Culp, Inc. (NYSE:CULP) is a key player in the fabric industry, specializing in materials for bedding and upholstery. The company operates in a competitive market, facing challenges from both domestic and international players. Despite these challenges, Culp continues to focus on innovation and quality to maintain its market position.
On September 10, 2025, Culp reported an earnings per share (EPS) of -$0.02, surpassing the Zacks Consensus Estimate of -$0.12. This marks a significant improvement from the previous year's EPS of -$0.37. Despite the better-than-expected EPS, Culp's revenue of $50.7 million fell short of the estimated $54.3 million, as highlighted by Zacks.
The company's revenue performance was impacted by ongoing market softness and a tariff-driven pause in residential upholstery shipments from China. This external factor contributed to the revenue shortfall, despite the company's efforts to manage costs and improve profitability.
Culp's financial ratios provide insight into its current financial health. The company has a negative price-to-earnings (P/E) ratio of -3.09, indicating negative earnings. However, the price-to-sales ratio of 0.28 suggests that investors are paying 28 cents for every dollar of sales, which is relatively low.
The enterprise value to sales ratio is 0.30, and the enterprise value to operating cash flow ratio is -3.57, highlighting challenges in generating positive cash flow. Despite these challenges, Culp maintains a low debt-to-equity ratio of 0.17, indicating a conservative approach to debt. The current ratio of 1.78 suggests a strong ability to cover short-term liabilities.
