Culp, Inc. (CULP): history, ownership, mission, how it works & makes money

A Brief History of Culp, Inc. (CULP)

Company Overview

Culp, Inc. (NASDAQ: CULP) is a leading textile manufacturer known primarily for its production of upholstery fabrics and mattress ticking. Founded in 1972, the company has established a strong presence in the textile industry, particularly in North America.

Founding and Early Years

Initially incorporated as Culp Fabrics, the company began with a focus on producing woven fabrics for the home furnishings market. By 1980, Culp had expanded its operations, leading to increased revenues and market share.

Public Offering

In 1996, Culp, Inc. went public, listing on the NASDAQ under the ticker symbol CULP. The initial public offering (IPO) raised approximately $10 million, which allowed the company to fund further expansion.

Acquisitions and Expansion

Over the years, Culp has expanded through strategic acquisitions:

• Culp acquired the assets of a mattress ticking division from a competitor in 2005.
• In 2013, the company acquired the assets of a major supplier, which significantly boosted its production capabilities.
• The 2016 acquisition of a European fabric manufacturer enhanced Culp's international presence and product offerings.

Financial Performance

As of the fiscal year ending 2023, Culp, Inc. reported:

Market Presence

Culp operates through two primary segments:

• Upholstery Fabrics
• Mattress Ticking

The company serves a diverse customer base across North America, South America, and Europe.

Recent Developments

In 2023, Culp, Inc. launched a new line of eco-friendly fabrics, responding to increasing consumer demand for sustainable products. This initiative is part of the company's commitment to sustainability and innovation in textile manufacturing.

Stock Performance

As of the end of Q3 2023, CULP stock was trading at approximately $8.50 per share, reflecting a market capitalization of about $95 million.

Industry Trends

The textile industry has seen fluctuations due to global supply chain issues and changing consumer preferences. Culp's adaptability has positioned it to navigate these challenges effectively.

A Who Owns Culp, Inc. (CULP)

Ownership Structure

The ownership of Culp, Inc. (CULP) is divided among various institutional and individual shareholders. The company operates in the textile manufacturing industry, primarily producing mattress fabrics and upholstery materials. As of the latest reported data, the ownership breakdown is as follows:

Major Institutional Shareholders

Several institutional investors hold significant stakes in Culp, Inc. The following table summarizes the major institutional shareholders:

Insider Ownership Details

Insider ownership is another significant aspect of Culp, Inc.'s ownership structure. The following table provides information about the top insiders:

Recent Stock Performance

Culp, Inc.'s stock performance can significantly influence ownership dynamics. The following metrics represent the company's recent stock performance:

Shareholder Meetings and Voting Rights

Culp, Inc. conducts annual shareholder meetings where investors can exercise their voting rights. The following outlines the voting rights associated with various classes of shareholders:

• Common shareholders have one vote per share owned.
• Institutional shareholders are typically encouraged to participate in voting.
• Insiders often have a higher engagement in corporate governance matters.

Future Ownership Trends

Ownership trends can reflect investor confidence and market conditions. The following factors are anticipated to influence future ownership distributions:

• Market performance and financial health of Culp, Inc.
• Changes in institutional investor strategies towards textile stocks.
• Potential mergers or acquisitions that might alter ownership stakes.

Culp, Inc. (CULP) Mission Statement

Corporate Vision

The mission statement of Culp, Inc. emphasizes the commitment to providing innovative and quality textile solutions. The vision highlights a focus on customer relationships, sustainability, and a dedication to excellence in the textile industry.

Core Values

• Quality: Aiming to exceed customer expectations through superior products.
• Innovation: Constantly evolving to meet market demands and enhance product offerings.
• Sustainability: Committed to environmentally responsible practices.
• Integrity: Conducting business with the highest ethical standards.
• Community Engagement: Supporting local communities and fostering positive social impact.

Market Position

Culp, Inc. operates primarily in the upholstered furniture and bedding markets, serving customers in North America and internationally. As of the latest financial report, Culp, Inc. achieved a revenue of $171.5 million in FY 2023.

Financial Performance Metrics

Strategic Objectives

Culp, Inc. aims to drive growth through the following strategic objectives:

• Expand product offerings in both existing and new markets.
• Enhance operational efficiency to improve profit margins.
• Invest in technology and innovation for product development.
• Strengthen relationships with key customers through improved service delivery.
• Commit to sustainable practices and reduce the environmental impact of production.

Recent Initiatives

In 2023, Culp, Inc. launched several initiatives directed at improving sustainability and enhancing customer engagement:

• Introduced eco-friendly fabric lines.
• Implemented a customer feedback system to enhance service quality.
• Engaged in community outreach programs to support local economies.

