Culp, Inc. (NASDAQ: CULP) reported its financial results for the first quarter of fiscal year 2027, which ended August 2, 2026. The company announced consolidated net sales of $54.0 million for the period, representing a year-over-year increase of 6.5%. Despite the growth, the company noted that the quarter contained one fewer selling week compared to the prior year.
On a segment basis, the bedding business generated $31.8 million in sales, a 13.2% increase over the prior-year period. Conversely, sales in the upholstery segment were $22.2 million, generally flat compared to the prior year despite the shorter selling period.
Financial performance metrics showed significant improvement. Consolidated gross profit was $15.4 million, or 28.5% of sales, compared to $7.2 million, or 14.3% of sales, in the prior year. Net income for the quarter was $6.0 million, or $0.47 per diluted share, compared to a net loss of $231 thousand, or $(0.02) per diluted share, in the prior year.
The company also reported a substantial reduction in its balance sheet leverage. Net debt decreased by over 70% to $3.1 million at the end of the first quarter, down from $10.9 million at the end of fiscal 2026. At quarter-end, the company maintained $10.2 million in total cash and $13.3 million in total debt, resulting in total liquidity of $29.4 million.
Regarding future guidance, Culp stated that it expects consistent sequential sales volumes in the second quarter, with some growth over the prior-year quarter. The company anticipates achieving break-even operating income for the second quarter and expects accelerating adjusted EBITDA results.
