The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Brian Gordon - Water Tower Research LLC - Analyst
: Good morning, everyone. I guess, first question, could you talk a little bit about the cadence of business across mattress, residential upholstery,
and the commercial upholstery and fabric side of the businesses?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
JUNE 26, 2025 / 1:00PM, CULP.N - Q4 2025 Culp Inc Earnings Call
Question: Brian Gordon - Water Tower Research LLC - Analyst
: Yeah.
Question: Brian Gordon - Water Tower Research LLC - Analyst
: That makes sense. Do you have any sense on sort of like how tariffs specifically have been impacting the end customer demand across your
segments?
Question: Brian Gordon - Water Tower Research LLC - Analyst
: Yeah. So I have a follow-up question, though, on the pricing action. So you guys talked about $2.5 million in respect to that over the course of the
year. What are the revenue assumptions that are baked into those gains at this point?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
JUNE 26, 2025 / 1:00PM, CULP.N - Q4 2025 Culp Inc Earnings Call
Question: Brian Gordon - Water Tower Research LLC - Analyst
: Okay, that makes sense. In terms of all of the cost savings that you've outlined -- and there's obviously several buckets. There's the restructuring
that you first announced a year ago. There's the reorganization of Project Blaze, and then there are the price adjustments.
If I try and think about how that's going to impact the bottom line quarter by quarter, if my arithmetic is right, we're going to see something like
a gain of like maybe [$2.5 million] or so Q1 up to $4 million -- maybe even $4 million-plus, by Q4. Is that logic right? Is that how we should be
thinking about this?
Question: Brian Gordon - Water Tower Research LLC - Analyst
: All actions combined. Just trying to flip that to a quarterly benefit as we progress across '26.
Question: Brian Gordon - Water Tower Research LLC - Analyst
: Okay. And (multiple speakers) --
Question: Brian Gordon - Water Tower Research LLC - Analyst
: All right, thank you. Next question may be more for Ken. One of the things that you guys mentioned in the release was the change in your approach
to inventory markdowns. Could you maybe explain a little bit what's going on there? And how that impacted the quarter, and how that might
impact '26 as we move through the year?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
JUNE 26, 2025 / 1:00PM, CULP.N - Q4 2025 Culp Inc Earnings Call
Question: Brian Gordon - Water Tower Research LLC - Analyst
: Okay. That's very helpful. This is maybe another question for you, Ken. Given the macro environment and given liquidity and cash flow projections
at this point, how aggressive are you guys going to be on the debt paydown side?
Question: Brian Gordon - Water Tower Research LLC - Analyst
: Great. Thank you.
Question: Brian Gordon - Water Tower Research LLC - Analyst
: Yeah, certainly, I would agree with that. One final question maybe for you, Iv, and then maybe for Tommy as well. What are the growth investments
in terms of like new products and markets that you're going to be focused on prioritizing in '26?
And where do you think, especially, do you have the best opportunity to gain share? I mean, it sounds like both hospitality and mattress on that
side of the business would be maybe the bright spots for share gains.
Question: Brian Gordon - Water Tower Research LLC - Analyst
: Yeah. Thank you. That all certainly makes sense, and best of luck with the quarter.
| 
