Culp, Inc. reported fourth quarter fiscal year 2026 consolidated net sales of $51.6 million, a 7.6% increase from the previous quarter and a 6% increase year-over-year. The bedding segment showed significant strength with sales up approximately 12% sequentially and 12.5% year-over-year, while the upholstery segment saw a slight sequential increase of 2.1% but a year-over-year decrease of 2.5%. Consolidated gross profit for the quarter was $6.8 million (13.2% of sales), a 210 basis point improvement sequentially, attributed to higher sales and cost-saving initiatives. The company reported a GAAP consolidated loss from operations of $1.6 million for the quarter, an improvement from $3.7 million in the prior quarter, and a net loss of $2.2 million, or $0.18 per diluted share. For the full fiscal year 2026, consolidated net sales were $203.5 million, a 4.6% decrease from the prior year. The full-year GAAP consolidated loss from operations was $7.2 million, an improvement from $18.4 million in the prior year. Culp expects to recover approximately $7 million in IEEPA tariff refunds in the first quarter of fiscal year 2027, which is anticipated to significantly reduce net debt and improve liquidity. The company anticipates breakeven to positive adjusted EBITDA for the first quarter of fiscal year 2027, excluding the benefit of tariff refunds.