Culp swings to $6M profit on tariff refunds
Culp, Inc. (CULP) reported a strong turnaround for its first fiscal quarter ended August 2, 2026, with consolidated net sales of $54.0 million, up 6.5% from $50.7 million a year earlier, despite one less selling week.
Rhea-AI Filing Summary
Culp, Inc. (CULP) reported a strong turnaround for its first fiscal quarter ended August 2, 2026, with consolidated net sales of $54.0 million, up 6.5% from $50.7 million a year earlier, despite one less selling week. Reported gross profit rose to $15.4 million, or 28.5% of sales, from $7.2 million, or 14.3% of sales. This includes $6.9 million of IEEPA tariff refunds recorded in cost of sales; excluding these, adjusted gross profit was $8.4 million, or 15.6% of sales.
Operating income increased to $6.7 million (12.4% margin) from $1.6 million, while adjusted results showed a small operating loss of $0.3 million versus a $1.9 million loss a year ago. Net income was $6.0 million, or $0.47 per diluted share, compared with a net loss of $0.2 million. Adjusted EBITDA, which excludes tariff recoveries and other non‑recurring items, improved to $0.6 million from negative $0.9 million. Net debt fell over 70% to $3.1 million, supported by $8.1 million of operating cash flow and adjusted free cash flow of $8.0 million. Bedding segment sales grew 13.2% to $31.8 million, while upholstery sales were roughly flat at $22.2 million.
Positive
- Consolidated net sales grew 6.5% year over year to $54.0 million despite one less selling week, with bedding segment sales up 13.2%.
- Reported gross margin doubled from 14.3% to 28.5%, and adjusted gross margin improved to 15.6%, about a 17% increase from the prior-year period.
- Net income reached $6.0 million ($0.47 per diluted share) versus a net loss of $0.2 million a year ago, and adjusted EBITDA turned positive to $0.6 million from negative $0.9 million.
- Net debt declined over 70% to $3.1 million from $10.9 million at fiscal 2026 year-end, with $8.1 million of operating cash flow and $8.0 million of adjusted free cash flow in the quarter.
- Management expects second-quarter sales to grow year over year, break-even operating income, and accelerating adjusted EBITDA, while continuing to improve the net debt position.
Negative
- Excluding $6.9 million of tariff refunds, the company still posted an adjusted operating loss of $0.3 million, indicating underlying profitability remains fragile.
- Upholstery segment sales were roughly flat at $22.2 million versus $22.6 million a year earlier, and adjusted gross margin in this segment was essentially unchanged at about 18.6%.
Filing Explained
At August 2, Culp had $10.2 million cash, $13.3 million debt, and $29.4 million total liquidity; second-quarter targets remain forward-looking.
This Form 8-K furnishes Culp’s first-quarter fiscal 2027 results and related financial disclosures. At
The reported net debt position was
For the second quarter, management expects sequentially consistent sales volumes, break-even operating income, accelerating adjusted EBITDA, and continued improvement in net debt. Those statements describe intended or expected performance, not results already achieved.
The next specified milestone is the company’s
8-K Event Classification
Key Figures
Key Terms
adjusted EBITDA financial
net debt financial
adjusted free cash flow financial
IEEPA tariff recoveries regulatory
rabbi trust financial
restructuring credit financial
Earnings Snapshot
For the second quarter, the company expects consistent sequential sales with some growth over the prior-year quarter, break-even operating income, accelerating adjusted EBITDA, and continued improvement of its net debt position.
FAQ
How did CULP's revenue perform in the fiscal 2027 first quarter?
What was CULP's profitability in Q1 fiscal 2027?
How significant were the tariff refunds for CULP in this quarter?
What were CULP's cash flow and net debt figures for Q1 fiscal 2027?
How did CULP's bedding and upholstery segments perform?
What is CULP's outlook for the second quarter of fiscal 2027?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Securities registered pursuant to Section 12(b) of the Act:
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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
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 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 other 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. 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. Relatedly, litigation is ongoing as to whether businesses that paid tariffs that were invalidated by the U.S. Supreme Court in February 2026 may receive or retain refunds for those tariffs, which could be significant. 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 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. 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 bedding operations and return the segment to profitability as well as successfully integrate our bedding and upholstery 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 report 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 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 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
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immaterial may also affect our business operations or financial results.
Item 2.02 Results of Operations and Financial Condition.
