Culp Inc Posts $3.4M Q3 Loss as Revenue Falls 8.2% to $48.0M

Culp Inc, a textile and upholstery manufacturer, reported a net loss of $3.4 million for the third quarter ended February 1, 2026, compared to a net loss of $4.1 million for the quarter ended January 26, 2025. Revenue for the quarter fell 8.2% to $48.0 million from $52.3 million in the prior-year period. Read more earnings reports.

For the nine months ended February 1, 2026, the company posted a net loss of $7.9 million, an improvement from the $16.9 million loss recorded in the first nine months of fiscal 2025. Revenue for the nine-month period declined 7.7% to $151.9 million from $164.5 million.

Quarterly Performance

Gross profit for the third quarter narrowed to $5.3 million from $6.3 million a year earlier, reflecting compressed margins as cost of goods sold reached $42.6 million. The company reported an operating loss of $3.7 million, slightly better than the $3.9 million operating loss in the year-ago quarter.

Selling, general and administrative expenses totaled $8.5 million in the latest quarter, down from $8.6 million in the prior-year period. Interest expense increased to $183,000 from $63,000.

Nine-Month Results

For the nine-month period, gross profit rose to $18.3 million from $17.4 million despite the revenue decline. Operating loss for the period totaled $5.6 million, a substantial improvement from the $16.1 million operating loss in the first nine months of fiscal 2025.

The company recorded income tax expense of $1.9 million for the nine-month period, compared to $635,000 in the prior-year period. SG&A expenses declined to $26.3 million from $27.2 million.

Balance Sheet and Cash Flow

Total assets stood at $120.8 million as of February 1, 2026, down from $127.6 million at January 26, 2025. Cash and cash equivalents increased to $9.7 million from $5.3 million. Inventory grew to $52.2 million from $48.6 million in the prior-year comparable period.

The company generated negative cash flow from operations of $2.3 million for the nine months ended February 1, 2026, compared to negative operating cash flow of $9.4 million in the prior-year period. Cash from investing activities was positive at $1.2 million, while financing activities contributed $5.1 million.

Per Share Data

Diluted loss per share for the third quarter was $0.27, compared to a loss of $0.33 per share in the prior-year quarter. For the nine-month period, diluted loss per share was $0.63, versus a loss of $1.36 per share a year earlier.

Shares outstanding totaled 12.7 million as of February 1, 2026, up slightly from 12.6 million shares at January 26, 2025.