v3.26.1
CONSOLIDATED STATEMENTS OF NET LOSS - USD ($)
$ in Thousands
 12 Months Ended
May 03, 2026
Apr. 27, 2025
Apr. 28, 2024
Income Statement [Abstract]      
Net sales $ 203,482 $ 213,237 $ 225,333
Cost of sales (178,322) (188,170) (197,394)
Gross profit 25,160 25,067 27,939
Selling, general and administrative expenses (34,668) (35,705) (38,611)
Restructuring credit (expense) [1],[2],[3] 2,323 (7,739) (636)
Loss from operations (7,185) (18,377) (11,308)
Interest expense (759) (231) (11)
Interest income 1,073 915 1,174
Other expense, net (1,414) (1,018) (625)
Loss before income taxes (8,285) (18,711) (10,770)
Income tax expense [4],[5] (1,926) (392) (3,049)
Net loss $ (10,211) $ (19,103) $ (13,819)
Net loss per share-basic $ (0.81) $ (1.53) $ (1.11)
Net loss per share-diluted $ (0.81) $ (1.53) $ (1.11)
[1] During fiscal 2024, we incurred a restructuring related charge and restructuring expense of $40,000 and $636,000, respectively, which related to the discontinuation of production of cut and sewn upholstery kits at the company's facility in Ouanaminthe, Haiti, and the closure of the upholstery finishing operation located in Shanghai, China during the fourth quarter.
[2] During fiscal 2025, we incurred a restructuring related charge and restructuring expense of $1.6 million and $7.7 million, respectively, which mostly related to the closure of the bedding manufacturing facility located in Quebec, Canada, and the consolidation of our North American bedding manufacturing operations, as well as initial costs related to transforming our operating model and the consolidation of certain facilities to further reduce fixed costs.
[3] During fiscal 2026, we incurred a restructuring related charge of $931,000, which represented losses on the disposal, valuation, and markdowns of inventory related to the consolidation of our North American bedding operations, as well as the consolidation of certain facilities related to transforming our operating model to one integrated Culp branded business to reduce fixed costs and enhance operating efficiency. During fiscal 2026, we recorded a restructuring credit of $2.3 million which includes a gain from the sale of the manufacturing facility located in Quebec, Canada totaling $4.0 million, partially offset by charges related to transforming our operating model and the consolidation of certain facilities to reduce fixed costs.
[4] Our negative consolidated effective income tax rates during fiscal 2026, 2025, and 2024, were caused by the mix of earnings between our U.S. operations and foreign subsidiaries, as our taxable income stemmed from: (i) our operations located in China and from the gain on sale of Property located in Canada during fiscal 2026; (ii) our operations located in China that were partially offset by a pre-tax loss incurred in Canada due to our restructuring activities during fiscal 2025; and (iii) our operations located in both China and Canada during fiscal 2024, which such jurisdictions have higher income tax rates than the U.S. In addition, we applied a full valuation allowance against our U.S. deferred income tax assets during fiscal 2026, 2025, and 2024, respectively. Consequently, an income tax benefit was not recognized for the pre-tax losses associated with our U.S. operations totaling $(15.1) million, $(18.4) million, and $(18.6) million that were incurred during fiscal 2026, 2025, and 2024, respectively.
[5] Our negative consolidated effective income tax rates during fiscal 2026, 2025, and 2024 were further caused by pre-tax losses associated with our Haitian operations, which are not subject to income tax. Our Haitian operations are located in an economic zone that permits a 0% income tax rate for the first fifteen years of operations, for which we have six years remaining. As a result of the 0% income tax rate, an income tax benefit was not recognized for the pre-tax losses associated with our Haitian operations totaling $(804,000), $(1.6) million, and $(2.1) million that were incurred during fiscal 2026, 2025, and 2024, respectively.