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SEPTEMBER 10, 2026 FIRST QUARTER FY27: SUPPLEMENTAL INFORMATION
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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). Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements. Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often but not always characterized by qualifying words such as “expect,” “believe,” “will,” “may,” “should,” “could,” “potential,” “continue,” “target,” “predict”, “seek,” “anticipate,” “estimate,” “intend,” “plan,” “project,” and their derivatives, and include but are not limited to statements about expectations, projections, or trends for our future operations, strategic initiatives and plans, restructuring and integration actions, production levels, new product launches, sales, profit margins, profitability, operating (loss) income, capital expenditures, working capital levels, cost savings (including, without limitation, anticipated cost savings from restructuring and integration actions), income taxes, SG&A or other expenses, pre-tax (loss) income, earnings, cash flow, and other performance or liquidity measures, as well as any statements regarding dividends, share repurchases, liquidity, use of cash and cash requirements, ending cash balances and cash positions, borrowing capacity, investments, potential acquisitions, cash and non-cash restructuring and restructuring-related charges, expenses, and/or credits, net proceeds from restructuring related asset dispositions, future economic or industry trends, public health epidemics, or other future developments. There can be no assurance that we will realize these expectations or meet our guidance, or that these beliefs will prove correct. Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, demand for home furnishings products, consumer confidence, trends in disposable income, and general economic conditions. Decreases in these economic indicators could have a negative effect on our business and prospects. Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect us adversely. Changes in consumer tastes or preferences toward products not produced by us could erode demand for our products. Changes in tariffs or trade policy, including changes in U.S. trade enforcement priorities and our ability to obtain or retain tariff refunds, if any, or changes in the value of the U.S. dollar versus other currencies, could affect our financial results because a significant portion of our operations are located outside the United States. Relatedly, litigation is ongoing as to whether businesses that paid tariffs that were invalidated by the U.S. Supreme Court in February 2026 may receive or retain refunds for those tariffs. Also, economic or political instability in international areas could affect our operations or sources of goods in those areas, as well as demand for our products in international markets. The future performance of our business depends in part on our success in conducting and finalizing acquisition negotiations and integrating acquired businesses into our existing operations. The impact of public health epidemics on employees, customers, suppliers, and the global economy, such as the coronavirus pandemic, could also adversely affect our operations and financial performance. In addition, the impact of potential asset impairments, including impairments of property, plant, and equipment, inventory, or intangible assets, as well as the impact of valuation allowances applied against our net deferred income tax assets, could affect our financial results. Increases in freight costs, labor costs, and raw material prices, including increases in market prices for petrochemical products, can also significantly affect the prices we pay for shipping, labor, and raw materials, respectively, and in turn, increase our operating costs and decrease our profitability. Also, our success in diversifying our supply chain with reliable partners to effectively service our global platform could affect our operations and adversely affect our financial results. Finally, the future performance of our business also depends on our ability to successfully restructure our bedding operations as well as successfully integrate our bedding and upholstery segments and realize the expected benefits of that integration effort, which may not meet our expectations. Further information about these factors, as well as other factors that could affect our future operations or financial results and the matters discussed in forward-looking statements, is included in Item 1A “Risk Factors” in our most recent Form 10-K report filed with the Securities and Exchange Commission. Many of these factors are macroeconomic in nature and are, therefore, beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in this release as anticipated, believed, estimated, expected, intended, planned or projected. The forward-looking statements included in this presentation are made only as of the date of this presentation. Unless required by United States federal securities laws, we neither intend nor assume any obligation to update these forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations or financial results. FORWARD -LOOKING STATEMENTS 2