Industry Recognition

Culp, Inc. has received several accolades for its commitment to quality and innovation, including:

• 2023 Excellence in Fabric Award from the American Textile Manufacturers Institute.
• Recognition for sustainability practices by the Sustainable Furnishings Council.

Future Outlook

With an eye towards future growth, Culp, Inc. is focused on expanding its market presence and driving profitability. The company plans to invest in research and development to stay ahead of industry trends and customer needs.

Conclusion on Mission Statement Impact

The mission statement of Culp, Inc. serves as a critical foundation for its corporate strategy, reinforcing its commitment to quality, sustainability, and innovation in the textile industry.

How Culp, Inc. (CULP) Works

Overview of Culp, Inc.

Culp, Inc. (NASDAQ: CULP) is a leading manufacturer and marketer of upholstery and mattress fabrics. The company operates primarily through two segments: the Upholstery Fabrics segment and the Mattress Fabrics segment.

Upholstery Fabrics Segment

The Upholstery Fabrics segment designs, produces, and distributes a wide range of fabric products. As of the most recent financial statements, this segment generated approximately $58.9 million in revenue for the fiscal year 2023, constituting around 60% of the company’s total revenue.

Mattress Fabrics Segment

The Mattress Fabrics segment focuses on materials for bedding and mattresses. This segment reported revenues of approximately $39.2 million for the same fiscal year, making up about 40% of total sales.

Financial Performance

In the fiscal year ended January 29, 2023, Culp, Inc. reported a total revenue of $98.1 million. The company experienced a net loss of $2.4 million or ($0.14) per diluted share.

Production Facilities

• Location of Upholstery Fabrics Facilities:
• High Point, North Carolina
• Mexico
• Location of Mattress Fabrics Facilities:
• Conover, North Carolina
• China

Market Strategy

Culp, Inc. employs a strategy focused on innovation and sustainability. The company invests significantly in digital printing technology, enhancing design capabilities while minimizing environmental impact.

Customer Base

The company serves a diverse array of clients, including major furniture manufacturers and bedding producers across North America and international markets. Approximately 65% of sales are generated from customers in the United States.

Recent Developments

In 2023, Culp, Inc. launched a new line of eco-friendly fabrics, which received positive feedback in the market. The company also reported a strategic partnership with a leading retail chain to increase fabric availability.

Stock Performance

As of October 20, 2023, Culp’s stock price was approximately $4.50 per share, with a market capitalization of around $76 million. The company's stock has fluctuated between a high of $6.25 and a low of $3.50 over the past year.

Competitive Landscape

Culp, Inc. competes with several key players in the textile and fabric industry, including:

• Mohawk Industries
• Carpenter Co.
• Fabricut

Conclusion of Financials

The company maintains a strong balance sheet with total assets of $90 million and total liabilities of $30 million, indicating a solid equity position.

How Culp, Inc. (CULP) Makes Money

Revenue Streams

Culp, Inc. generates revenue primarily through the manufacturing and sale of textile products. The company operates in two main segments: Cut and Sew Upholstery and Mattress Fabrics.

Cut and Sew Upholstery Segment

This segment includes the production of upholstery fabrics used in furniture, automotive, and other applications. For the fiscal year 2023, the Cut and Sew Upholstery segment reported revenues of approximately $76 million.

Mattress Fabrics Segment

The Mattress Fabrics segment provides a range of fabrics for mattress manufacturers. In fiscal year 2023, this segment accounted for around $224 million in revenue.

Geographic Revenue Distribution

The company’s sales are distributed across various geographic regions as follows:

Cost of Revenue

The total cost of revenue for Culp, Inc. in fiscal year 2023 was reported as $200 million, indicating a gross profit of $110 million.

Operating Expenses

Operating expenses for Culp, Inc. totaled approximately $75 million for fiscal year 2023. This includes selling, general, and administrative expenses.

Net Income

For the fiscal year 2023, Culp, Inc. reported a net income of approximately $19 million, showcasing a net profit margin of around 6.1%.

Market Trends and Industry Position

Culp, Inc. competes in the highly fragmented textile industry. The global market for upholstery fabrics is projected to grow at a CAGR of 4.5% from 2022 to 2027.

Investment in Technology

The company has been investing in advanced manufacturing technology to enhance productivity and efficiency. In 2023, capital expenditures reached $10 million.

Key Customers

Culp, Inc. has established long-term relationships with several leading furniture and mattress manufacturers, which contributes significantly to its stable revenue stream. Key customers include:

• Tempur Sealy International
• La-Z-Boy Incorporated
• Ashley Furniture Industries

Future Prospects

Looking forward, Culp, Inc. aims to expand its product offerings and enhance market penetration, especially in fast-growing international markets.

Financial Performance Summary (FY 2023)