On September 9, 2026, we issued a news release announcing our financial results for our first quarter ended August 2, 2026. 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-month periods ended August 2, 2026, and August 3, 2025, which discloses adjusted gross profit and adjusted income (loss) from operations, both of which are non-U.S. GAAP performance measures that eliminate items which are not expected to occur on a recurring or regular basis. For the three-month period ended August 2, 2026, these items include certain tariff expense refunds received by the Company following the U.S. Supreme Court's decision in February 2026 to invalidate certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). 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 gross profit or income (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. Also, net debt is used as a performance measure in our incentive-based executive compensation program. 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 adjusted 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 the 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 adjusted 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 adjusted 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 adjusted 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, 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. Beginning in the quarter ended November 2, 2025, we modified our presentation of adjusted EBITDA to also exclude non-cash foreign exchange impacts. We believe this change enhances investor insight into our operational performance by removing the non-cash impact of changes in foreign currency exchange rates. In order to facilitate comparisons among periods, we have applied this modified definition of adjusted EBITDA
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to all periods presented in the news release. 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. Also, adjusted EBITDA is used as a performance measure in our incentive-based executive compensation program. 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.
Item 9.01 Financial Statements and Exhibits.
EXHIBIT INDEX
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99.1 |
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News Release dated September 9, 2026 |
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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. (Registrant) |
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By: |
/s/ Kenneth R. Bowling |
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Chief Financial Officer |
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(principal financial officer) |
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Dated September 9, 2026
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Exhibit 99.1
CULP ANNOUNCES FIRST QUARTER FISCAL 2027 RESULTS
Plan Execution Drives Above-Market Sales Growth and Improved Profitability
Significantly Enhanced Balance Sheet from Over 70% Net Debt Reduction
HIGH POINT, N.C. (September 9, 2026) – Culp, Inc. (NASDAQ: CULP), a leading provider of fabrics for bedding and upholstery fabrics for residential, commercial, and hospitality furniture and other applications, today reported financial and operating results for its first fiscal quarter ended August 2, 2026.
Fiscal 2027 First Quarter Financial Highlights
▪ Year-over-year sales growth of 6.5%, while also overcoming one less selling week in the quarter, with consolidated net sales of $54.0 million compared to $50.7 million in the prior-year period and double-digit sales growth of 13.2% in the bedding segment.
▪ Consolidated gross profit was $15.4 million, or 28.5% of sales, compared with $7.2 million, or 14.3% of sales, in the prior-year period. Excluding the impact of IEEPA tariff recoveries in the quarter associated with previously incurred costs, adjusted gross profit was $8.4 million or 15.6% of sales, an approximately 17% increase from the prior-year period driven primarily by higher sales and operational improvements (see reconciliation table on page 10).
▪ Operating income of $6.7 million, or 12.4% of sales, compared to the prior year period’s operating income of $1.6 million, or 3.2% of sales. Excluding the impacts of the above-referenced tariff-related recoveries, adjusted operating loss was $271 thousand compared to the prior-year period’s adjusted operating loss of $1.9 million (see reconciliation table on page 10).
▪ Net income of $6.0 million, or $.47 per diluted share, compared to a net loss of $231 thousand, or $(.02) per diluted share, in the prior-year period.
▪ An over 70% reduction in net debt, to $3.1 million, compared to net debt at 2026 fiscal year end of $10.9 million (see reconciliation table on page 9), with the Company maintaining $10.2 million in total cash, $13.3 million in total debt, and total liquidity of $29.4 million at first quarter end.
▪ Cash flow from operations increased to $8.1 million compared to cash used in operations of ($695) thousand in the prior year period, and free cash flow increased to $7.8 million from negative $(874) thousand in the prior-year period. Adjusted for capital expenditures of $314 thousand and other items, free cash flow increased to $8.0 million from $311 thousand in the prior year period (see reconciliation table on page 9).
Management Commentary
Iv Culp, President and Chief Executive Officer, commented, “We are pleased with our first quarter results, namely our ability to increase sales and margins and to exceed our profitability expectations irrespective of the one-time tariff recoveries. We look at our first quarter results as more proof-of-concept that all of our work to integrate,
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CULP Announces Results for First Quarter Fiscal 2027
Page 2
September 9, 2026
restructure and optimize our platform is generating growth and profitability even in challenging conditions like those we continue to see across home furnishings. This is a clear testament to the CULP team’s successful execution of our strategic plans over the last two years.
“Our bedding business grew its topline by over 13% in a low-unit market environment and with one less shipping week this quarter compared to last year. We believe our bedding sales trend is significantly exceeding industry norms and provides a good indication that our commercial strategies should provide continued revenue growth, especially once we see the industry replacement cycle that many believe is overdue. Our enhanced U.S. operations combined with flexible nearshore and offshore options are elevating our already strong customer relationships and driving our success in this business.
“We are also encouraged to see sales in our upholstery business nearly comp the prior-year quarter despite a shorter selling period, and we are pleased with placement rates within our largest upholstery end market, residential furniture. In addition, we saw growth on the hospitality and contract side of our upholstery business and are excited about the potential to further grow those verticals.
