Q3 Fiscal 2026 Supplemental Information

THIAD QUAATKA FY2G:

SUPPLKMKNTAL INFOAMATION

M a r c h 202G

BUSINKSS OVKAVIKW & STAATKGIC ACTIONS

CULP, INC.

(NASDAQ: CULP)

One of North America's largest marketers of mattress fabrics and sewn covers for bedding and upholstery fabrics and sewn kits for residential, commercial, and hospitality furniture and other applications.

Global customer base of leading bedding and furniture companies, including fabrics produced at manufacturing facilities in the United States, China, Haiti, and Vietnam, and fabrics sourced through a dedicated supply relationship in Turkey and other suppliers.

*Year ended April 27, 2025

B E D D I N G S E G M E N T

• Market leader in mattress fabrics, sewn covers and related products

• Strong U.S., nearshore, and offshore supply chains

• Majority of assets in U.S.

• 53% of Culp Fiscal 2025 revenue

  U P H O L S T E R Y S E G M E N T

• Market leader in fabrics and sewn kits for residential and commercial/hospitality furniture and window treatment markets

• Asset-light sourcing model

• Primarily Asia supply chain

• 47% of Fiscal 2025 revenue

  
  
  

  4

  CULP BKDDING

  Large-Scale Leader in Consolidated Industry with Significant Barriers to Entry

  I N N O V A T I V E P R O D U C T S C O M P E T I T I V E S T R E N G T H S G R O W I N G M A R K E T S H A R E

• Knitted fabrics

• Sewn mattress covers

• Damask woven fabrics

• Bedding accessories

• Wide range of fashionable styles and price points

1 Management estimates for domestic mattress fabric and cover market

2 Culp top 2 player

• One of the largest producers of mattress fabrics in North America

  Market Size

  $500-600M 1

  Culp Share 20-25%2

  
  
  

• Global manufacturing and sourcing:

  • U.S., China, Vietnam, Haiti, Turkey

• Strong U.S. base and global footprint provide competitive advantage in current trade/tariff environment

• Innovative designs capitalizing on sleep trends, cooling and sustainability

  CULP UPHOLSTKAY

  Market Leader Known for Creative Designs and Innovative Products, with Asset-Light Operating Model

  I N N O V A T I V E P R O D U C T S C O M P E T I T I V E S T R E N G T H S G R O W I N G M A R K E T S H A R E

  • Upholstery fabrics and sewn kits for residential furniture markets

  • Upholstery fabrics for hotel, theater, office, retail and other commercial and hospitality furniture markets

  • Window treatments, drapery and roller shades for hospitality and other commercial markets

  • Outstanding design capabilities

    Market Size

    $1.5 -$2.5 Billion1

    Culp Share 8-10%2

    
    
    

  • Asset-light flexible global platform provides competitive advantage in current trade/tariff environment

  • Innovative performance fabrics including proprietary LiveSmart brand

  • Emphasis on sustainability and health/wellness applications

    1 Management estimates for domestic upholstery fabric market

    2 Culp top 5 player

    LIQUIDITY & CAPITAL BASK

    Top Priority to Aggressively Manage Liquidity/FCF and Debt

    TOTAL LIQUIDITY	As of 2/1/2026 (in millions)
    Cash	$9.7
    U.S. ABL Availability	$13.7
    China Credit Line Availability	$4.3
    Total Liquidity	$27.7
    Estimated Proceeds from Canadian Real Estate Sale*	$3.0
    Total Liquidity Including Future Real Estate Sale Proceeds*	$30.7

    *Estimated proceeds net of all taxes and commissions, to be received in Fiscal 2026.

    B A L A NC E S HEET H I G HL I G H T S

    • Liquidity in place to navigate current environment.

    • Recently extended domestic credit facility for additional three years at market rates.

    • Owned U.S. real estate with estimated value of ~$40-$45 million provides significant source of additional liquidity if needed.

    • U.S. Federal NOL carryforwards totaling ~$88.1 million as of April 27, 2025.

    • Tangible book value of $3.94/share (as of 2/1/26) understated due to owned real estate and NOLs.

    • Recent borrowings primarily used to fund restructuring/integration initiatives and worldwide working capital as well as take advantage of favorable rates and availability in China.

    • Restructuring and additional actions in FY26 to significantly lower expected operating costs and cash burn at current low sales levels to navigate industry softness.

      AKSTAUCTUAKD FOA PAOFITABILITY ACAOSS MAAKKT CYCLKS

      Completed Fiscal 2025

      A C TI O N S

      Consolidated North American Bedding Operations

      • Closed manufacturing operations and sold facility in Quebec, Canada

      • Moved knitting and finish capacity to owned U.S. facility (North Carolina)

      • Optimized capacity and overhead in owned U.S. facility (North Carolina)

      • Transitioned damask mattress fabric product lines to strategic sourcing model

OU T COME S

• $1 Million Reduction in Administrative SG&A Expenses Total Restructuring & Related Charges: $9.4 Million Projected Proceeds from Asset Sales & Related Items

  • $3-3.5 Million from sale of Canada facility

  • ~ $2.3 Million from sale of excess equipment, termination of Haiti lease, and other items

