Culp Inc (CULP) Q4 2024 Earnings Report

Culp Inc (CULP) reported a challenging fourth quarter for fiscal year 2024, with net sales of $49.5 million, marking a 19.4% decrease year-over-year. The company faced reduced demand across both its Mattress and Upholstery Fabrics segments due to macroeconomic headwinds and changed consumer spending behaviors, particularly exacerbated by ongoing inflationary pressures. Management has initiated a comprehensive restructuring plan targeting efficiency improvements by consolidating operations, particularly within its Mattress Fabrics segment. The immediate focus is on aligning its cost structure with current demand levels and optimizing its manufacturing capabilities. Despite the loss from operations recorded at $4.2 million, management expressed optimism about returning to profitability in the latter half of fiscal 2025, aided by product innovation and strategic operational shifts.