Culp (CULP) Fiscal Q1 2027 Earnings Call: Bedding Growth, Debt Reduction
Source Tradingkey
Key Takeaways
- Culp, Inc. reported fiscal Q1 2027 net sales of $54.0 million, up from $50.7 million despite one fewer selling week. Bedding sales increased 13.2% to $31.8 million.
- Reported gross profit rose to $15.4 million, or 28.5% of sales, including approximately $7 million of IEPA tariff recoveries. Excluding those recoveries, gross profit was $8.4 million, or 15.6% of sales, approximately 17% above the prior-year period.
- Net income was $6.0 million, or $0.47 per diluted share, compared with a net loss of $231,000, or $0.02 per diluted share, a year earlier.
- Adjusted EBITDA excluding the tariff recovery and other specified items improved to $566,000 from negative $938,000, reflecting higher bedding sales and restructuring-related efficiencies.
- Net debt declined approximately 70% from the end of fiscal 2026 to $3.1 million. Management’s priority is to reach a net cash position during fiscal 2027.
- For fiscal Q2 2027, management expects sequentially consistent sales volumes, year-over-year sales growth, break-even operating income and accelerating adjusted EBITDA.
Key Financial Data
| Metric | Fiscal Q1 2027 | Prior-year period | Commentary |
|---|---|---|---|
| Net sales | $54.0 million | $50.7 million | Growth despite one fewer selling week |
| Reported gross profit | $15.4 million | $7.2 million | Included approximately $7 million of tariff recoveries |
| Reported gross margin | 28.5% | 14.3% | Benefited materially from tariff recoveries |
| Gross profit excluding tariff recoveries | $8.4 million | $7.2 million | Approximately 17% year-over-year growth |
| Gross margin excluding tariff recoveries | 15.6% | 14.3% | Supported by higher sales and operating efficiencies |
| SG&A expenses | $8.7 million | $9.1 million | Fell to 16.1% of sales from 18.0% |
| Operating income | $6.7 million | $1.6 million | Reported margin increased to 12.4% |
| Non-GAAP operating result excluding tariff recoveries | Loss of $271,000 | Loss of $1.9 million | Significant year-over-year improvement |
| Net income (loss) | $6.0 million | $(231,000) | — |
| Diluted EPS | $0.47 | $(0.02) | — |
| Adjusted EBITDA | $566,000 | $(938,000) | Excludes tariff recovery and other specified items |
| Operating cash flow | $8.1 million | $(695,000) | Helped by tariff recovery, efficiencies and working capital |
| Free cash flow | $7.8 million | $(874,000) | — |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
After its strongest August since 2017, Bitcoin (BTC) has faced renewed volatility in September as hawkish Fed signals and strong jobs data pressure risk assets.Yet, the daily chart has flashed a key b
The US Treasury walked into the bond market on Wednesday with $6 billion. It was triple its usual size, and the biggest such offer in years. The market took one look and sold.While yields were suppose
President Donald Trump said Wednesday that oil prices will not fall until right after the November midterm elections. He tied relief at the pump to an Iran war he expects Tehran to abandon once Americ
Altcoin perpetual futures carried more open interest than Bitcoin’s on September 6, the first such flip since December 2024, according to Coinalyze data. That crossover comes even as Bitcoin’s own ral
US stocks fell for a third straight session on Wednesday. Rising Treasury yields and another jump in oil prices weighed on sentiment.The Dow Jones Industrial Average dropped 405.41 points, or 0.77%, t