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BUSINESS OVERVIEW & STRATEGIC ACTIONS
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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, with fabrics produced via comprehensive manufacturing and sourcing capabilities across the United States, China, Vietnam, Turkey and Haiti. Founded: 1972 Headquarters: High Point, North Carolina Initial Public Offering: 1983 Fiscal 2026 Revenue*: $203.5 Million Employees: ~ 870 *Year ended May 3, 2026 TWO LEADING BUSINESSES IN MULTI - BILLION -DOLLAR MARKETS BEDDING SEGMENT • Market leader in mattress fabrics, sewn covers and related products • Strong U.S., nearshore, and offshore supply chains • Significant asset base in U.S. • 57% of Culp Fiscal 2026 revenue UPHOLSTERY SEGMENT • 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 • 43% of Culp Fiscal 2026 revenue 4
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RESTRUCTURED FOR PROFITABILITY ACROSS MARKET CYCLES ACTIONS 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 Consolidated Haiti / DR Cut & Sew Operations into One Facility Reduced Bedding Workforce by ~35% Restructured Upholstery Finishing Operation in China Reduced Administrative SG&A Expenses Completed Fiscal 2025 5 OUTCOMES ~$11 Million in Annualized Cost Savings and Efficiency Gains ~ $1 Million Reduction in Administrative SG&A Expenses Total Restructuring & Related Charges: $9.4 Million Proceeds from Asset Sales & Related Items • ~$3.5 Million from sale of Canada facility • Appx. $2.3 Million from sale of excess equipment, termination of Haiti lease, and other items • All offset cash against restructuring charges
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INTEGRATION & ADDITIONAL ACTIONS STRENGTHEN FOUNDATION Completed Fiscal 2026 and Continuing in Fiscal 2027 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: Commenced Q4 FY26 Price Action to Address Tariff and Petrochemical Uncertainty and Rationalize Margins • ~ $2.5 Million expected annualized margin improvement in bedding segment with timing phased in as of Q2 FY26 • Additional ~ $2.5 Million consolidated impact with timing beginning Q1 of FY27. Additional Cost Reduction and Efficiency Actions Including Reduction of China Leased Facility Footprint • ~$2 million anticipated annualized savings • Impact to Results: Commenced Q4 FY26 Integration of Stand-Alone Divisions to Synergize Business and Leadership Teams • Division Presidents transitioned to Company-wide COO and CCO roles • Consolidated operations, talent and resources to better serve home furnishings industry • Created 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: Commenced Q2 FY26 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: Commenced Q4 FY26 6
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Action Projected Annualized $ Impact & Timing Financial Impact FY25 Restructuring Initiatives ~ $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 / completed SG&A FY26 Consolidation of Read Window Operations $800 Thousand / completed COGS FY26 Additional Actions Incl. Reduction of China Facility Footprint $2 Million / completed COGS/SG&A Total Cost/Efficiency Actions $17.5 Million FY26 Pricing Initiatives $2.5 Million / implemented REV/GP FY27 Pricing Initiatives ~ $2.5 Million / implemented REV/GP Total Restructuring, Integration & Additional Actions ~ $22.5 Million IMPACTS OF RESTRUCTURING, INTEGRATION & ADDITIONAL ACTIONS 7
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OPTIMIZED PLATFORM DRIVING MOMENTUM Consolidated Revenue $50.7m Q1 FY26 $54.0m Q1 FY27 Consolidated Adjusted Gross Profit $ $7.2m Q1 FY26 $8.4m Consolidated Adjusted Gross Profit % 14.3% Q1 FY26 15.6% Q1 FY27 ($1.9m) Q1 FY26 ($271k) Q1 FY27 Consolidated Adjusted EBITDA* ($938k) Q1 FY26 $566k Q1 FY27 *See reconciliation on pages 31-33 of non-GAAP Adjusted Gross Profit, non-GAAP Adjusted Operating Income (Loss) and non-GAAP Adjusted EBITDA to their corresponding GAAP measurements. Consolidated Adjusted Operating Income (Loss)* Q1 FY27 8 YOY Sales / Profitability Growth In Shorter Quarter with One Less Selling Week
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OPTIMIZED PLATFORM DRIVING MOMENTUM Bedding Sales $28.0m Q1 FY26 $31.8m Q1 FY27 Bedding Gross Profit % 10.5% Q1 FY26 13.6% Q1 FY27 Upholstery Sales $22.6m Q1 FY26 Q1 FY27 Upholstery Gross Profit % 18.9% Q1 FY26 18.6% Q1 FY27 $22.2m 9 YOY Sales / Profitability Growth in Bedding and Comparable Upholstery Performance In Shorter Quarter with One Less Selling Week
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TOTAL LIQUIDITY As of 8/2/2026 (in millions) Cash $10.2 U.S. ABL Availability $17.7 China Credit Line Availability $1.5 Total Liquidity $29.4 BALANCE SHEET HIGHLIGHTS Devoted full amount of Q1 tariff recoveries to debt reduction Inventory reduction initiatives and management strategies strengthening balance sheet Liquidity in place to navigate current environment. Extended domestic credit facility through June 2028. Owned U.S. real estate with estimated value of ~$40 million provides significant source of additional liquidity if needed. U.S. Federal NOL carryforwards totaling ~$95.9 million as of May 3, 2026. Tangible book value of $4.24/share (as of August 2, 2026) Recent borrowings primarily used to fund worldwide working capital as well as take advantage of favorable rates and availability in China. Restructuring and additional actions in FY26 significantly lowered expected operating costs and cash burn at current low sales levels to navigate industry softness. LIQUIDITY & CAPITAL BASE Top Priority to Aggressively Manage Liquidity/FCF and Debt 10
