Segment Information (Tables)

12 Months Ended

May 03, 2026

Summary of Segment Information by Geographic Area

International sales accounted for 31%, 33%, and 32% of net sales during fiscal 2026, 2025, and 2024, respectively, and are summarized by geographic area as follows:


(dollars in thousands)	2026		2025		2024
North America (excluding USA) (1)	$	31,544	$	32,912	$	29,357
Far East and Asia (2)		28,963		30,586		36,334
All Other Areas		3,039		6,026		6,011
	$	63,546	$	69,524	$	71,702

(1)

Of this amount, $28.7 million, $28.8 million, and $25.1 million are attributable to shipments to Mexico in fiscal 2026, 2025, and 2024, respectively.

(2)

Of this amount $12.6 million, $16.0 million, and $18.3 million are attributable to shipments within China in fiscal 2026, 2025, and 2024, respectively.

Schedule of Segments Information

Statements of operations for our segments follow:


(dollars in thousands)	2026			2025			2024
Net sales by segment:
Bedding	$	116,593		$	113,906		$	116,370
Upholstery		86,889			99,331			108,963
Net sales	$	203,482		$	213,237		$	225,333
Cost of sales by segment:
Bedding	$	105,889		$	105,970		$	110,081
Upholstery		71,502			80,579			87,273
Total segment cost of sales		177,391			186,549			197,354
Restructuring related charge (1) (2) (3)		931			1,621			40
Cost of sales	$	178,322		$	188,170		$	197,394
Gross profit:
Bedding	$	10,704		$	7,936		$	6,289
Upholstery		15,387			18,752			21,690
Total segment gross profit		26,091			26,688			27,979
Restructuring related charge (1) (2) (3)		(931	)		(1,621	)		(40	)
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		(1,414	)		(1,018	)		(625	)
Loss before income taxes	$	(8,285	)	$	(18,711	)	$	(10,770	)

(1)

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.

(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 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.

See Note 10 to the consolidated financial statements for further details and a description of our restructuring activities.

Balance sheet information for our segments follow:


(dollars in thousands)	May 3, 2026		April 27, 2025
Segment assets
Bedding:
Accounts receivable	$	10,657	$	10,576
Inventory		31,757		33,293
Property, plant, and equipment (1) (2)		19,755		23,259
Assets held for sale (3)		—		2,177
Right of use assets (4)		—		125
Total bedding assets		62,169		69,430

Upholstery:
Accounts receivable		9,712		11,268
Inventory		15,737		16,016
Property, plant, and equipment (5) (6)		708		1,010
Right of use assets (7) (8)		496		2,678
Total upholstery assets		26,653		30,972
Total segment assets		88,822		100,402

Non-segment assets:
Cash and cash equivalents		8,273		5,629
Short-term investments – rabbi trust		1,477		1,325
Short-term note receivable		297		280
Current income taxes receivable		142		—
Other current assets		2,645		2,970
Long-term note receivable		885		1,182
Deferred income taxes		503		637
Property, plant, and equipment (9)		550		567
Right of use assets (10)		2,488		3,105
Intangible assets		355		960
Long-term investments - rabbi trust		4,991		5,722
Other assets		562		591
Total assets	$	111,990	$	123,370

(1)

The $19.8 million as of May 3, 2026, represents property, plant, and equipment of $18.9 million, and $825,000 located in the U.S. and Haiti, respectively.

(2)

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.

(3)

The $2.2 million as of April 27, 2025, represents assets held for sale related to the Property located in Quebec, Canada. See Notes 7, 8, and 10 to the consolidated financial statements regarding the sale of the Property located in Quebec, Canada.

(4)

The $125,000 as of April 27, 2025, represents right of use assets located in Haiti.

(5)

The $708,000 as of May 3, 2026, represents property, plant, and equipment of $642,000, $37,000, and $29,000 located in the U.S., Vietnam, and Haiti, respectively.

(6)

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.

(7)

The $496,000 as of May 3, 2026, represents right of use assets of $421,000 and $75,000 located in China and the U.S., respectively.

(8)

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.

(9)

The $550,000 as of May 3, 2026, and $567,000 as of April 27, 2025, represent property, plant, and equipment located in the U.S.

(10)

The $2.5 million as of May 3, 2026, and $3.1 million as of April 27, 2025, represent right of use assets located in the U.S.

Capital expenditures and depreciation expense information for our segments follow:


(dollars in thousands)	2026		2025		2024
Capital expenditures (1):
Bedding	$	539	$	1,550	$	3,474
Upholstery		132		285		271
Non-segment		138		792		255
Total capital expenditures	$	809	$	2,627	$	4,000

Depreciation expense
Bedding	$	3,292	$	4,361	$	5,241
Upholstery		155		174		187
Selling, general, and administrative		658		905		1,093
Total depreciation expense		4,105		5,440		6,521
Accelerated depreciation expense (2) (3)		112		1,339		—
Total	$	4,217	$	6,779	$	6,521

(1)

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

(2)

During fiscal 2026, accelerated depreciation expense totaling $112,000 related to the upholstery segment and was classified within restructuring credit in the fiscal 2026 Consolidated Statement of Net Loss. 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 fiscal 2025, accelerated depreciation expense totaling $1.3 million related to the bedding segment and was classified within restructuring expense in the fiscal 2025 Consolidated Statement of Net Loss. Accelerated depreciation expense related to shortening of useful lives of equipment associated with the closure of our bedding operation located in Quebec, Canada.