Culp 2026 Q1 Earnings Strong Improvement in Net Loss

Culp(CULP) reported its fiscal 2026 Q1 earnings on Sep 12th, 2025. The company significantly narrowed its net loss, showing a 96.8% reduction year-over-year and improved profitability in its key segments.

Culp(CULP) delivered better-than-expected results, with a sharp reduction in net losses and improved operational metrics. The company did not raise or lower full-year guidance, but indicated cautious optimism for sequential sales growth and margin normalization in the near term.

Revenue
Q1 2026 revenue totaled $50.69 million, a 10.3% decline from $56.54 million in the prior year. The mattress fabric segment reported $28.05 million, while upholstery fabrics generated $22.64 million, collectively driving the total net sales.

Earnings/Net Income
Culp narrowed its net loss to $231,000 in Q1 2026, a 96.8% improvement from a $7.26 million loss in Q1 2025. Earnings per share also improved significantly, with a loss of $0.02 compared to $0.58 per share the previous year. The company’s earnings performance demonstrates a strong turnaround in profitability.

Price Action
Culp’s stock price gained 3.74% on the latest trading day, surged 11.06% over the past full week, and rose 12.92% month-to-date following the earnings report.

Post-Earnings Price Action Review
Despite ongoing challenges in the home furnishings market, Culp’s management highlighted significant gross profit and operating line improvements. Strategic initiatives, including the successful restructuring of its bedding segment, have shifted the company from negative gross profit to double-digit margins. The CEO noted the need to address soft demand in residential upholstery, partly due to high tariffs and inconsistent purchasing patterns. With the "Project Blaze" initiative in place, Culp aims to streamline operations, reduce costs, and enhance efficiency, while managing liquidity and prioritizing profitability and debt reduction.

CEO Commentary
Robert Culp, President, CEO & Director, emphasized the company’s progress in Q1 2026, noting double-digit gross profit improvements and the bedding segment’s turnaround. Despite trade challenges and weak demand, Culp remains cautiously optimistic, confident in its ability to adapt and grow through ongoing cost-saving and operational efficiency measures.

Guidance
Culp expects sequential sales growth in Q2 2026 and beyond, supported by bedding margin normalization and upholstery stabilization. The company anticipates adjusted EBITDA to range from near breakeven to slightly positive in the next quarter, with full-year benefits from $18 million in annualized cost savings.

Additional News
On September 13, 2025, Culp announced its quarterly earnings results. While no major M&A activity or C-Level changes were reported in the past three weeks, the company remains focused on operational efficiency and cost management. No dividend or share repurchase announcements were made, as Culp prioritizes liquidity and profitability in the current market. The earnings report itself served as the most significant event for the firm in the period, signaling a strong step forward in its financial recovery.