CULP Culp Dashboard

Risks

• The ongoing global COVID-19 pandemic has significantly and adversely affected, and may continue to adversely affect, our business, financial position, results of operations, and cash flows.
• Loss of market share due to competition would result in declines in sales and could result in losses or decreases in earnings.
• Our operations are subject to risks of unsettled political conditions, civil unrest or instability, public health concerns or pandemics, natural or man-made disasters, acts of war, and terrorism, any one of which could adversely affect our business and results of operations.
• Our business may be adversely affected by increased tariffs or other changes in U.S. policy related to imported products, as well as violations of existing trade policies.
• Greater reliance on offshore operations and foreign sources of products or raw materials increases the likelihood of disruptions to our supply chain or our ability to deliver products to our customers on a timely basis.
• Our business faces several risks associated with doing business in China
• We may have difficulty managing the outsourcing arrangements being used for products and services.
• Changes in the price, availability, and quality of raw materials could increase our costs or cause production delays and sales interruptions, which would result in decreased earnings.
• Increases in energy costs would increase our operating costs and could adversely affect earnings.
• Business difficulties or failures of large customers could result in a decrease in our sales and earnings.
• If we fail to anticipate and respond to changes in consumer tastes and fashion trends, our sales and earnings may decline.
• Increasing dependence on information technology systems comes with specific risks, including cybersecurity breaches and data leaks, which could have an adverse effect on our business.
• We may not be able to recruit and retain key employees and skilled workers in a competitive labor market.
• We have made and expect to continue to make acquisitions, which could involve certain risks and uncertainties.
• We may require funding from external sources, which may not be available at the levels we require or may cost more than we expect. As a result, our expenses and operating results could be negatively affected.
• We are subject to litigation and environmental regulations that could adversely affect our sales and earnings.
• We must comply with many governmental regulations applicable to our business, and changes in those regulations could adversely affect our business.