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TARIFF IMPACTS & MITIGATION • CULP Total Tariffs/Duties Paid CY 2025 to FYE2026: ~ $17.7 million • Tariff Landscape More Favorable after U.S. Supreme Court Decision Invalidating IEEPA Tariffs, although the Environment Remains Fluid with Pending Section 301 Tariff Analyses Ongoing • Current Product Pricing Covering Cost of Current Applicable Tariffs • Balanced Global Platform with U.S., Nearshore and Offshore Options Provides Strategic Advantage in Current Global Trade and Tariff Landscape ~$7.0 Million in IEEPA Tariff Refunds Received in Q1 FY27 11 AVG EFFECTIVE TARIFF ON US IMPORTED GOODS 2026
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WHERE WE ARE USA · CHINA · VIETNAM · TURKEY · HAITI GLOBAL TRADE/ TARIFF UNCERTAINTY Strong U.S. Base and Global Footprint Gives Customers Valuable Optionality and CULP an Increasing Competitive Advantage
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• Knitted fabrics • Sewn mattress covers • Damask woven fabrics • Bedding accessories • Wide range of fashionable styles and price points INNOVATIVE PRODUCTS • One of the largest producers of mattress fabrics in North America • Global manufacturing and sourcing: • U.S., China, Vietnam, Turkey and Haiti, • Strong U.S. base and global footprint provide competitive advantage in current trade/tariff environment • Innovative designs capitalizing on sleep trends, cooling and sustainability COMPETITIVE STRENGTHS Large-Scale Leader in Consolidated Industry with Significant Barriers to Entry CULP BEDDING GROWING MARKET SHARE Culp Share 20-25%2 Market Size $500-600M 1 1 Management estimates for domestic mattress fabric and cover market 2 Culp top 2 player 13
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LEADING PRODUCTS FOR TOP BRANDS 14
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• 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 INNOVATIVE PRODUCTS • Outstanding design capabilities • 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 COMPETITIVE STRENGTHS Market Leader Known for Creative Designs and Innovative Products, with Asset-Light Operating Model CULP UPHOLSTERY GROWING MARKET SHARE Culp Share 8-10%2 Market Size $1.5 -$2.5 Billion1 1 Management estimates for domestic upholstery fabric market 2 Culp top 5 player 15
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INNOVATIVE PRODUCTS FOR TOP CUSTOMERS Focused on higher margin / growth segments • Targeting performance products ~40% of total • Targeting hospitality target at >30% of total 16
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UPHOLSTERY • FIRST to introduce suede upholstery fabrics and faux leather looks to commercial residential market • FIRST with stain-resistant performance fabrics at mid- market price points, including iClean® and LiveSmart® brands • FIRST to introduce performance + sustainability line of upholstery fabrics with LiveSmart Evolve® line • FIRST to introduce Nanobionic® wellness-focused fabric for residential home furnishings industry BEDDING • FIRST to adopt and combine on-shore, near- shore, and off-shore strategies to best support mattress cover customers and facilitate better tariff navigation • FIRST to introduce LiveFurnish 3-D visual rendering technology to showcase mattress fabric designs while also reducing sampling costs, enhancing customization, facilitating speed-to-market • FIRST with cooling + sustainability combined mattress fabrics CULP INNOVATION ENGINE 17
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CURRENT MARKET CONDITIONS 18
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PRE - COVID • Favorable long- term growth dynamics in both segments COVID IMPACT • Accelerated demand for home products • Slow demand – result of Covid accelerated “pull forward” + inflation + low housing activity + other macroeconomic factors • Timing unclear – Bedding industry consensus: product replacement cycle overdue CURRENT MACRO SITUATION 19 CURRENT POST - COVID SITUATION ANTICIPATED RETURN TO NORMALIZED MARKET CONDITIONS / GROWTH TREND v
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UNIT SHIPMENTS OF MATTRESSES Source: ISPA Annual Sales Survey & ITC Mattress Imports Data for 2019–2025, and ISPA Forecast for 2026– 2027 with permission * Includes U.S.-produced and import mattresses and stationary foundations BEDDING: CURRENT MARKET CYCLE DOLLAR VALUE OF MATTRESS SHIPMENTS -6.2% 5.2% -4.4% -14.7% -8.0% -5.7% -13.2% -5.0% -0.5% 30.000 35.000 40.000 45.000 50.000 55.000 60.000 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 2019 2020 2021 2022 2023 2024 2025 2026 2027 Units (Millions) Annual % Change Annual % Change Units (Total Mattress Market*) -7.4% 4.3% 18.0% -10.7% -6.8%-5.9%-6.5% -2.5% 2.0% $8.000 $9.000 $10.000 $11.000 $12.000 $13.000 $14.000 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 2019 2020 2021 2022 2023 2024 2025 2026 2027 Dollar Value ($ Billions) Annual % Change Annual % Change Dollar Value Source: ISPA Annual Sales Survey & ITC Mattress Imports Data for 2019–2025, and ISPA Forecast for 2026–2027 with permission * Includes U.S.-produced and import mattresses and stationary foundations (Total Mattress Market*) 20
