** | $**142902** | $**75494** | $**39127** | $**37562** | $**152183** |
| **Total liabilities** | **(11230)** | **(25235)** | **(20320)** | **(56785)** | **(11387)** | **(29638)** | **(22078)** | **(63103)** |
| **Subtotal** | $**61056** | $**12357** | $**12704** | $**86117** | $**64107** | $**9489** | $**15484** | $**89080** |
| **Cash and cash equivalents** | **—** | **—** | **(16812)** | **(16812)** | **—** | **—** | **(20964)** | **(20964)** |
| **Short-term investments - Rabbi Trust** | **—** | **—** | **(791)** | **(791)** | **—** | **—** | **(1404)** | **(1404)** |
| **Current income taxes receivable** | **—** | **—** | **(202)** | **(202)** | **—** | **—** | **—** | **—** |
| **Long-term investments - Rabbi Trust** | **—** | **—** | **(7204)** | **(7204)** | **—** | **—** | **(7067)** | **(7067)** |
| **Deferred income taxes - non-current** | **—** | **—** | **(476)** | **(476)** | **—** | **—** | **(480)** | **(480)** |
| **Deferred compensation - current** | **—** | **—** | **791** | **791** | **—** | **—** | **1404** | **1404** |
| **Accrued restructuring** | **—** | **—** | **10** | **10** | **—** | **—** | **—** | **—** |
| **Income taxes payable - current** | **—** | **—** | **526** | **526** | **—** | **—** | **753** | **753** |
| **Income taxes payable - long-term** | **—** | **—** | **2710** | **2710** | **—** | **—** | **2675** | **2675** |
| **Deferred income taxes - non-current** | **—** | **—** | **5864** | **5864** | **—** | **—** | **5954** | **5954** |
| **Deferred compensation - long-term** | **—** | **—** | **6966** | **6966** | **—** | **—** | **6842** | **6842** |
| **Total Capital Employed** | $**61056** | $**12357** | $**4086** | $**77499** | $**64107** | $**9489** | $**3197** | $**76793** |
|  | **Mattress** | **Upholstery** | **Unallocated** |  |  |  |  |  |
|  | **Fabrics** | **Fabrics** | **Corporate** | **Consolidated** |  |  |  |  |
| **Average Capital Employed (2)** | $**63189** | $**9263** | $**3784** | $**76235** |  |  |  |  |

---

Notes

(1) Average capital employed is calculated independently for each segment and on a consolidated basis using the five quarterly periods ending April 28, 2024, January 28, 2024, October 29, 2023, July 30, 2023, and April 30, 2023.

(2) Return on average capital employed represents the last twelve months adjusted operating (loss) income as of April 28, 2024, divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term and long-term investments – rabbi trust, income taxes receivable and payable, accrued restructuring, noncurrent deferred income tax assets and liabilities, and current and non-current deferred compensation.

(3) Intangible assets are included in unallocated corporate for all periods presented and therefore, have no effect on capital employed and return on capital employed for our mattress fabrics and upholstery fabrics segments.

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## Exhibit 99.2

![Slide 1](culp-ex99_2s1.jpg)

Positioning for the Future Restructuring and Other Initiatives Responding to Pressured Macro Industry Conditions Exhibit 99.2 1 CULP Logo

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![Slide 2](culp-ex99_2s2.jpg)

Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934). Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements. Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often but not always characterized by qualifying words such as "expect," "believe," "will," "may," "should," "could," "potential," "continue," "target," "predict", "seek," "anticipate," "estimate," "intend," "plan," "project," and their derivatives, and include but are not limited to statements about expectations, projections, or trends for our future operations, strategic initiatives and plans, restructuring and integration actions, production levels, new product launches, sales, profit margins, profitability, operating (loss) income, capital expenditures, working capital levels, cost savings (including, without limitation, anticipated cost savings from restructuring, integration and consolidation actions), income taxes, SG&A or other expenses, pre-tax (loss) income, earnings, cash flow, and other performance or liquidity measures, as well as any statements regarding dividends, share repurchases, liquidity, use of cash and cash requirements, ending cash balances and cash positions, borrowing capacity, investments, potential acquisitions, cash and non-cash restructuring and restructuring-related charges, expenses, and/or credits, net proceeds from restructuring related asset dispositions, future economic or industry trends, public health epidemics, or future developments. There can be no assurance that we will realize these expectations or meet our guidance, or that these beliefs will prove correct. Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, demand for home furnishings products, consumer confidence, trends in disposable income, and general economic conditions. Decreases in these economic indicators could have a negative effect on our business and prospects. Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect us adversely. The future performance of our business depends in part on our success in conducting and finalizing acquisition negotiations and integrating acquired businesses into our existing operations. Changes in consumer tastes or preferences toward products not produced by us could erode demand for our products. Changes in tariffs or trade policy, including changes in U.S. trade enforcement priorities, or changes in the value of the U.S. dollar versus other currencies, could affect our financial results because a significant portion of our operations are located outside the United States. Strengthening of the U.S. dollar against other currencies could make our products less competitive on the basis of price in markets outside the United States, and strengthening of currencies in China can have a negative impact on our sales of products produced in those places. In addition, because our foreign operations use the U.S. dollar as their functional currency, changes in the exchange rate between the local currency of those operations and the U.S dollar can affect our reported profits from those foreign operations. Also, economic or political instability in international areas could affect our operations or sources of goods in those areas, as well as demand for our products in international markets. The impact of public health epidemics on employees, customers, suppliers, and the global economy, such as the coronavirus pandemic, could also adversely affect our operations and financial performance. In addition, the impact of potential asset impairments, including impairments of property, plant, and equipment, inventory, or intangible assets, as well as the impact of valuation allowances applied against our net deferred income tax assets, could affect our financial results. Increases in freight costs, labor costs, and raw material prices, including increases in market prices for petrochemical products, can also significantly affect the prices we pay for shipping, labor, and raw materials, respectively, and in turn, increase our operating costs and decrease our profitability. Also, our success in diversifying our supply chain with reliable partners to effectively service our global platform could affect our operations and adversely affect our financial results. Finally, the future performance of our business also depends on our ability to successfully restructure our mattress fabric operations and return the segment to profitability as well as successfully integrate our mattress fabric and upholstery fabric divisions, neither of which may meet our expectations. Further information about these factors, as well as other factors that could affect our future operations or financial results and the matters discussed in forward-looking statements, is included in Item 1A "Risk Factors" in our most recent Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission. Many of these factors are macroeconomic in nature and are, therefore, beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in this presentation as anticipated, believed, estimated, expected, intended, planned or projected. The forward-looking statements included in this presentation are made only as of the date of this presentation. Unless required by United States federal securities laws, we neither intend nor assume any obligation to update these forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations or financial results. 2 Logo

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![Slide 3](culp-ex99_2s3.jpg)

Financial and Business Implications of FY25 Restructuring Plan Consolidated CHF North American Fabric Operations Winded Down and Closed Operations in Quebec, Canada Moved Knitting and Finish Capacity to Stokesdale, NC Optimized Capacity and Overhead in North America in One Facility (NC) Transitioned Mattress Fabric Damask Weaving Operation to Strategic Sourcing Model Consolidated Haiti / DR Cut & Sew Operations into One Facility Reduced CHF workforce by approximately 240 people (35% of segment total workforce) Restructured Upholstery Fabrics (CUF) Finishing Operation in China Reduced Unallocated Corporate and Shared Service Expenses Projected Cost Savings $10-11 million in annualized cost and productivity savings, primarily via mattress segment COGS $9.4 million total restructuring & related charges with $5.6 million cash charges primarily from: Severance Restructuring Relocation of Equipment Wind-Down of Canadian Operation Close to $1.0 million reduction in annualized unallocated corporate/shared services savings Projected Proceeds from Asset Sales & Other 1. Anticipate $3-3.5 million in FY26 of after-tax proceeds from sale of owned Canada Facility 2. Received close to $2.3 million from sale of excess equipment, termination of Haiti building lease, and a small portion of proceeds from sale of Canada facility Offset against cash restructuring expense Restructuring Actions Restructuring Outcomes 3 Logo

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![Slide 4](culp-ex99_2s4.jpg)

