Fri, Jul 12, 3:02 PM (57 days ago)
**Abstract/Summary of Culp, Inc. 10-K Report for Fiscal Year Ended April 28, 2024** Culp, Inc. reported a 4.1% decline in net sales to $225.3 million for fiscal 2024, driven by a 12.1% decrease in the upholstery fabrics segment, partially offset by a 4.8% increase in the mattress fabrics segment. The company’s gross profit improved by 156.4% to $27.9 million, resulting in a gross margin of 12.4%, up from 4.6% in fiscal 2023. Operating expenses rose slightly by 1.7% to $38.6 million. The net loss narrowed significantly to $13.8 million from $31.5 million the previous year, primarily due to better inventory management and a more favorable sales mix. Culp announced a restructuring plan primarily targeting the mattress fabrics segment, involving the closure of its Quebec, Canada plant, consolidation of operations in North Carolina, and reduction of expenses in Haiti. This plan is expected to incur $8.0 million in restructuring costs but aims to improve asset utilization and profitability. Future outlook remains cautious due to continued macroeconomic pressures, including inflation and geopolitical uncertainties. The company expects ongoing industry softness to impact sales and profitability but aims to mitigate this through strategic restructuring and cost management efforts.