v3.26.1
Segment Information (Tables)
 3 Months Ended
Aug. 02, 2026
Segment Reporting [Abstract]  
Schedule of Segments Information

Statements of operations for our segments are as follows:

 

 

 

Three Months Ended

 

 

 

August 2, 2026

 

 

August 3, 2025

 

Net sales by segment:

 

 

 

 

 

 

Bedding

 

$

31,750

 

 

$

28,046

 

Upholstery

 

 

22,223

 

 

 

22,645

 

Net sales

 

$

53,973

 

 

$

50,691

 

Cost of sales by segment:

 

 

 

 

 

 

Bedding

 

$

27,442

 

 

$

25,104

 

Upholstery

 

 

18,093

 

 

 

18,359

 

Total segment cost of sales

 

$

45,535

 

 

$

43,463

 

     Tariff refunds (1)

 

 

(6,940

)

 

 

—

 

Cost of sales

 

$

38,595

 

 

$

43,463

 

Gross profit by segment:

 

 

 

 

 

 

Bedding

 

$

4,308

 

 

$

2,942

 

Upholstery

 

 

4,130

 

 

 

4,286

 

Total segment gross profit

 

$

8,438

 

 

$

7,228

 

      Tariff refunds (1)

 

 

6,940

 

 

 

—

 

Gross profit

 

$

15,378

 

 

$

7,228

 

Selling, general, and administrative expenses

 

 

(8,709

)

 

 

(9,119

)

Restructuring credit (2)

 

 

—

 

 

 

3,508

 

Income from operations

 

$

6,669

 

 

$

1,617

 

Interest expense

 

 

(155

)

 

 

(183

)

Interest income

 

 

134

 

 

 

235

 

Other income (expense)

 

 

201

 

 

 

(531

)

Income before income taxes

 

$

6,849

 

 

$

1,138

 

 

 

(1) During the three-month period ended August 2, 2026, the $6.9 million represents the amount received from the U.S. Customs and Border Protection Agency as a recovery of previously incurred tariff expenses under the International Emergency Economic Powers Act ("IEEPA"). The $6.9 million excludes interest and was recorded within cost of sales in the Consolidated Statement of Net Income for the three months ended August 2, 2026. See Note 18 to the consolidated financial statements for further details.

 

 

 

 

(2) For the three-month period ended August 3, 2025, the $3.5 million restructuring credit mostly represented a gain from the sale of Property, 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.

 

Balance sheet information for our segments follows:

 

(dollars in thousands)

 

August 2, 2026

 

 

August 3, 2025

 

 

May 3, 2026

 

Segment assets:

 

 

 

 

 

 

 

 

 

Bedding:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

10,035

 

 

$

10,216

 

 

$

10,657

 

Inventory

 

 

26,727

 

 

 

35,102

 

 

 

31,757

 

Property, plant and equipment (1)

 

 

19,039

 

 

 

22,061

 

 

 

19,755

 

Right of use assets (2)

 

 

—

 

 

 

50

 

 

 

—

 

Assets held for sale (3)

 

 

—

 

 

 

40

 

 

 

—

 

Total bedding assets

 

 

55,801

 

 

 

67,469

 

 

 

62,169

 

Upholstery:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

10,240

 

 

 

8,166

 

 

 

9,712

 

Inventory

 

 

15,526

 

 

 

15,007

 

 

 

15,737

 

Property, plant and equipment (4)

 

 

641

 

 

 

956

 

 

 

708

 

Right of use assets (5)

 

 

312

 

 

 

2,159

 

 

 

496

 

Total upholstery assets

 

 

26,719

 

 

 

26,288

 

 

 

26,653

 

Total segment assets

 

 

82,520

 

 

 

93,757

 

 

 

88,822

 

Non-segment assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

10,235

 

 

 

11,094

 

 

 

8,273

 

Short-term investments - rabbi trust

 

 

1,524

 

 

 

1,395

 

 

 

1,477

 

Short-term notes receivable

 

 

328

 

 

 

5,104

 

 

 

297

 

Current income taxes receivable

 

 

—

 

 

 

—

 

 

 

142

 

Other current assets

 

 

4,138

 

 

 

2,767

 

 

 

2,645

 

Long-term notes receivable

 

 

788

 

 

 

1,078

 

 

 

885

 

Deferred income taxes

 

 

507

 

 

 

475

 

 

 

503

 

Property, plant and equipment (6)

 

 

508

 

 

 

535

 

 

 

550

 

Right of use assets (7)

 

 

2,330

 

 

 

2,953

 

 

 

2,488

 

Intangible assets

 

 

323

 

 

 

865

 

 

 

355

 

Long-term investments - rabbi trust

 

 

4,757

 

 

 

5,715

 

 

 

4,991

 

Other assets

 

 

528

 

 

 

676

 

 

 

562

 

Total assets

 

$

108,486

 

 

$

126,414

 

 

$

111,990

 

 

 

(1)
The $19.0 million as of August 2, 2026, represents property, plant, and equipment of $18.1 million and $855,000 located in the U.S. and Haiti, respectively. 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 $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 $50,000 as of August 3, 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.
(4)
The $641,000 as of August 2, 2026, represents property, plant, and equipment of $590,000, $30,000 and $21,000 located in the U.S., Vietnam, and China, respectively. 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 $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 China, respectively.
(5)
The $312,000 as of August 2, 2026, represents right of use assets of $265,000 and $47,000 located in China and the U.S., respectively. 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 $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.
(6)
The $508,000, $535,000, and $550,000 as of August 2, 2026, August 3, 2025, and May 3, 2026, respectively, represent property, plant, and equipment located in the U.S.
(7)
The $2.3 million, $3.0 million, and $2.5 million as of August 2, 2026, August 3, 2025, and May 3, 2026, respectively, represent right of use assets located in the U.S.

 

Capital expenditures and depreciation expense information for our segments follows:

 

 

 

 

Three Months Ended

 

(dollars in thousands)

 

August 2, 2026

 

 

August 3, 2025

 

Capital expenditures (1):

 

 

 

 

 

 

Bedding

 

$

86

 

 

$

100

 

Upholstery

 

 

—

 

 

 

50

 

Non-Segment

 

 

—

 

 

 

14

 

Total capital expenditures

 

$

86

 

 

$

164

 

Depreciation expense:

 

 

 

 

 

 

Bedding

 

$

688

 

 

$

889

 

Upholstery

 

 

40

 

 

 

40

 

Selling, general and administrative

 

 

183

 

 

 

182

 

Total depreciation expense

 

$

911

 

 

$

1,111

 

Accelerated depreciation expense (2)

 

 

—

 

 

 

22

 

Total

 

$

911

 

 

$

1,133

 
(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 our manufacturing and distribution center located in Stokesdale, North Carolina.