CULP INC

The order backlog for our mattress fabric segment is not a reliable predictor of future shipments because the majority of sales in that segment are made on a just-in-time basis.

Although it is difficult to predict the amount of order backlog that is “firm” in our upholstery fabrics segment, we have reported the portion of the upholstery fabric backlog from customers with confirmed shipping dates within five weeks of the end of the fiscal year. As of April 27, 2025, the portion of the upholstery fabric segment backlog with confirmed shipping dates prior to June 2, 2025, was $6.5 million, compared with $11.7 million as of the end of fiscal 2024 (for confirmed shipping dates prior to June 3, 2024). The decline in the order backlog for our upholstery segment for this period is primarily due to a large residential customer concentrating more of its annual ordering activity in the prior year period for delivery in the first quarter of fiscal 2025. We currently expect this customer's ordering activity to be spread more consistently over the course of fiscal 2026.