HIGH POINT, September 12 — Culp, Inc. swung back into profit for the quarter ended August 2, 2026, and a one-time U.S. import tariff refund did much of the work. The North Carolina textile manufacturer reported net income of $6.0 million for the quarter, according to its Form 10-Q filed with the U.S. Securities and Exchange Commission. A year earlier, the same quarter produced a net loss of $0.2 million.
Diluted earnings per share came in at $0.47, against a diluted loss of $(0.02) per share in the prior-year period. The tariff refund is the number to watch.
Culp booked a one-time $6.9 million refund of previously paid U.S. import tariffs in cost of sales, and the company said it completed the refund process during the quarter, receiving the full amount in cash after final approval. That makes the recovery realized liquidity rather than a remaining contingent claim.
Sales and gross profit
Net sales rose to $54.0 million from $50.7 million a year earlier. Bedding led the way with $31.8 million in sales, while upholstery was roughly flat at $22.2 million. Gross profit climbed to $15.4 million from $7.2 million, a gain the filing attributes in part to the tariff refund.
Operating cash flow improved to $8.1 million, compared with a $0.7 million use of cash in the year-earlier quarter, helped by lower inventories and working capital changes.
Balance sheet
Total assets stood at $108.5 million, with shareholders’ equity of $54.2 million. Culp carried $13.3 million of lines of credit outstanding, all maturing within one year. The company said it was in compliance with its covenants and had $17.7 million of borrowing availability under its $30 million asset-based revolver.
It also remains subject to a full U.S. deferred tax valuation allowance of $27.7 million. Culp is incorporated in North Carolina and headquartered at 410 W.
English Road, 5th Floor, High Point, North Carolina 27262. Its common stock, par value $0.05 per share, trades on the Nasdaq Stock Market LLC under the symbol CULP. The company is a non-accelerated filer and a smaller reporting company under SEC definitions.
It confirmed it has filed all required reports under Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and has been subject to those filing requirements for the past 90 days. The quarterly report was filed on Form 10-Q under Commission File No. 1-12597; Culp’s I.R.S.
Employer Identification No. is 56-1001967, and its registered telephone number is (336) 889-5161. No forward-looking guidance figures, executive quotes, or segment-level profit breakdowns beyond the sales and gross profit figures above were included in the filing. For the quarter ahead, the question is how much of the earnings improvement holds once the tariff refund drops out of the comparison, and whether the bedding segment’s sales lead can be sustained as upholstery stays flat.
