Culp (CULP) investor relations material

Company overview and industry positioning

• Operates in mattress and upholstery fabrics, providing both materials and value-added sewn products to manufacturers.

• Maintains a strategic global supply chain with production anchored in North Carolina and sourcing in five countries.

• Focused on scaling the business and streamlining operations to adapt to current demand cycles.

• Emphasizes product design, innovation, and a blend of family culture with global reach.

Tariff and supply chain management

• Neutralized costing and pricing to current tariff rates through a diversified supply chain.

• Actively pursuing $6–$7 million in IEEPA tariff refunds following a Supreme Court ruling.

• Successfully claimed duty refunds for Haiti shipments under the HOPE/HELP Act.

• Supply chain disruptions from Middle East tensions are being managed through cost analysis and flexible sourcing.

Cost reduction and restructuring initiatives

• Launched Project Blaze to streamline operations and set the stage for future growth.

• Consolidated distribution and manufacturing into a 600,000 sq ft mega facility in North Carolina, reducing leases and increasing flexibility.

• Shifted from a divisional to a functional organizational structure, enabling focused leadership and cost savings.

• Achieved $20 million in cost reductions, mainly through SG&A savings and facility consolidation.

• Exited Canadian facilities, now fully based in the U.S. and other global locations.