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BEDDING: CURRENT MARKET CYCLE CY 2026 Second Quarter and YTD Continuing Challenged Market Conditions TOTAL US MARKET OF MATTRESSES AND STATIONARY FOUNDATIONS- Q2 2026 21 DOLLAR VALUE (MILLIONS) UNITS (THOUSANDS) TOTAL MARKET $2,335.4 $2,517.0 -7.2% $4531.7 $4,853.6 -6.6% 7,686.5 8,516.0 -9.7% 15,585.3 17,045.2 -8.6% 2026 2025 r % Change 2026 2025 r % Change 2026 2025 r % Change 2026 2025 r % Change 2nd Quarter Year-to-Date 2nd Quarter Year-to-Date Source: ISPA 2026 Bedding Market Quarterly, Second Quarter
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BEDDING: PRIOR INDUSTRY DOWNTURNS 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. 22
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HOUSING ACTIVITY - MULTI -YEAR TROUGH .5 3,792 4,125 4,475 4,333 4,623 4,822 4,907 4,736 4,746 5,057 5,425 4,532 3,676 3,673 3,700 3,828 4,026 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Forecast Sources: U.S. Census Bureau; U.S. Department of Housing and Urban Development via FRED® with permission 612 784 928 1,001 1,107 1,178 1,207 1,247 1,292 1,394 1,605 1,552 1,421 1,370 1,356 1,364 1,361 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Forecast Sources: U.S. Census Bureau; U.S. Department of Housing and Urban Development via FRED® with permission SALES OF EXISTING SINGLE - FAMILY HOMES (Units, thousands) TOTAL HOUSING STARTS (Units, thousands) 23
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HOUSING ACTIVITY – LOW INVENTORY 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, June 12, 2026. 24
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HOUSING ACTIVITY – 30 -YEAR MORTGAGE RATES 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, June 12, 2026. 25
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CONSUMER SENTIMENT Source: University of Michigan, University of Michigan: Consumer Sentiment [UMCSENT], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/USACSCICP02STSAM#, May 15, 2026 26
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CONSUMER SENTIMENT Source: University of Michigan, University of Michigan: Consumer Sentiment [UMCSENT], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/USACSCICP02STSAM#, May 15, 2026 27
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INVESTMENT HIGHLIGHTS 25
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• 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 year-over-year improvement in FY26, with further gains expected in FY27 in very difficult demand environment • Solid balance sheet with focus on returning to net cash position • Available liquidity to support growth and manage industry and global uncertainty INVESTMENT HIGHLIGHTS • 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 driving FY27 improvement • Global production and sourcing capabilities providing strategic options for customers to manage supply chain and navigate tariff and trade regulations NASDAQ: CULP 29
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NASDAQ: CULP 27
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RECONCILIATIONS OF NON- GAAP FINANCIAL MEASURES .5 31 This presentation contains adjusted income statement information for the three-month period ended August 2, 2026, which discloses adjusted gross profit and adjusted income (loss) from operations, both of which are non-U.S. GAAP performance measures that eliminate items which are not expected to occur on a recurring or regular basis. For the three-month period ended August 2, 2026, these items include certain tariff expense refunds received by the Company following the U.S. Supreme Court's decision in February 2026 to invalidate certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). The company has included this adjusted information in order to show operational performance excluding the effects of items not expected to occur on a recurring or regular basis. Details of these calculations and a reconciliation to information from our U.S. GAAP financial statements are set forth are set forth on the following pages. Management believes this presentation aids in the comparison of financial results among comparable financial periods. Management uses adjusted income statement information in evaluating the financial performance of our overall operations and business segments. Also, adjusted income statement information is used as a performance measure in our incentive-based executive compensation program. We note, however, that this adjusted income statement information should not be viewed in isolation or as a substitute for gross profit or income (loss) from