  • All offset cash restructuring charges

FISCAL 202G

INTKGAATION & ADDITIONAL ACTIONS

Cost and Organizational Actions Strengthen Foundation

• Division Presidents transitioned to Company-wide Chief Commercial Officer and Chief Operating Officer

• Consolidated operations, talent and resources to better serve home furnishings industry

• Creates a leaner and more agile organization better equipped to respond to customer needs and market trends

• ~ $1 million annualized savings and operating improvement

• Impact to Results: Beginning Q2

  Consolidated USA Upholstery Warehousing/Distribution

  • Relocated leased facility in Burlington, NC into owned facility in Stokesdale, NC

  • ~ $1.7 million annualized savings from exited lease, reduced headcount and synergized operations

  • Impact to Results: Beginning Q4

    Consolidated and Streamlined Read Window Operations

  • Relocated leased facility in Knoxville, TN into owned facility in Stokesdale, NC and increased sourcing strategies

  • ~$800 thousand annualized savings from exited lease, reduced headcount and synergized operations

  • Impact to Results: Beginning Q4

    Price Action to Address Tariff Uncertainty and Rationalize Margins

  • ~ $2.5 million annualized margin improvement in bedding segment

  • Timing: Phased in beginning Q2

    Additional Cost Reduction and Efficiency Actions Including Reduction of China Leased Facility Footprint

  • ~$2 million anticipated annualized savings

  • Impact to Results: Beginning Q4

• $8 Million Total Annualized Additional Benefits
  
  

  IMPACTS OF AKSTAUCTUAING & ADDITIONAL ACTIONS

  Action	Projected Annualized $ Impact & Timing	Financial Impact
  FY25 Restructuring Initiatives	$10 to $11 Million / completed	COGS/SG&A
  FY25 Administrative SG&A Rationalization	~ $1 Million / completed	SG&A
  FY26 Division Integration	~ $1 Million / completed	SG&A
  FY26 Consolidation of U.S. Upholstery Distribution Operations	~ $1.7 Million / Q4	SG&A
  FY26 Consolidation of Read Window Operations	~ $800 Thousand / Q4	COGS
  FY26 Additional Actions Incl. Reduction of China Facility Footprint	~ $2 Million / Q4	COGS/SG&A
  Total Cost/Efficiency Actions	~ $17.5 Million
  FY26 Pricing Initiatives	~ $2.5 Million / implemented	REV/GP
  Total FY25/FY26 Actions & Initiatives	~ $20 Million

  ; BBC

  TAAIFF IMPACTS & MITIGATION

  • CULP Total Duties and Tariffs CY 2025 to Date: ~ $15 million

  • Tariff Landscape After U.S. Supreme Court Decision Invalidating IEEPA Tariffs Currently Favorable Compared to Recent Prior Periods

  • Recent Pricing Action Covering Cost of Current Applicable Tariffs, Including New Section 122 Tariffs

  • Balanced Global Platform with U.S., Nearshore and Offshore Options Provides Strategic Advantage in Current Global Trade and Tariff Landscape

W HKAK W K AAK

U S A · T U R K EY · C H IN A · V IET N A M · H A IT I

CUAAKNT MAAKKT CONDITIONS

CONSUMKA CONFIDKNCK

Source: University of Michigan, University of Michigan: Consumer Sentiment [UMCSENT], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/UMCSENT, Feb 20, 2026

HOUSING ACTIVITY

Source: National Association of Realtors; Trading Economics Source: MBA and Wells Fargo Economics Source: National Association of Realtors and Wells Fargo Economics

30-YKAA MOATGAGK AATKS

Source: Freddie Mac, 30-Year Fixed Rate Mortgage Average in the United States [MORTGAGE30US], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/MORTGAGE30US, March 5, 2026.

BKDDING: CUAAKNT MAAKKT CYCLK

Indications that extremely low demand may be coming to end

Annual U.S.-Produced Mattress Unit Volume Trends

Unit Shipments of Mattresses

Source: ISPA Annual Sales Survey & ITC Mattress Imports Data for 2019-2024, and ISPA Forecast for 2025-2027

* Includes U.S.-produced and import mattresses and stationary foundations

BKDDING: PAIOA INDUSTAY DOWNTUANS

UBS Global Research: Downturns Since 1980 Have Never Exceeded 4 Years and Were Followed by Periods Averaging 4% Growth

Source: Almost Done Tossing and Turning - Assuming Coverage of the U.S. Mattress Industry, UBS Global Research © UBS 2025. All rights reserved.

18

INVKSTMKNT HIGHLIGHTS

INVKSTMKNT HIGHLIGHTS

NASDAQ: CULP

• Well-established market position in multiple billion-dollar industries

• Experienced and streamlined leadership team focused on profitable growth

• Newly restructured operating platform and additional integration actions completed in FY26

• Global production and sourcing capabilities providing strategic options for customers to manage supply chain and navigate tariff and trade regulations

• Strong relationships with key customers and long-term suppliers

• Emphasis on design creativity and product innovation

• Market position improving with solid placements priced in line with current costs

• Consistent improvement in operating performance for bedding segment in FY25 and expected year-over-year improvement in FY26, in very difficult demand environment

• Available liquidity to support growth and manage industry and global uncertainty

20