Successful Restructuring Plan Completion
The company completed its restructuring plan, reducing fixed costs in the mattress fabrics business and transitioning to an asset-light strategic sourcing model. Annualized savings from this restructuring are expected to be $10 to $11 million.
Growth in Mattress Fabrics Sales
Despite industry projections of an 11% decline in mattress sales, Culp achieved a year-over-year sales increase in its mattress fabrics business during the fourth quarter.
Positive Hospitality and Commercial Markets Performance
Demand in the upholstery fabrics business, specifically in hospitality and commercial markets, remained solid, with sales in these areas constituting approximately 42% of total upholstery sales during the quarter.
Credit Facility Extension
Culp extended its credit facility with Wells Fargo for an additional 3 years, providing liquidity and financing flexibility to support ongoing initiatives.