Culp, Inc. reported financial and operating results for the second fiscal quarter ended November 2, 2025.
The company saw a sequential improvement in net sales from the first quarter, with bedding segment sales showing growth both sequentially and year-over-year.
Cost optimization and restructuring initiatives have positively impacted the company's gross profitability and operating results.
Consolidated Net Sales
Net sales for the second quarter were $53.2 million, showing sequential improvement from the previous quarter.
Gross Profit Margin
Adjusted gross profit margin improved to 12.6% of sales due to cost and efficiency gains from restructuring initiatives.
Operating Loss
Operating loss decreased to $(2.0) million, excluding restructuring expenses, showcasing operational improvements.
Global Market Challenges
Culp is strategically navigating challenges in the global market, including tariff impacts and market softness.
- Through restructuring efforts, Culp's restructured bedding business has shown significant improvement, driving over 20% consolidation operating result improvement for the quarter.
- Cost-saving measures and optimization projects are expected to result in over $20 million in annualized savings by fiscal 2027.
Culp's strategic initiatives and restructuring efforts have positioned the company for continued growth and improvement despite market challenges. The focus on cost optimization and efficiency gains is driving positive results in the bedding segment.