Segment Information (Tables)

3 Months Ended

Aug. 03, 2025

Schedule of Operating Segments Information

Statements of operations for our operating segments are as follows:


	Three months ended
	August 3, 2025			July 28, 2024
Net sales by segment:
Bedding	$	28,046		$	28,076
Upholstery		22,645			28,461
Net sales	$	50,691		$	56,537
Cost of Sales by segment:
Bedding	$	25,104		$	28,402
Upholstery		18,359			22,943
Total segment cost of sales	$	43,463		$	51,345
Restructuring related charge (1)		—			116
Cost of Sales	$	43,463		$	51,461
Gross profit (loss) by segment:
Bedding	$	2,942		$	(326	)
Upholstery		4,286			5,518
Total segment gross profit	$	7,228		$	5,192
Restructuring related charge (1)		—			(116	)
Gross profit	$	7,228		$	5,076
Selling, general, and administrative expenses		(9,119	)		(9,296	)
Restructuring credit (expense) (2)(3)		3,508			(2,631	)
Income (loss) from operations	$	1,617		$	(6,851	)
Interest expense		(183	)		(28	)
Interest income		235			262
Other expense		(531	)		(404	)
Income (loss) before income taxes	$	1,138		$	(7,021	)

(1) For the three-month period ended July 28, 2024, cost of sales and gross profit included restructuring related charges totaling $116,000 for losses on the disposal and valuation of inventory related to the gradual discontinuation of operations at our manufacturing facility located in Quebec, Canada, which such facility was sold during the first quarter of fiscal 2026. See Note 10 to the consolidated financial statements for further details and a description of our restructuring activities.

(2) For the three-month period ended August 3, 2025, the $3.5 million restructuring credit mostly represented a gain from the sale of the Property located in Quebec, Canada, totaling $4.0 million, partially offset by charges related to activities to transform our operating model and reduce fixed costs. See Note 10 to the consolidated financial statements for further details and a description of our restructuring activities.

(3) For the three-month period ended July 28, 2024, the $2.6 million restructuring expense represented costs that were mostly associated with consolidating the company's North American mattress fabrics manufacturing and distribution facilities and the consolidation of two leased facilities related to cut and sewn mattress cover operations located in Ouanaminthe, Haiti.

Balance sheet information for our operating segments follows:


(dollars in thousands)	August 3, 2025		July 28, 2024		April 27, 2025
Segment assets:
Bedding:
Accounts receivable	$	10,216	$	10,094	$	10,576
Inventory		35,102		25,278		33,293
Property, plant and equipment (1)		22,061		28,844		23,259
Right of use assets (2)		50		568		125
Assets held for sale (3)		40		607		2,177
Total bedding assets		67,469		65,391		69,430
Upholstery:
Accounts receivable		8,166		11,493		11,268
Inventory		15,007		16,390		16,016
Property, plant and equipment (4)		956		1,098		1,010
Right of use assets (5)		2,159		1,478		2,678
Total upholstery assets		26,288		30,459		30,972
Total segment assets		93,757		95,850		100,402
Non-segment assets:
Cash and cash equivalents		11,094		13,472		5,629
Short-term investments - rabbi trust		1,395		954		1,325
Short-term notes receivable		5,104		268		280
Current income taxes receivable		—		532		—
Other current assets		2,767		3,590		2,970
Long-term notes receivable		1,078		1,394		1,182
Deferred income taxes		475		528		637
Property, plant and equipment (6)		535		534		567
Right of use assets (7)		2,953		2,437		3,105
Intangible assets		865		1,782		960
Long-term investments - rabbi trust		5,715		7,089		5,722
Other assets		676		709		591
Total assets	$	126,414	$	129,139	$	123,370

(1)

The $22.1 million as of August 3, 2025, represents property, plant, and equipment of $21.2 million and $888,000 located in the U.S. and Haiti, respectively. The $28.8 million as of July 28, 2024, represents property, plant, and equipment of $20.9 million, $7.4 million, and $511,000 located in the U.S., Canada, and Haiti, respectively. The $23.3 million as of April 27, 2025, represents property, plant, and equipment of $22.3 million and $955,000 located in the U.S. and Haiti, respectively.

(2)

The $50,000 as of August 3, 2025, represents a right of use asset in Haiti. The $568,000 as of July 28, 2024, represents right of use assets of $350,000 and $218,000 located in Haiti and Canada, respectively. The $125,000 as of April 27, 2025, represents a right of use asset in Haiti.

(3)

The $40,000 as of August 3, 2025, represents assets held for sale located in the U.S. The $607,000 as of July 28, 2024, represents assets held for sale of $357,000 and $250,000 located in the U.S. and Haiti, respectively. The $2.2 million as of April 27, 2025, represents assets held for sale located in Canada.

(4)

The $956,000 as of August 3, 2025, represents property, plant, and equipment of $897,000 and $59,000 located in the U.S. and China, respectively. The $1.1 million as of July 28, 2024, represents property, plant, and equipment of $990,000 and $108,000 located in the U.S. and China, respectively. The $1.0 million as of April 27, 2025, represents property, plant, and equipment of $940,000 and $70,000 located in the U.S. and China, respectively.

(5)

The $2.2 million as of August 3, 2025, represents right of use assets of $1.4 million and $771,000 located in China and the U.S., respectively. The $1.5 million as of July 28, 2024, represents right of use assets of $1.1 million and $393,00 located in U.S. and China, respectively. The $2.7 million as of April 27, 2025, represents right of use assets of $1.7 million and $1.0 million located in China and the U.S., respectively.

(6)

The $535,000, $534,000, and $567,000 as of August 3, 2025, July 28, 2024, and April 27, 2025, respectively, represents property, plant, and equipment located in the U.S.

(7)

The $3.0 million, $2.4 million, and $3.1 million as of August 3, 2025, July 28, 2024, and April 27, 2025, respectively, represent right of use assets located in the U.S.

Information about capital expenditures and depreciation expense for our operating segments follows:


	Three months ended
(dollars in thousands)	August 3, 2025		July 28, 2024
Capital expenditures (1):
Bedding	$	100	$	134
Upholstery		50		68
Non-Segment		14		12
Total capital expenditures	$	164	$	214
Depreciation expense:
Bedding	$	889	$	1,284
Upholstery		40		39
Selling, general and administrative		182		258
Total depreciation expense	$	1,111	$	1,581
Accelerated depreciation expense (2) (3)		22		875
Total	$	1,133	$	2,456

(1)

Capital expenditure amounts are stated on an accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis.

(2)

During the three-month period ended August 3, 2025, accelerated depreciation expense totaling $22,000 related to the upholstery segment and was classified within restructuring credit in the Consolidated Statements of Net Loss. The accelerated depreciation expense pertained to the shortening of useful lives of equipment related to the consolidation of distribution activities from our Burlington, North Carolina facility to the manufacturing and distribution center located in Stokesdale, North Carolina.

(3)

During the three-month period ended July 28, 2024, accelerated depreciation expense totaling $875,000 related to the bedding segment and was classified within restructuring expense in the Consolidated Statements of Net Loss. The accelerated depreciation expense related to the shortening of useful lives of equipment associated with the closure of our operations located in Quebec, Canada.