Culp Gross Margin Jumps 37% in Fiscal Q1
Culp (NYSE:CULP), a textile manufacturer specializing in mattress and upholstery fabrics, reported its results for the first quarter of fiscal 2026 on September 10, 2025. The key development was a substantial improvement in gross margin and operating income, despite a double-digit sales decline. Management credited cost savings and restructuring actions, especially in its bedding segment, while ongoing trade tariffs weighed heavily on upholstery segment revenue. The quarter showed notable progress toward profitability, but the top line remains weak and the company leans on non-operating items for bottom-line recovery.
Culp designs, manufactures, and markets mattress fabrics and upholstery fabrics for home furniture manufacturers. It operates two main business segments: Bedding, which produces mattress fabrics and sewn covers, and Upholstery, which makes woven and knit fabrics for sofas, chairs, and other seating. Its major customers include bedding manufacturer Serta-Simmons and furniture group La-Z-Boy.
The company has recently focused on restructuring and cost reduction. It consolidated production facilities, cut redundant costs, and shifted more fabric sourcing to lower-cost partners in Turkey and Asia. Culp’s key success factors today include efficient supply chain management, innovative fabric design, and strong relationships with large customers. The company aims to adapt quickly to shifting trade policies, input costs, and consumer preferences across both segments.
Source Fool.com
