CULP News & Events

Geopolitical risk premium remained a headwind to investor sentiment on Wednesday as traders took stock of potential threats to the West Coast utility infrastructure from Iranian drones and also comments from Iranian military warning that the world should "get ready for $200 a barrel".  Energy was by far the best performing sector in the S&P 500, and that remains so in the evening session, with WTI Crude Oil contract up over 6% above $92.50 per barrel.  Oil price remains the key barometer with a strengthened inverse correlation to equity indices - in the opening hour, S&P 500 and Nasdaq 100 contracts are both down by 0.7%.Earnings season is over, though the markets are still reacting to Q4 reports trickling in among some notable tech names.  Strong results from Oracle helped the stock to lead the S&P 500 today with a 9% jump, though this evening's quarterly updates from select software stocks with AI exposure saw more muted reactions - UiPath was down 5% while cybersecurity provider Netscope was down nearly 20% despite above-consensus numbers.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Tilly'sup 74.2%Bumbleup 18.7%Petco Health and Wellnessup 6.3%Fossil Groupup 5.8%Viant Technologyup 4.2%Digimarcup 2.3%DOWN AFTER EARNINGS -Netskopedown 17.2%Flotek Industriesdown 8.6%HighPeak Energydown 7.7%Culpdown 5.9%UiPathdown 4.6%ALSO LOWER -GlobalFoundriesdown 4.7% after equity offering

Due to macroeconomic uncertainty and the fluid global trade and tariff environment, the Company is providing only limited forward guidance. The Company's expectations are based on information available at the time of this press release and reflect certain assumptions by management regarding the Company's business and industry trends, the projected impact of restructuring and integration initiatives, ongoing market headwinds, the projected impacts of economic or political instability in the Middle East, and current tariff rates applicable to U.S. imports. The Company expects sequential consolidated sales growth for the fourth quarter of fiscal 2026, with solid expectations for the bedding segment despite what is anticipated to remain a challenged demand environment for home furnishings. The Company expects its recent pricing action to balance tariff pressure and for the cost and efficiency benefits of its completed restructuring and integration initiatives to drive improving gross profit and lower SG&A for the fourth quarter and beyond. The Company is not providing more specific operating guidance at this time due to the uncertainty around the potential tariff refunds and, if received, the meaningful impacts on its operating results and prior quarter losses. While the Company intends to continue utilizing borrowings as necessary under its domestic and foreign credit facilities during fiscal 2026 to fund working capital needs and growth, it will continue to aggressively manage liquidity and capital expenditures and prioritize free cash flow. Additionally, the $4.8 million balance due from the sale of the Company's facility in Canada is scheduled to be paid during the fourth quarter.

Reports Q3 revenue $48M vs $52.3M last year. Iv Culp, President and Chief Executive Officer, commented, "Market softness remains the headline across the home furnishings industry, and the impacts of that dynamic were evident in our results for the quarter. We're confident that the economic cycle for bedding and furniture will eventually turn within our core markets, and we have seen some green shoots on the bedding side recently, but key catalysts in housing affordability and discretionary consumer spending still need to level up for the needle to move meaningfully. Our team has effectively used this low demand period to further reset our platform, refine our go-to-market strategies, and position CULP to scale quickly and profitably, without adding capacity or cost, as volume stabilizes."