Second Half Fiscal 25 (November 2024 – April 2025) Fiscal Q2 25 (August – October 2024) Fiscal Q1 25 (May – July 2024) Restructuring Success: Completed in 1 Year as Planned Major restructuring actions announced in early May Communicated phased closure of Canadian mattress fabrics facility to affected employees, customers, vendors, and Canadian regulatory authorities Initiated and completed negotiation of severance and stay bonus agreements Engaged broker to sell Canadian real estate Worked with supply partners on transition of damask SKUs  Initiated preliminary move and optimization of Stokesdale facility floor space for relocation of Canadian knitting and finishing equipment Completed consolidation of Haiti operations into one building Completed restructuring of upholstery fabric(CUF) finishing operation in China Negotiated termination of Haiti building lease in early Q2 (generated approximately $250,000 cash during FY25 Q4)Marketed Canadian real estate Completed transition of Damask SKUs with supply partners Made continued progress with relocation of knitting and finishing equipment to Stokesdale Made early-stage operational improvements for plant and equipment consolidation  Discontinued production at Canadian mattress fabrics facility in November  Completed relocation of equipment to Stokesdale  Completed sale of excess equipment  Completed sale of Canadian real estate (April 30, 2025)  Completed operational improvements from plant and equipment consolidation 4 Logo

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![Slide 5](culp-ex99_2s5.jpg)

FY25 Restructuring Actions Driving Operating Improvement in a Challenging Industry Sales Environment 1. Total Revenue and Total Gross Profit referenced in the table above constitute Culp, Inc.'s consolidated net sales and consolidated gross profit, respectively, for the fiscal year 2024 and fiscal year 2025 periods indicated. 2. Total Gross Profit for Q4 of FY25 includes a benefit of $1.7 million resulting from a change in Culp, Inc.'s accounting estimates for finished goods inventory markdown reserves. Total Revenue Total Gross Profit Bar chart 5 Logo

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![Slide 6](culp-ex99_2s6.jpg)

FY26 Additional Actions Responding to Prolonged Industry Slowdown –Integration, Consolidation and Price Initiatives $5 to $6 Million in Projected Annualized Benefits Integration of Stand-Alone Divisions to Synergize/Harmonize Business and Leadership Teams Division Presidents transitioned to Company-wide CCO and COO roles Consolidate operations and CULP to serve as one supplier to home furnishings industry. Creates a more agile and flexible organization better equipped to respond to customer needs and market trends Appx. $1 million annualized savings and operating improvement beginning Q2 Consolidate USA Warehousing and Distribution Relocate leased facility in Burlington, NC into owned facility in Stokesdale, NC Appx $2.0 million annualized savings from exited lease, reduced headcount and synergized operations Timing: Q3 / Q4 Disciplined Price Action to Address Tariff Uncertainty Appx. $2.5 million annualized impact Timing: Phasing in beginning Q2 Additional cost and consolidation activity under review 6 Logo

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![Slide 7](culp-ex99_2s7.jpg)

Liquidity and Access to Capital in Place Liquidity remains sufficient to navigate current environment. Recently extended domestic credit facility for additional three years at market rates. Owned U.S. real estate provides significant source of additional liquidity if needed Utilized some borrowing during fiscal 2025 to fund restructuring activity and worldwide working capital. Funded close to $2 million of cash restructuring costs with proceeds from the sale of excess manufacturing equipment and proceeds from a building lease termination in Haiti. Net proceeds of $3-$3.5 million from sale of Canada facility enhance balance sheet. Restructuring and additional actions in FY26 to significantly lower expected operating and cash burn at current low sales levels to navigate industry softness. \*Estimated proceeds net of all taxes and commissions. To be received in monthly payments during FY26. Balance Sheet Impact Total Liquidity As of 4/27/2025 (in millions) Cash $5.6 ABL Availability 21.4 China Credit Line Availability 0.0 Total Liquidity $27.0 Estimated Proceeds from Canadian Real Estate Sale\* $3.0 Total Liquidity Including Future Real Estate Sale Proceeds\* $30.0 7 Logo

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![Slide 8](culp-ex99_2s8.jpg)

What Gives CULP Confidence in Restructuring Plan / Recovery? Key Success Factors Experienced leadership team focused on profitable growth Successfully navigated significant restructuring of upholstery business beginning in early 2000's Available liquidity to support growth Strong relationships with key customers and long-term suppliers Emphasis on design creativity and product innovation Strategic manufacturing and global sourcing platform responsive to tariff fluidity Market position improving with solid placements priced in line with current costs Consistent improvement in operating performance for mattress fabrics business in FY25, in very difficult demand environment 8 Logo

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![Slide 9](culp-ex99_2s9.jpg)

Logo