Slide 1: Positioning for the Future: Culp Restructuring Plan – March 2025
Positioning for the Future Culp Restructuring Plan – March 2025 1 Exhibit 99.3
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934).
Slide 3: Financial and Business Implications of Restructuring Plan
Financial and Business Implications of Restructuring Plan Consolidate CHF North American Fabric Operations Wind Down and Close Operations in Quebec, Canada Move Knitting and Finish Capacity to Stokesdale, NC Optimize Capacity and Overhead in North America in One Facility (NC) Transition Mattress Fab
Slide 4: Steps and Timing of Restructuring: Measuring Success
Second Half Fiscal 25 (November 2024 – April 2025) Fiscal Q2 25 (August – October 2024) Fiscal Q1 25 (May – July 2024) Steps and Timing of Restructuring: Measuring Success Major restructuring actions announced in early May Communicated phased closure of Canadian mattress fabrics facility to affected
Slide 5: Liquidity, Access to Capital to be Strengthened
Liquidity, Access to Capital to be Strengthened Cash and access to liquidity remains solid Utilizing some borrowing during fiscal 2025 to fund restructuring activity and worldwide working capital to grow the business ($5.4 million in borrowings outstanding under China credit line as of 1/26/2025) Fu
Slide 6: Restructuring Puts CHF on Path to Segment Breakeven
Restructuring Puts CHF on Path to Segment Breakeven Hypothetical pro forma model of projected annualized savings on CHF profitability post-restructuring, assuming the same level of sales from fiscal 2024 (model is before any corporate allocation at segment level) Projected annualized cost and produc
Slide 7: Mattress Fabrics: Current Industry Demand Near Previous Recession Bottom Levels
Mattress Fabrics: Current Industry Demand Near Previous Recession (2009) Bottom Levels Current level of domestic unit production of 18 million units near 2009 recession levels Unique factors affecting current cycle Post Covid stimulus, at home demand pull forward Supply chain challenges and cost pre
Slide 8: Restructuring of Mattress Fabrics Segment
Restructuring of Mattress Fabrics Segment Strengthened leadership team focused on profitable growth Leverage long history of success within the bedding industry Drive operating efficiencies: Optimize manufacturing and sourcing capabilities for customer reactivity and improved cost advantage Phased w
Slide 9: Profitable Upholstery Fabrics Segment With Key Initiatives Underway
Profitable Upholstery Fabrics Segment With Key Initiatives Underway to Accelerate Performance Accelerating Segment Performance Leading position in a fragmented market Asset light model to maintain flexibility and product profit performance Growing innovative performance products LiveSmart® performan
Slide 10: What Gives Culp Confidence in Restructuring Plan / Recovery?
What Gives CULP Confidence in Restructuring Plan / Recovery? Key Success Factors Experienced leadership team focused on profitable growth Successfully navigated significant restructuring of CUF beginning in early 2000’s Solid available liquidity Strong relationships with key customers and long-term
Slide 11: Restructuring Plan Driving Operating Improvement in a Challenging Sales Environment
Restructuring Plan Driving Operating Improvement in a Challenging Sales Environment for the Industry Total Revenue and Total Gross Profit referenced in the table above constitute Culp, Inc.’s consolidated net sales and consolidated gross profit, respectively, for the fiscal year 2024 and fiscal year
Slide 12: Culp
CULP