“Our emphasis on the balance sheet and cash flow management was well reflected in our first quarter results. Through the success of our inventory reduction initiatives and management systems, together with our use of the tariff-proceeds received during the quarter, we reduced net debt down to $3 million from $11 million at the end of last fiscal year, and we are focused on moving to a net cash position.
Overall, we are optimistic about the momentum we see across our business entering the second quarter and believe our lower cost structure and global footprint position us for continued success in this low-demand environment and accelerating profitability as conditions improve.
Financial Outlook
Due to macro-economic uncertainty and the fluid global trade and tariff environment, the Company is providing only limited forward guidance at this time, with such guidance based on information available at the time of this press release and reflecting certain assumptions by management regarding the Company’s business, market and industry conditions.
▪ The Company expects consistent sequential sales volumes in the second quarter, with some growth over the prior-year quarter, and to continue to outpace bedding industry revenue trends in what it anticipates to remain a pressured demand environment for home furnishings.
▪ The Company expects the operational benefits of its recent integration and platform optimization initiatives, along with recent pricing and strategic actions, to drive break-even operating income for the second quarter, which would be a significant improvement from the comparable prior-year period in what remains a challenging market environment. The Company also expects accelerating adjusted EBITDA results for the second quarter.
▪ The Company will continue to prioritize debt reduction and free cash flow generation, and expects to continue improving its net debt position throughout the second quarter while maintaining some strategic borrowings under its China credit facilities to both maintain flexibility and leverage preferred interest rates.
Fiscal 2027 First Quarter Business Segment Highlights
Bedding
▪ Sales in this segment were $31.8 million for the first quarter, up 13.2% compared with the prior-year period despite there being one less week in the first quarter.
▪ Gross profit (excluding the impact of the tariff-related recoveries) in the bedding segment was $4.3 million, or 13.6% of sales, a significant improvement from the prior-year period’s gross profit of $2.9 million, or 10.5% of sales, driven primarily by higher revenue and enhanced operating efficiencies.
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CULP Announces Results for First Quarter Fiscal 2027
Page 3
September 9, 2026
Upholstery
▪ Sales in this segment were $22.2 million for the first quarter, generally flat to prior-year period sales of $22.7 million despite the shorter selling period.
▪ Gross profit (excluding the impact of the tariff-related recoveries) was $4.1 million, or 18.6% of sales, compared to $4.3 million, or 18.9% of sales, in the prior-year period, reflecting consistent operating margins.
Conference Call
Culp, Inc. will hold a conference call to discuss financial results for the first quarter of its fiscal year 2027 on Thursday, September 10, 2026, 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, commercial, and hospitality furniture and other applications 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
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 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, expectations with respect to tariffs, 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 other 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. 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. Relatedly, litigation is ongoing as to whether businesses that paid tariffs that were invalidated by the U.S. Supreme
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CULP Announces Results for First Quarter Fiscal 2027
Page 4
September 9, 2026
Court in February 2026 may receive or retain refunds for those tariffs, which could be significant. 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 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. The impact of public health emergencies or epidemics on employees, customers, suppliers, and the global economy 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 bedding operations, integrate our bedding and upholstery 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 report 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 release. 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 First Quarter Fiscal 2027
Page 5
September 9, 2026
CULP, INC.
CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE THREE MONTHS ENDED AUGUST 2, 2026 AND AUGUST 3, 2025
Unaudited
(Amounts in Thousands, Except for Per Share Data)
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THREE MONTHS ENDED |
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Amount |
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Percent of Sales |
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August 2, |
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August 3, |
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% Over |
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August 2, |
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August 3, |
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2026 |
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2025 |
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(Under) |
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2026 |
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2025 |
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Net sales |
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$ |
53,973 |
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$ |
50,691 |
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6.5 |
% |
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100.0 |
% |
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100.0 |
% |
Cost of sales |
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(38,595 |
) |
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(43,463 |
) |
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(11.2 |
)% |
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71.5 |
% |
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85.7 |
% |
Gross profit |
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15,378 |
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7,228 |
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112.8 |
% |
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28.5 |
% |
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14.3 |
% |
Selling, general and administrative |
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(8,709 |
) |
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(9,119 |
) |
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(4.5 |
)% |
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16.1 |
% |
|
|
18.0 |
% |
Restructuring credit |
|
$ |
— |
|
|
|
3,508 |
|
|
|
(100.0 |
)% |
|
|
0.0 |
% |
|
|
6.9 |
% |
Income from operations |
|
|
6,669 |
|
|
|
1,617 |
|
|
|
312.4 |
% |
|
|
12.4 |
% |
|
|
3.2 |
% |
Interest expense |
|
|
(155 |
) |
|
|
(183 |
) |
|
|
(15.3 |
)% |
|
|
0.3 |
% |
|
|
0.4 |
% |
Interest income |
|
|
134 |
|
|
|
235 |
|
|
|
(43.0 |
)% |
|
|
0.2 |
% |
|
|
0.5 |
% |
Other income (expense) (1) |
|
|
201 |
|
|
|
(531 |
) |
|
N.M |
|
|
|
0.4 |
% |
|
|
(1.0 |
)% |
|
Income before income taxes |
|
|
6,849 |
|
|
|
1,138 |
|
|
|
501.8 |
% |
|
|
12.7 |
% |
|
|
2.2 |
% |
Income tax expense (2) |
|
|
(868 |
) |
|
|
(1,369 |
) |
|
|
(36.6 |
)% |
|
|
12.7 |
% |
|
|
120.3 |
% |
Net income (loss) |
|
$ |
5,981 |
|
|
$ |
(231 |
) |
|
N.M |
|
|
|
11.1 |
% |
|
|
(0.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) per share - basic |
|
$ |
0.47 |
|
|
$ |
(0.02 |
) |
|
N.M. |
|
|
|
|
|
|
|
|||
Net income (loss) per share - diluted |
|
$ |
0.47 |
|
|
$ |
(0.02 |
) |
|
N.M. |
|
|
|
|
|
|
|
|||
Average shares outstanding-basic |
|
|
12,673 |
|
|
|
12,570 |
|
|
|
0.8 |
% |
|
|
|
|
|
|
||
Average shares outstanding-diluted |
|
|
12,821 |
|
|
|
12,570 |
|
|
|
2.0 |
% |
|
|
|
|
|
|
||
Notes
(1) Other income includes $814,000 related to insurance proceeds in connection with the resolution of a legal matter.
(2) The percent of sales column for income tax expense is calculated as a percent of income before income taxes.
-MORE-
CULP Announces Results for First Quarter Fiscal 2027
Page 6
September 9, 2026
CULP, INC.
CONSOLIDATED BALANCE SHEETS
AUGUST 2, 2026, AUGUST 3, 2025, AND MAY 3, 2026
Unaudited
(Amounts in Thousands)
|
|
Amounts |
|
|||||||||
|
|
(Condensed) |
|
|
(Condensed) |
|
|
(Condensed) |
|
|||
|
|
August 2, |
|
|
August 3, |
|
|
* May 3, |
|
|||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|||
Current assets |
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
10,235 |
|
|
$ |
11,094 |
|
|
$ |
8,273 |
|
Short-term investments - rabbi trust |
|
|
1,524 |
|
|
|
1,395 |
|
|
|
1,477 |
|
Accounts receivable, net |
|
|
20,275 |
|
|
|
18,382 |
|
|
|
20,369 |
|
Inventories |
|
|
42,253 |
|
|
|
50,109 |
|
|
|
47,494 |
|
Short-term notes receivable |
|
|
328 |
|
|
|
5,104 |
|
|
|
297 |
|
Current income taxes receivable |
|
|
— |
|
|
|
— |
|
|
|
142 |
|
Assets held for sale |
|
|
— |
|
|
|
40 |
|
|
|
— |
|
Other current assets |
|
|
4,138 |
|
|
|
2,767 |
|
|
|
2,645 |
|
Total current assets |
|
