Transcript: Culp Q4 2026 Earnings Conference Call

Culp (NYSE: CULP ) released fourth-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

Access the full call at Summary Culp Inc. 6% sequential rise and a 6% increase from the prior year. The bedding segment showed strong performance with double-digit sales growth and a 40% improvement in gross profit compared to the previous quarter, driven by operational efficiencies and product innovation. The upholstery segment faced challenges due to macroeconomic pressures but still achieved sequential revenue growth and margin improvement.

Restructuring and integration initiatives over the past two years have led to significant operational efficiencies, with expected annualized savings exceeding $20 million. The company received $7 million in tariff refunds, which will be used to reduce debt and improve liquidity. Culp Inc. is optimistic about fiscal 2027, expecting moderate sales improvement and break-even to positive adjusted EBITDA for the first quarter, despite ongoing industry headwinds.

Full Transcript OPERATOR Good day and welcome to the Culp Inc. Fourth quarter fiscal 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded.

I would now like to turn the conference over to Drew Anderson. Please go ahead. Drew Anderson Thank you. Good morning and welcome to the Culp Conference Call to review the Company's results for the fourth quarter and fiscal 2026 year.

As we start, let me state that this morning's call will contain forward-looking statements about the business, financial condition, and prospects of the Company. Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. The actual performance of the Company could differ materially from that indicated by the forward-looking statements because of various risks and uncertainties. These risks and uncertainties are described in our regular SEC filings, including the company's most recent filings on Form 10-K and Form 10-Q.

Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial results. You are cautioned not to place undue reliance on forward-looking statements made today and each such statement speaks only as of today, we undertake no obligation to update or revise forward-looking statements. In addition, during this call, the Company will be discussing non-GAAP financial measurements. com.

An investor relations presentation is also available on the Company's website as part of the webcast of today's call. I will now turn the call over to IV Culp, President and Chief Executive Officer of Culp. Please go ahead. Iv Culp, President and CEO Thank you, Drew, and good morning, everyone, and thank you for joining us today and for your interest in our company.

With me on the call is Ken Bolling, our Chief Financial Officer. We would like to first wish everyone an upcoming Happy July 4th weekend and the celebration of our country's 250th birthday. I will begin the call with some detailed comments and, as mentioned in the introduction, we have posted a slide presentation to our website that provides some information that is supplemental to our results and strategies. That slide presentation is simply entitled 4th Quarter FY26 Supplemental Information.

Ken will then review the financial results for the quarter and the full year after that. I'll briefly review our business outlook as we turn the page to fiscal 2027, and we will finish up with some questions. The main headline for our fourth quarter performance is the momentum we are building in key areas of our business as we closed out the fiscal year and now move into fiscal 2027. We are highly encouraged by our ability to achieve overall sales growth for the fourth quarter both sequentially and year over year in what remains a difficult macro environment for everyone, competitors, customers, and suppliers alike in our bedding and upholstery markets.

We were also pleased to deliver sequential improvement across several important measures, including gross profit, operating results, and the bottom line. We fully recognize that we have a lot of work ahead of us to reach the level of financial performance we ultimately expect here at Culp, but our progress this quarter clearly demonstrates to us that we are moving in the right direction. We are quite optimistic that fiscal 27 can represent a turning of the corner for Culp.

The many initiatives we have undertaken and completed over the last two years to restructure our operating platform, integrate our bedding and upholstery segments, and sharpen the commercial focus throughout our entire business are beginning to produce tangible results. Thanks to the execution of the Culp team and dedicated partners spread amongst the US, China, Turkey, Vietnam, and Haiti, we enter the new fiscal year 2027 encouraged about our performance trends both above and below the