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what it is
Culp makes mattress and furniture fabrics, plus sewn mattress covers, for bedding and upholstery manufacturers.
how it gets paid
Last year Culp made $213M in revenue. mattress fabrics was the main engine at $82M, or 38% of sales.
why growth slowed
Revenue fell 5.4% last year. The latest reported quarter showed a net loss of $3.4M.
what just happened
Culp reported quarterly revenue of $48.0M and a loss, showing improvement from earlier quarters but not enough to clear expectations.
At a glance
C++ balance sheet — some cracks in the foundation
25/100 earnings predictability — expect surprises
19.2x trailing p/e — priced about right
5.3% return on capital — nothing to write home about
-$1.13 fy2024 eps est
xvary composite: 46/100 — below average
What they do
Culp makes mattress and furniture fabrics, plus sewn mattress covers, for bedding and upholstery manufacturers.
Culp’s edge is coverage, not glamour. It runs production in North Carolina, Tennessee, Quebec, Shanghai, and Haiti, and it also sources from China, Vietnam, and Turkey. Scale → more places to make and source → fewer supply shocks for your customers. With 829 employees, it is small enough to stay lean and broad enough to serve both bedding and furniture buyers.
How they make money
$213M
annual revenue · their business grew -5.4% last year
mattress fabrics
$82M
5.4%
sewn mattress covers
$39M
5.4%
residential upholstery fabrics
$71M
8.0%
hospitality and commercial upholstery
$21M
8.0%
The products that matter
mattress fabrics and covers
Bedding Fabrics
$27M · 56% of quarterly sales
this is the larger segment, and it fell 28.7% vs. prior year while gross margin slipped to 7.2% from 9.6%. if this line does not stabilize, the turnaround does not either.
7.2% margin
fabrics for residential furniture
Upholstery Fabrics
$21M · 44% of quarterly sales
it generated $3.4M in gross profit last quarter at a 16.3% margin, down from 17.9%. better than bedding, but not strong enough to carry the whole company.
$3.4M gross profit
company-wide restructuring program
$20M Cost-Cut Plan
$20M target · core thesis
this is not a product, but for your investment case it matters like one. on a $37M market cap and a $3.4M quarterly loss, management is asking you to underwrite the savings plan.
turnaround lever
Key numbers
8.6%
operating margin
Operating margin → profit after running the business → so what: Culp still loses money on each sales dollar after overhead.
$213M
annual revenue
Revenue is real customer demand. It fell 5.4% vs. prior year in EDGAR, which tells you the turnaround has not reached the top line yet.
$8M
long-term debt
Debt equals 18% of capital. Plain English: leverage is present but not overwhelming. So what: the balance sheet can handle stress better than the income statement can.
5.3%
return on capital
Return on capital → profit generated from the money tied up in the business → so what: 5.3% is weak for a manufacturer that needs a real recovery story.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- long-term debt $8M (18% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for CULP right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Culp reported quarterly revenue of $48.0M and a loss, showing improvement from earlier quarters but not enough to clear expectations.
The latest reported quarter showed a net loss of $3.4M, and one source cited a $0.23 per-share loss versus a $0.14 loss estimate. Gross profit was $5.3M, with gross margin at 11.1%, down from 12.1% a year earlier.
$48.0M
revenue
-$0.23
eps
11.1%
gross margin
gross margin
11.1% is the number that mattered because a manufacturer with an 11.1% gross margin has almost no room for mistakes.
source: company earnings report, 2026
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What could go wrong
the #1 risk is bedding demand staying weak while the $20M restructuring plan falls short.
high
bedding keeps shrinking
bedding produced $27M of quarterly sales, or 56% of the total, and that revenue fell 28.7% from a year ago. if the largest segment keeps sliding, the rest of the business does not have enough scale to hide it.
exposes more than half of current quarterly revenue
high
the savings plan arrives late, light, or both
the turnaround leans on $20M of planned cost cuts. on a $37M market cap and a $3.4M quarterly net loss, this is not a side project. it is the thesis in spreadsheet form.
directly pressures the path back to breakeven
med
gross margin keeps thinning
companywide gross margin was 12.1%, bedding fell to 7.2%, and upholstery margin slipped to 16.3% from 17.9%. when both segments keep less from each sales dollar, fixed costs hit harder.
less gross profit available to absorb overhead and restructuring charges
med
small-cap trading volatility can swamp the story
this is a $37M company trading near the bottom of a $3–$6 range, and it is moving from the NYSE to Nasdaq. in stocks this small, business volatility and share-price volatility usually travel together.
your drawdowns can widen fast even when fundamentals only worsen a little
more than half of quarterly revenue comes from a segment that just fell 28.7%, while the proposed fix is a $20M restructuring plan attached to a $37M equity value.
source: institutional data · regulatory filings · risk analysis
Pay attention to
segment health
bedding revenue needs to stop falling like a trap door
28.7% is the key number. if that decline narrows in the next quarter, the turnaround gets a pulse. if not, you still own a shrinking core business.
restructuring
the catch is simple: savings need to hit the income statement
announcing a cost plan is easy. losses narrowing from the current $3.4M quarterly level is the proof beat you need.
calendar
the next earnings report is the next real referendum
management can talk about stabilization all quarter. the next print tells you whether sales, margins, or both started to cooperate.
market structure
the Nasdaq move matters more for liquidity than for operations
in a $37M stock, small shifts in trading depth can change how the chart behaves. your business thesis still lives or dies on orders and margins.
Analyst rankings
earnings predictability
25 / 100
low predictability. in human-speak, analysts do not trust this company to print steady quarters yet.
balance sheet grade
C++
below average balance sheet quality. translation: there is room to operate, but not much room for another serious stumble.
source: institutional data
Institutional activity
institutional ownership data for CULP is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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