|
78,753 |
|
|
|
88,891 |
|
|
|
80,697 |
|
|
|
|
|
|
|
|
|
|
|
|||
Property, plant & equipment, net |
|
|
20,188 |
|
|
|
23,552 |
|
|
|
21,013 |
|
Right of use assets |
|
|
2,642 |
|
|
|
5,162 |
|
|
|
2,984 |
|
Intangible assets |
|
|
323 |
|
|
|
865 |
|
|
|
355 |
|
Long-term investments - rabbi trust |
|
|
4,757 |
|
|
|
5,715 |
|
|
|
4,991 |
|
Long-term notes receivable |
|
|
788 |
|
|
|
1,078 |
|
|
|
885 |
|
Deferred income taxes |
|
|
507 |
|
|
|
475 |
|
|
|
503 |
|
Other assets |
|
|
528 |
|
|
|
676 |
|
|
|
562 |
|
Total assets |
|
$ |
108,486 |
|
|
$ |
126,414 |
|
|
$ |
111,990 |
|
|
|
|
|
|
|
|
|
|
|
|||
Current liabilities |
|
|
|
|
|
|
|
|
|
|||
Lines of credit - current |
|
$ |
13,324 |
|
|
|
11,120 |
|
|
|
12,129 |
|
Accounts payable - trade |
|
|
22,488 |
|
|
|
24,319 |
|
|
|
25,730 |
|
Accounts payable - capital expenditures |
|
|
8 |
|
|
|
8 |
|
|
|
236 |
|
Operating lease liability - current |
|
|
765 |
|
|
|
2,209 |
|
|
|
956 |
|
Deferred compensation - current |
|
|
1,524 |
|
|
|
1,395 |
|
|
|
1,477 |
|
Deferred revenue |
|
|
203 |
|
|
|
485 |
|
|
|
281 |
|
Accrued expenses |
|
|
4,946 |
|
|
|
5,850 |
|
|
|
4,103 |
|
Accrued restructuring |
|
|
10 |
|
|
|
105 |
|
|
|
47 |
|
Income taxes payable - current |
|
|
209 |
|
|
|
2,412 |
|
|
|
— |
|
Total current liabilities |
|
|
43,477 |
|
|
|
47,903 |
|
|
|
44,959 |
|
|
|
|
|
|
|
|
|
|
|
|||
Line of credit - long-term |
|
|
— |
|
|
|
7,025 |
|
|
|
7,000 |
|
Operating lease liability - long-term |
|
|
916 |
|
|
|
1,995 |
|
|
|
1,027 |
|
Income taxes payable - long-term |
|
|
1,048 |
|
|
|
841 |
|
|
|
983 |
|
Deferred income taxes |
|
|
4,044 |
|
|
|
5,302 |
|
|
|
4,883 |
|
Deferred compensation - long-term |
|
|
4,800 |
|
|
|
5,701 |
|
|
|
4,991 |
|
Total liabilities |
|
|
54,285 |
|
|
|
68,767 |
|
|
|
63,843 |
|
Shareholders' equity |
|
|
54,201 |
|
|
|
57,647 |
|
|
|
48,147 |
|
Total liabilities and shareholders' |
|
$ |
108,486 |
|
|
$ |
126,414 |
|
|
$ |
111,990 |
|
Shares outstanding |
|
|
12,720 |
|
|
|
12,605 |
|
|
|
12,663 |
|
* Derived from audited financial statements.
-MORE-
CULP Announces Results for First Quarter Fiscal 2027
Page 7
September 9, 2026
CULP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED AUGUST 2, 2026 AND AUGUST 3, 2025
Unaudited
(Amounts in Thousands)
|
|
THREE MONTHS ENDED |
|
|||||
|
|
Amounts |
|
|||||
|
|
August 2, |
|
|
August 3, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
5,981 |
|
|
$ |
(231 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) |
|
|
|
|
|
|
||
Depreciation |
|
|
911 |
|
|
|
1,111 |
|
Non-cash inventory charge (credit) |
|
|
745 |
|
|
|
(67 |
) |
Amortization |
|
|
29 |
|
|
|
95 |
|
Stock-based compensation |
|
|
150 |
|
|
|
156 |
|
Deferred income taxes |
|
|
(843 |
) |
|
|
309 |
|
Realized gain on sale of investments (rabbi trust) |
|
|
(9 |
) |
|
|
— |
|
Gain on sale of equipment |
|
|
— |
|
|
|
(9 |
) |
Non-cash restructuring credit |
|
|
— |
|
|
|
(3,664 |
) |
Foreign currency exchange loss |
|
|
360 |
|
|
|
122 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
113 |
|
|
|
3,482 |
|
Inventories |
|
|
4,542 |
|
|
|
(683 |
) |
Other current assets |
|
|
(1,485 |
) |
|
|
212 |
|
Other assets |
|
|
13 |
|
|
|
13 |
|
Accounts payable - trade |
|
|
(3,400 |
) |
|
|
(3,126 |
) |
Deferred revenue |
|
|
(78 |
) |
|
|
63 |
|
Accrued restructuring |
|
|
(37 |
) |
|
|
(506 |
) |
Accrued expenses and deferred compensation |
|
|
724 |
|
|
|
1,016 |
|
Income taxes |
|
|
386 |
|
|
|
1,012 |
|
Net cash provided by (used in) operating activities |
|
|
8,102 |
|
|
|
(695 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(314 |
) |
|
|
(179 |
) |
Proceeds from the sale of property, plant and equipment |
|
|
— |
|
|
|
966 |
|
Proceeds from notes receivable |
|
|
90 |
|
|
|
120 |
|
Proceeds from the sale of investments (rabbi trust) |
|
|
313 |
|
|
|
237 |
|
Purchase of investments (rabbi trust) |
|
|
(91 |
) |
|
|
(158 |
) |
Net cash (used in) provided by investing activities |
|
|
(2 |
) |
|
|
986 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from lines of credit |
|
|
6,122 |
|
|
|
5,886 |
|
Payments on lines of credit |
|
|
(12,085 |
) |
|
|
(552 |
) |
Payment of debt issuance costs |
|
|
— |
|
|
|
(120 |
) |
Common stock surrendered for withholding taxes payable |
|
|
(103 |
) |
|
|
(60 |
) |
Net cash (used in) provided by financing activities |
|
|
(6,066 |
) |
|
|
5,154 |
|
Effect of foreign currency exchange rate changes on cash and cash equivalents |
|
|
(72 |
) |
|
|
20 |
|
Increase in cash and cash equivalents |
|
|
1,962 |
|
|
|
5,465 |
|
Cash and cash equivalents at beginning of year |
|
|
8,273 |
|
|
|
5,629 |
|
Cash and cash equivalents at end of period |
|
$ |
10,235 |
|
|
$ |
11,094 |
|
-MORE-
CULP Announces Results for First Quarter Fiscal 2027
Page 8
September 9, 2026
CULP, INC.
