Culp Inc. has reported its consolidated financial results for the first quarter of fiscal 2026. The company experienced a 10.3% decrease in net sales, totaling $50.7 million compared to $56.5 million in the same period a year ago. This decline was attributed to a 20.4% drop in upholstery sales, while bedding sales remained flat. The company reported a net loss of $231,000, a significant reduction from the $7.3 million loss reported in the same quarter of the previous year. This improvement in net loss is supported by a turnaround in gross profit, which rose to $2.9 million from a gross loss of $326,000 in the previous year's first quarter. The gross profit margin also improved to 14.3% from 9.0%. Culp Inc. noted that the restructuring initiatives in its bedding segment contributed to the improved gross profit figures. The restructuring is now fully completed, and the company expects continued profitability improvement as price adjustments take effect in the second quarter of fiscal 2026. The company continues to face challenges due to overall softness in the home furnishings industry and geopolitical risks, which could impact future sales.