operations calculated in accordance with U.S. GAAP. This presentation also contains disclosures about our adjusted EBITDA, which is a non-U.S. GAAP performance measure that reflects net (loss) income excluding income tax expense (benefit), net interest income, and restructuring expense or credit and restructuring related charges or credits, as well as depreciation and amortization expense, and stock-based compensation expense. Beginning in the quarter ended November 2, 2025, we modified our presentation of adjusted EBITDA to also exclude non-cash foreign exchange impacts. We believe this change enhances investor insight into our operational performance by removing the non-cash impact of changes in foreign currency exchange rates. In order to facilitate comparisons among periods, we have applied this modified definition of adjusted EBITDA to all periods presented in the presentation. This measure also excludes other non-recurring charges and credits associated with our business, if and to the extent any such amount is incurred during the period presented. Details of these calculations and a reconciliation to information from our U.S. GAAP financial statements are set forth on the following pages. We believe presentation of adjusted EBITDA is useful to investors because earnings before interest income and expense, income taxes, depreciation and amortization, and similar performance measures that exclude certain charges from earnings, are often used by investors and financial analysts in evaluating and comparing companies in our industry. Also, adjusted EBITDA is used as a performance measure in our incentive-based executive compensation program. We note, however, that such measures are not defined uniformly by various companies, with differing expenses being excluded from net income to calculate these performance measures. For this reason, adjusted EBITDA should not be viewed in isolation by investors and should not be used as a substitute for net income (loss) calculated in accordance with GAAP, nor should it be used for direct comparisons with similarly titled performance measures reported by other companies. Use of adjusted EBITDA as an analytical tool has limitations in that this measure does not reflect all expenses that are necessary to fund and operate our business, including funds required to pay taxes, service our debt, and fund capital expenditures, among others. Management uses adjusted EBITDA to help it analyze the company’s earnings and operating performance, by excluding the effects of expenses that depend upon capital structure and debt level, tax provisions, and non-cash items such as depreciation, amortization and stock-based compensation expense that do not require immediate uses of cash.
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RECONCILIATIONS OF NON- GAAP FINANCIAL MEASURES .5 32 Three months ended August 2, 2026 As Reported Adjusted Results August 2, August 2, 2026 Adjustments 2026 Net sales $ 53,973 — $ 53,973 Cost of sales (1) (38,595 ) (6,940 ) (45,535 ) Gross profit 15,378 (6,940 ) 8,438 Selling, general and administrative expenses (8,709 ) — (8,709 ) Income (loss) from operations $ 6,669 (6,940 ) $ (271 ) Notes (1) During the three-month period ended August 2, 2026, the $6.9 million represents cash proceeds regarding final approval from the U.S. Customs and Border Protection Agency regarding our tariff refund claims. The $6.9 million excludes interest and was recorded within cost of sales in the first quarter fiscal 2027 Consolidated Statement of Net Income. Three months ended August 3, 2025 As Reported Adjusted Results August 3, August 3, 2025 Adjustments 2025 Net sales $ 50,691 — $ 50,691 Cost of sales (43,463 ) — (43,463 ) Gross profit 7,228 — 7,228 Selling, general and administrative expenses (9,119 ) — (9,119 ) Restructuring credit (1) 3,508 (3,508 ) — Income (loss) from operations $ 1,617 (3,508 ) $ (1,891 ) Notes (1) During the three -month period ended August 3, 2025, restructuring credit mostly represented a gain from the sale of the manufacturing facility located in Quebec, Canada totaling $4.0 million, partially offset by charges related to our activities to transform our operating model and reduce fixed costs. Consolidated Gross Profit & Operating Income (Loss)
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RECONCILIATIONS OF NON- GAAP FINANCIAL MEASURES .5 33 Consolidated EBITDA Quarter Ended August 2, 2026 Net loss (income) $ 5,981 Income tax expense 868 Interest (income) expense, net 21 Depreciation expense 911 Amortization expense 29 EBITDA 7,810 Restructuring expense — Restructuring related charge — Resolution of legal matter (814 ) Tariff Refunds (6,940 ) Stock based compensation 150 Foreign currency exchange loss (1) 360 Adjusted EBITDA $ 566 % Net Sales 1.0 % Quarter Ended August 3, 2025 Net loss $ (231 ) Income tax (benefit) expense 1,369 Interest income, net (52 ) Depreciation expense 1,111 Amortization expense 95 EBITDA 2,292 Restructuring expense (credit) (3,508 ) Restructuring related charge — Stock based compensation 156 Foreign currency exchange loss (gain) 122 Adjusted EBITDA $ (938 ) % Net Sales (1.9 )% % Over (Under) (160.3 )%