STATEMENTS OF NET SALES AND GROSS PROFIT BY SEGMENT
FOR THE THREE MONTHS ENDED AUGUST 2, 2026 AND AUGUST 3, 2025
Unaudited
(Amounts in Thousands)
|
|
THREE MONTHS ENDED |
|
|||||||||||||||||
|
|
Amounts |
|
|
|
|
|
Percent of Total Sales |
|
|||||||||||
|
|
August 2, |
|
|
August 3, |
|
|
% Over |
|
|
August 2, |
|
|
August 3, |
|
|||||
Net Sales by Segment |
|
2026 |
|
|
2025 |
|
|
(Under) |
|
|
2026 |
|
|
2025 |
|
|||||
Bedding |
|
$ |
31,750 |
|
|
$ |
28,046 |
|
|
|
13.2 |
% |
|
|
58.8 |
% |
|
|
55.3 |
% |
Upholstery |
|
|
22,223 |
|
|
|
22,645 |
|
|
|
(1.9 |
)% |
|
|
41.2 |
% |
|
|
44.7 |
% |
Net Sales |
|
$ |
53,973 |
|
|
$ |
50,691 |
|
|
|
6.5 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross Profit by Segment |
|
|
|
|
|
|
|
|
|
|
Gross Margin |
|
||||||||
Bedding |
|
$ |
4,308 |
|
|
$ |
2,942 |
|
|
|
46.4 |
% |
|
|
13.6 |
% |
|
|
10.5 |
% |
Upholstery |
|
|
4,130 |
|
|
|
4,286 |
|
|
|
(3.6 |
)% |
|
|
18.6 |
% |
|
|
18.9 |
% |
Total Segment Gross Profit |
|
|
8,438 |
|
|
|
7,228 |
|
|
|
16.7 |
% |
|
|
15.6 |
% |
|
|
14.3 |
% |
Tariff Refunds (1) |
|
|
6,940 |
|
|
|
— |
|
|
|
100.0 |
% |
|
|
12.9 |
% |
|
|
— |
|
Gross Profit |
|
$ |
15,378 |
|
|
$ |
7,228 |
|
|
|
112.8 |
% |
|
|
28.5 |
% |
|
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Notes
(1) During the three-month period ended August 2, 2026, the company received tariff refunds from the U.S. Customs and Border Protection Agency. The $6.9 million, excluding interest, was recorded within cost of sales in the first quarter fiscal 2027 Consolidated Statement of Net Income.
