CULP — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-09-11

• Our operations are classified into two business segments: bedding and upholstery.

• On April 24, 2025, the company announced a strategic transformation of its operating model to combine certain activities within the bedding and upholstery segments and create one integrated Culp-branded business. This strategic transformation was completed by the end of fiscal 2026.

• The bedding segment manufactures, sources, and sells fabrics and mattress covers primarily to bedding manufacturers. Currently, we have a bedding manufacturing operation located in Stokesdale, North Carolina, and a sewn mattress cover operation located in Ouanaminthe, Haiti.

• The upholstery segment develops, sources, manufactures, and sells fabrics primarily to residential, commercial, and hospitality furniture manufacturers. Currently, we have upholstery operations located in Stokesdale, North Carolina, and Shanghai, China, as well as a wholly-owned subsidiary, Culp Fab…

• During fiscal 2026, as part of the strategic transformation noted above, we closed a leased upholstery facility located in Burlington, North Carolina, and transitioned its distribution activities to a shared management model within our owned facility located in Stokesdale, North Carolina. Our Stokes…

Text removed vs the prior filing · source: 10-Q · 2026-03-13

• Our operations are classified into two business segments: bedding (formerly known as mattress fabrics) and upholstery (formerly known as upholstery fabrics).

• The bedding segment manufactures, sources, and sells fabrics and mattress covers primarily to bedding manufacturers. Currently, we have a mattress fabrics manufacturing operation located in Stokesdale, North Carolina, and a sewn mattress cover operation located in Ouanaminthe, Haiti.

• On April 29, 2024 (the first quarter of fiscal 2025), our board of directors made a decision to: (i) consolidate the company's North American bedding operations, including the closure and sale of the company's manufacturing facility and related land ("collectively referred to as the "Property") loca…

• The upholstery segment develops, sources, manufactures, and sells fabrics primarily to residential, commercial, and hospitality furniture manufacturers. Currently, we have upholstery fabric operations located in Shanghai, China; Burlington, North Carolina; and Vietnam.

• Also, Read Window Products, LLC (“Read”), is a wholly owned subsidiary that provides window treatments and sourcing of upholstery fabrics and other products, as well as related measuring and installation services, to customers in the hospitality and commercial markets. Read also supplies soft goods …

Text added vs the prior filing · source: 10-Q · 2026-09-11

• During the first quarter of fiscal 2027, we entered into unsecured loan agreements totaling 21.0 million RMB ($3.1 million USD as of August 2, 2026), which agreements expire on dates ranging from May 20, 2027, through May 25, 2027. Interest charged under these agreements is based on a fixed interest…

• Effective March 3, 2026, we entered into an unsecured loan agreement totaling 29.0 million RMB ($4.3 million USD as of August 2, 2026), which agreement is set to expire on March 1, 2027. Interest charged under this agreement is based on a applicable interest rate of 2.4%, and therefore borrowings un…

• Effective March 17, 2026, we entered into an unsecured credit agreement with the China Construction Bank of China ("CCB") that includes 20.0 million RMB ($3.0 million USD as of August 2, 2026) that can be used in the form of a working capital loan and supplier financing agreements, and is set to exp…

Text removed vs the prior filing · source: 10-Q · 2026-03-13

• Effective March 5, 2025, we entered into a separate unsecured credit agreement with the Agricultural Bank of China ("ABC") that provided for a line of credit up to 29.0 million RMB ($4.2 million USD as of February 1, 2026). Interest is charged at a rate determined by ABC, which was 2.60% per year as…

• During the first quarter of fiscal 2026, we entered into unsecured working capital loan agreements with ABC that provided for 21.0 RMB ($3.0 million USD as of February 1, 2026) working capital loan. Interest is charged at a rate determined by ABC, which ranged from 2.50% to 2.6% during the first nin…

Text added vs the prior filing · source: 10-Q · 2026-09-11

• when required, and that these disclosure controls and procedures were effective as of such date to ensure that information required to be disclosed in reports filed by us under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial O…

• During the quarter ended August 2, 2026, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Text removed vs the prior filing · source: 10-Q · 2026-03-13

• During the quarter ended February 1, 2026, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Text removed vs the prior filing · source: 10-Q · 2026-03-13

• Our business may be adversely affected by increased tariffs or other changes in U.S. trade policy related to imported products.

• Many of our products are manufactured or sourced outside of the U.S. Since early 2025, the U.S. government has imposed tariffs on imports from various countries, including China, where a significant amount of our products is manufactured. Many of these tariffs were imposed pursuant to the Internatio…

• These tariff actions compelled us to raise prices on our products and, as a result, our sales and gross margins on certain products are likely to be impacted. Moreover, the current tariff and trade regulatory environment is unpredictable, making it difficult to for us, and for our customers, to mana…

• Following the U.S. Supreme Court’s decision finding tariffs under IEEPA to be unlawful, we filed a claim with U.S. Court of International Trade seeking a refund for the amounts we paid pursuant to IEEPA tariffs. However, the availability, timing, and amount of any related refunds associated with pay…

• In addition to tariffs, the U.S. government has considered, and is expected to continue to consider, other proposals for substantial changes to its trade and tax policies, which could include import restrictions, changes to or withdrawal from existing trade agreements, and border-adjustment taxes, a…

Text added vs the prior filing · source: 10-Q · 2026-09-11

• In accordance with applicable SEC rules, the following is intended to satisfy the Company’s Item 5.02 Form 8-K reporting obligations by making timely disclosure in accordance with Item 5(a) of Form 10-Q.

• Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

• Consistent with the prior announcement in the company’s Form 8-K filed with the Securities and Exchange Commission on January 16, 2026, regarding the planned retirement of Kenneth R. Bowling, the company’s Executive Vice President, Chief Financial Officer, and Treasurer, as well as its principal fin…

• On September 9, 2026, the company’s Board of Directors appointed Mary Beth Hunsberger, previously the company’s Chief Operating Officer, to serve as the company’s Chief Financial Officer, Treasurer, principal financial officer, and principal

• accounting officer, effective September 14, 2026. Ms. Hunsberger will also retain operational oversight responsibilities for the company in her new role.