Culp, Inc. reports Q1 fiscal 2027 sales growth and debt reduction

Culp, Inc. reported its first-quarter fiscal 2027 financial results, showing a 6.5% year-over-year increase in consolidated net sales to $54 million. This growth occurred despite the company having one fewer selling week compared to the previous year.

The bedding segment was a primary driver of performance, with sales rising 13.2% to $31.8 million. In contrast, the upholstery segment saw a slight decrease, with revenue of $22.2 million.

Profitability saw a significant turnaround. Net income reached $6 million, or $0.47 per diluted share, compared to a net loss of $231,000 in the prior-year period. Consolidated gross profit rose to $15.4 million, or 28.5% of sales, up from $7.2 million (14.3%) a year earlier. However, these figures were bolstered by one-time tariff recoveries. Excluding these recoveries, adjusted gross profit was $8.4 million, or 15.6% of sales.

The company also reported a substantial improvement in its balance sheet, with net debt decreasing by more than 70% to $3.1 million from $10.9 million at the end of fiscal 2026. Operating cash flow increased to $8.1 million, compared to a cash use of $695,000 in the prior-year period.