CULP INC

Completed Restructuring Provides Foundation for Improved Operating Performance

in Fiscal 2026

HIGH POINT, N.C. (June 25, 2025)– Culp, Inc. (NYSE: CULP), a leading provider of fabrics for bedding and upholstery fabrics for residential and commercial furniture, today reported financial and operating results for the fourth quarter and fiscal year ended April 27, 2025.

Iv Culp, President and Chief Executive Officer, commented, “Fiscal 2025 was a year of heavy lifting across CULP, and we are encouraged by the results of our work to transform our cost structure and better position the company for growth. Given the challenging revenue environment and tariff-related uncertainty that is evident and continues across the industry, we concentrated on what we can control and successfully executed on a variety of aggressive initiatives that should drive better operating leverage, particularly as market conditions improve. We also continued to play to our strength in providing the highest levels of service, product offerings and supply chain optionality to our customers, and we believe that our market share remains strong and continues to expand within certain targeted segments.

“The recent sale of our manufacturing facility in Canada capped the completion of the restructuring plan we announced last year including facility closures and consolidations in our mattress fabrics division, as well as a transition to an asset-light, strategic sourcing model for certain major product lines. We are pleased to see the benefits of that plan reflected in our financial results, with a lower fixed cost base and increased efficiencies in our mattress fabrics division helping to drive improvement during the year and significantly better overall operating results for the quarter despite the pressured macro conditions.

“In light of the continuing market softness, along with heightened tariff uncertainty, we are taking additional action including the integration of our two operating divisions, Culp Upholstery Fabrics and Culp Home Fashions, into a unified CULP-branded business that enhances our ability to anticipate and react to market trends as well as optimize resources across our organization. We expect this more centralized approach to improve scale efficiencies throughout CULP and to generate additional savings as we progress through fiscal 2026. In addition, the related facility consolidation activity should elevate the operating profile of our upholstery fabrics business, which continues to achieve profitability in the face of historically low demand for home furnishings and challenges from high tariff rates on China-produced goods. We also recently extended our credit facility with Wells Fargo for an additional three years, which we believe will provide us with additional flexibility and liquidity as needed to fund and grow our business going forward.

Mr. Culp concluded, “I remain incredibly proud of our team’s ability to respond to the changing needs of our business. Thanks to their hard work and dedication, we move into our new fiscal

-MORE- year with a leaner, more flexible global platform enabling us to quickly respond to market and tariff fluidity, as well as a highly resilient business model well-positioned to seize opportunities and meet the challenges ahead."