Culp's stock price fell more than 5% due to third-quarter earnings and revenue falling short of expectations and limited guidance

LootboxPhobia · 2026-03-11T23:35:34+00:00

Culp, Inc. reported a third-quarter loss of $0.27 per share and revenue of $48 million, both below expectations, with the stock falling 5.9%. The company cited a sluggish home goods market and adverse weather affecting production. Gross profit declined, but net loss improved. For the future, the company expects sequential sales growth, but guidance remains limited due to macroeconomic uncertainties.

LootboxPhobia

2026-03-11 23:35:34

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Hickory, North Carolina - Culp, Inc. (NASDAQ:CULP) reported third-quarter results that fell short of analyst expectations, with the fabric manufacturer posting a loss of $0.27 per share, compared to the market forecast of a $0.07 loss per share. Revenue was $48 million, also below the expected $54 million, representing an 8.2% decrease from $52.3 million in the same period last year.

Following the earnings release, the stock dropped 5.9%.

The company stated that the home goods industry remains weak, compounded by severe weather that caused its largest factory to lose a week of shipments in January. CEO Iv Culp noted that before weather disruptions, revenue from the bedding business was expected to be flat year-over-year.

“Market weakness continues to be a major issue across the home goods industry, and this dynamic was evident in our quarterly results,” Culp said. He added that the company has used the slowdown to realign its platform, preparing for profit growth when market conditions improve.

Gross profit declined from $6.4 million (12.1% of sales) in the same period last year to $5.3 million (11.1%). The decrease was due to lower sales and adjustments related to excess inventory from restructuring efforts. Net loss improved 17% from $4.1 million last year to $3.4 million.

For fiscal Q4 2026, Culp expects consolidated sales to increase sequentially, with completed restructuring initiatives leading to gross profit improvements. However, due to macroeconomic uncertainties and fluctuations in the tariff environment, the company provided limited guidance, including the uncertainty over the potential refund of previously paid $6-7 million in IEEPA tariffs.

The bedding division reported sales of $27.3 million, down 5% year-over-year, while the home decor division’s sales declined 12% to $20.7 million. As of February 1, 2026, the company maintained liquidity of $27.7 million and an outstanding debt of $18.5 million.

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