-MORE-
CULP Announces Results for First Quarter Fiscal 2027
Page 9
September 9, 2026
CULP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Unaudited
(Amounts in Thousands)
RECONCILIATION OF NET DEBT
|
|
Amounts |
|
|||||||||
|
|
August 2, |
|
|
August 3, |
|
|
* May 3, |
|
|||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|||
Cash: |
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
10,235 |
|
|
$ |
11,094 |
|
|
$ |
8,273 |
|
Debt: |
|
|
|
|
|
|
|
|
|
|||
Lines of credit - current |
|
|
13,324 |
|
|
|
11,120 |
|
|
|
12,129 |
|
Line of credit - long-term |
|
|
— |
|
|
|
7,025 |
|
|
|
7,000 |
|
Total debt |
|
$ |
13,324 |
|
|
$ |
18,145 |
|
|
$ |
19,129 |
|
|
|
|
|
|
|
|
|
|
|
|||
Net debt position |
|
$ |
(3,089 |
) |
|
$ |
(7,051 |
) |
|
$ |
(10,856 |
) |
* Derived from audited financial statements
RECONCILIATION OF ADJUSTED FREE CASH FLOW
|
|
THREE MONTHS ENDED |
|
|||||
|
|
Amounts |
|
|||||
|
|
August 2, |
|
|
August 3, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Net cash provided by (used in) operating activities |
|
$ |
8,102 |
|
|
$ |
(695 |
) |
Minus: Capital expenditures |
|
|
(314 |
) |
|
|
(179 |
) |
Free Cash Flow |
|
|
7,788 |
|
|
|
(874 |
) |
Plus: Proceeds from the sale of property, plant, and equipment |
|
|
— |
|
|
|
966 |
|
Plus: Proceeds from notes receivable |
|
|
90 |
|
|
|
120 |
|
Plus: Proceeds from the sale of investments (rabbi trust) |
|
|
313 |
|
|
|
237 |
|
Minus: Purchase of investments (rabbi trust) |
|
|
(91 |
) |
|
|
(158 |
) |
Effects of foreign currency exchange rate changes on cash and cash equivalents |
|
|
(72 |
) |
|
|
20 |
|
Adjusted Free Cash Flow |
|
$ |
8,028 |
|
|
$ |
311 |
|
-MORE-
CULP Announces Results for First Quarter Fiscal 2027
Page 10
September 9, 2026
CULP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (CONTINUED)
Unaudited
(Amounts in Thousands)
RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS
|
|
Three months ended August 2, 2026 |
|
|||||||||
|
|
As Reported |
|
|
|
|
|
Adjusted Results |
|
|||
|
|
August 2, |
|
|
|
|
|
August 2, |
|
|||
|
|
2026 |
|
|
Adjustments |
|
|
2026 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Net sales |
|
$ |
53,973 |
|
|
|
— |
|
|
$ |
53,973 |
|
Cost of sales (1) |
|
|
(38,595 |
) |
|
|
(6,940 |
) |
|
|
(45,535 |
) |
Gross profit |
|
|
15,378 |
|
|
|
(6,940 |
) |
|
|
8,438 |
|
Selling, general and administrative |
|
|
(8,709 |
) |
|
|
— |
|
|
|
(8,709 |
) |
Income (loss) from operations |
|
$ |
6,669 |
|
|
|
(6,940 |
) |
|
$ |
(271 |
) |
Notes
(1) During the three-month period ended August 2, 2026, the $6.9 million represents cash proceeds regarding final approval from the U.S. Customs and Border Protection Agency regarding our tariff refund claims. The $6.9 million excludes interest and was recorded within cost of sales in the first quarter fiscal 2027 Consolidated Statement of Net Income.
|
|
Three months ended August 3, 2025 |
|
|||||||||
|
|
As Reported |
|
|
|
|
|
Adjusted Results |
|
|||
|
|
August 3, |
|
|
|
|
|
August 3, |
|
|||
|
|
2025 |
|
|
Adjustments |
|
|
2025 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Net sales |
|
$ |
50,691 |
|
|
|
— |
|
|
$ |
50,691 |
|
Cost of sales |
|
|
(43,463 |
) |
|
|
— |
|
|
|
(43,463 |
) |
Gross profit |
|
|
7,228 |
|
|
|
— |
|
|
|
7,228 |
|
Selling, general and administrative |
|
|
(9,119 |
) |
|
|
— |
|
|
|
(9,119 |
) |
Restructuring credit (1) |
|
|
3,508 |
|
|
|
(3,508 |
) |
|
|
— |
|
Income (loss) from operations |
|
$ |
1,617 |
|
|
|
(3,508 |
) |
|
$ |
(1,891 |
) |
Notes
(1) During the three-month period ended August 3, 2025, restructuring credit mostly represented a gain from the sale of the manufacturing facility located in Quebec, Canada totaling $4.0 million, partially offset by charges related to our activities to transform our operating model and reduce fixed costs.
-MORE-
CULP Announces Results for First Quarter Fiscal 2027
Page 11
September 9, 2026
CULP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (CONTINUED)
Unaudited
(Amounts in Thousands)
RECONCILIATION OF ADJUSTED EBITDA
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|
Trailing |
|
|||||
|
|
November 2, |
|
|
February 1, |
|
|
May 3, |
|
|
August 2, |
|
|
August 2, |
|
|||||
|
|
2025 |
|
|
2026 |
|
|
2026 |
|
|
2026 |
|
|
2026 |
|
|||||
Net loss (income) |
|
$ |
(4,306 |
) |
|
$ |
(3,432 |
) |
|
$ |
(2,242 |
) |
|
$ |
5,981 |
|
|
$ |
(3,999 |
) |
Income tax expense |
|
|
207 |
|
|
|
292 |
|
|
|
58 |
|
|
|
868 |
|
|
|
1,425 |
|
Interest (income) expense, net |
|
|
(50 |
) |
|
|
(192 |
) |
|
|
(19 |
) |
|
|
21 |
|
|
|
(240 |
) |
Depreciation expense |
|
|
1,057 |
|
|
|
974 |
|
|
|
963 |
|
|
|
911 |
|
|
|
3,905 |
|
Amortization expense |
|
|
97 |
|
|
|
96 |
|
|
|
33 |
|
|
|
29 |
|
|
|
255 |
|
EBITDA |
|
|
(2,995 |
) |
|
|
(2,262 |
) |
|
|
(1,207 |
) |
|
|
7,810 |
|
|
|
1,346 |
|
Restructuring expense |
|
|
499 |
|
|
|
584 |
|
|
|
102 |
|
|
|
— |
|
|
|
1,185 |
|
Restructuring related charge |
|
|
931 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
931 |
|
Resolution of legal matter |
|
|
— |
|
|
|
(1,000 |
) |
|
|
— |
|
|
|
(814 |
) |
|
|
(1,814 |
) |
Tariff Refunds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,940 |
) |
|
|
(6,940 |
) |
Stock based compensation |
|
|
177 |
|
|
|
129 |
|
|
|
163 |
|
|
|
150 |
|
|
|
619 |
|
Foreign currency exchange loss (1) |
|
|
396 |
|
|
|
369 |
|
|
|
382 |
|
|
|
360 |
|
|
|
1,507 |
|
Adjusted EBITDA |
|
$ |
(992 |
) |
|
$ |
(2,180 |
) |
|
$ |
(560 |
) |
|
$ |
566 |
|
|
$ |
(3,166 |
) |
% Net Sales |
|
|
(1.9 |
)% |
|
|
(4.5 |
)% |
|
|
(1.1 |
)% |
|
|
1.0 |
% |
|
|
(1.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|
Trailing |
|
|||||
|
|
October 27, |
|
|
January 26, |
|
|
April 27, |
|
|
August 3, |
|
|
August 3, |
|
|||||
|
|
2024 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|||||
Net loss |
|
$ |
(5,644 |
) |
|
$ |
(4,126 |
) |
|
$ |
(2,073 |
) |
|
$ |
(231 |
) |
|
$ |
(12,074 |
) |
Income tax (benefit) expense |
|
|
(50 |
) |
|
|
446 |
|
|
|
(243 |
) |
|
|
1,369 |
|
|
|
1,522 |
|
Interest income, net |
|
|
(214 |
) |
|
|
(192 |
) |
|
|
(44 |
) |
|
|
(52 |
) |
|
|
(502 |
) |
Depreciation expense |
|
|
1,496 |
|
|
|
1,211 |
|
|
|
1,152 |
|
|
|
1,111 |
|
|
|
4,970 |
|
Amortization expense |
|
|
101 |
|
|
|
101 |
|
|
|
104 |
|
|
|
95 |
|
|
|
401 |
|
EBITDA |
|
|
(4,311 |
) |
|
|
(2,560 |
) |
|
|
(1,104 |
) |
|
|
2,292 |
|
|
|
(5,683 |
) |
Restructuring expense (credit) |
|
|
2,031 |
|
|
|
1,655 |
|
|
|
1,422 |
|
|
|
(3,508 |
) |
|
|
1,600 |
|
Restructuring related charge |
|
|
769 |
|
|
|
624 |
|
|
|
113 |
|
|
|
— |
|
|
|
1,506 |
|
Stock based compensation |
|
|
188 |
|
|
|
158 |
|
|
|
128 |
|
|
|
156 |
|
|
|
630 |
|
Foreign currency exchange loss (gain) |
|
|
192 |
|
|
|
(334 |
) |
|
|
(48 |
) |
|
|
122 |
|
|
|
(68 |
) |
Adjusted EBITDA |
|
$ |
(1,131 |
) |
|
$ |
(457 |
) |
|
$ |
511 |
|
|
$ |
(938 |
) |
|
$ |
(2,015 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
% Net Sales |
|
|
(2.0 |
)% |
|
|
(0.9 |
)% |
|
|
1.0 |
% |
|
|
(1.9 |
)% |
|
|
(1.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
% Over (Under) |
|
|
(12.3 |
)% |
|
|
377.0 |
% |
|
|
(209.6 |
)% |
|
|
(160.3 |
)% |
|
|
57.1 |
% |
Notes
(1) Represents non-cash foreign currency exchange loss (gain) related to the remeasurement of assets and liabilities denominated in currencies other than the U.S. dollar. Beginning in the quarter ended November 2, 2025, we modified our presentation of adjusted EBITDA to exclude this measure. We believe this change enhances investor insight into our operational performance by excluding the non-cash impact of changes in foreign currency exchange rates. In order to facilitate comparisons among periods, we have applied this modified definition of adjusted EBITDA to all periods presented.
-MORE-