content: ------------------------------------------------------------------
  
  
                        SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549
  
                                     ---------
  
                                     Form 8-K
  
                                  CURRENT REPORT
  
                 Pursuant to Section 13 or 15(d) of the Securities
                               Exchange Act of 1934
  
                                   -------------
  
         Date of Report (Date of earliest event reported) November 15, 2000
  
                                     CULP, INC.
  
              (Exact name of registrant as specified in its charter)
  
  
          North Carolina                  0-12781                56-1001967
  
   (State or other jurisdiction    (Commission File No.)       (IRS Employer
         of incorporation)                                  Identification No.)
  
  
  
                               101 South Main Street
                         High Point, North Carolina  27260
                     (Address of principal executive offices)
                                  (336) 889-5161
               (Registrant's telephone number, including area code)
  
  
  
  
  
           (Former name or former address, if changed since last report)
  
  
  
  
  
  -------------------------------------------------------------------
  
  
  
  <PAGE>
  
  
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages)  and  Financial  Information  Release (9
  pages),  both  dated  November  15,  2000,  related to the  fiscal  2001  second
  quarter ended October 29, 2000.
  
  Forward  Looking  Information.  This  Report  contains  statements  that  may be
  deemed   "forward-looking   statements"   within  the  meaning  of  the  federal
  securities  laws,  including  the Private  Securities  Litigation  Reform Act of
  1995.  Such  statements  are  inherently  subject  to risks  and  uncertainties.
  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  characterized  by
  qualifying words such as "expect,"  "believe,"  "estimate," "plan" and "project"
  and their  derivatives.  Factors that could  influence the matters  discussed in
  such  statements  include  the level of  housing  starts  and sales of  existing
  homes,  consumer  confidence,  trends in disposable income, and general economic
  conditions.  Decreases  in  these  economic  indicators  could  have a  negative
  effect  on  the  Company's  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 the  Company  adversely.
  Because of the  significant  percentage  of the  Company's  sales  derived  from
  international  shipments,  strengthening  of  the U.  S.  dollar  against  other
  currencies  could make the Company's  products less  competitive on the basis of
  price  in  markets  outside  the  United  States.  Additionally,   economic  and
  political  instability  in  international  areas could affect the demand for the
  Company's products.
  
  
  
                                     SIGNATURE
  
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
  
                                      CULP, INC.
                                      (Registrant)
  
  
                                By:    Phillip W. Wilson
                                       Vice President and
                                       Chief Financial Officer
  
  
  
  
  
  
  Dated:   November 15, 2000
  
  <PAGE>
  
  
  FOR IMMEDIATE RELEASE
  
                        CULP REPORTS SECOND QUARTER EARNINGS
  
  HIGH POINT,  N. C. (Nov.  15,  2000) - Culp,  Inc.  (NYSE:  CFI) today  reported
  results for the second quarter of its 2001 fiscal year.
  
        For the three months ended  October 29, 2000,  Culp  reported net sales of
  $111.0  million  compared with $129.5  million a year ago. The company  reported
  net income for the quarter of  $342,000,  or $0.03 per share  diluted,  compared
  with  net  income  of  $3.2  million,   or  $0.27  per  share  diluted,  in  the
  year-earlier period.
  
        The  results for the second  quarter  brought net sales for the first half
  of fiscal 2001 to  $212.9 million  compared with $245.5  million a year ago. The
  company  reported  a net loss for the first half of $1.4  million,  or $0.13 per
  share  diluted,  compared  with net income of $4.8  million,  or $0.39 per share
  diluted, in the year-earlier period.
  
        Robert  G.  Culp,  III,  chief  executive  officer,   commented,  "We  had
  expected  a profit  recovery  for the second  fiscal  quarter,  and our  results
  represent  a  definite   improvement  from  the  first  three  months.   We  are
  encouraged  by the overall  placements  that we had at the most recent  industry
  trade show,  but the benefit to Culp will depend  importantly on the strength of
  retail sales during the  important  holiday  marketing  period for the furniture
  and  bedding   offered  with   Culp-manufactured   fabrics  and   ticking.   The
  relatively  high  consumer   confidence  and  employment   levels  are  positive
  measures;  but retail demand  remains  sluggish,  especially in the  promotional
  categories  of the home  furnishings  market,  and the  strength  of the  dollar
  against  other  currencies  is having  an  adverse  impact on our  international
  sales.
  
       "Our sales of fabrics to  customers  outside the United  States  during the
  second quarter were down 26% from a year ago. The wide geographic breadth of our
  international  business  makes it  difficult  to  generalize  about any economic
  trends that may be affecting our business. Customer feedback endorses the appeal
  of our designs,  and we believe that the long-term  dynamics  driving  demand in
  these  markets  remain  favorable.  The  current  strength  in the U.S.  dollar,
  however,  is a significant  factor that is likely to cause a further drop in our
  international  sales in both the third and fourth quarters.  We have taken steps
  to reduce  expenses  related to this  portion  of our  business.  These  actions
  involved  severance costs in the second period,  but the resulting  savings will
  benefit subsequent periods."
  
        Culp  added,  "The  current  weakness  in  international  sales  makes  us
  especially  cautious  about the outlook for our results  over the  remainder  of
  this fiscal year.  The  combination  of that trend and the  seasonal  decline in
  net sales  normally  experienced  in the third  fiscal  quarter  may cause us to
  report a modest  net loss for the third  period.  We expect to close the year on
  a profitable  note in the final quarter,  but are uncertain at this time whether
  the  expected  improvement  in the fourth  period will leave us in the black for
  the year as a whole.  Through  the first half,  we  generated  $21.2  million in
  cash  from  operations  and used  $16.8  million  to  reduce  debt and  payables
  related to capital  expenditures.  Although a strategic  objective  is to reduce
  our debt further,  we are  committing  the funds  necessary to maintain  modern,
  efficient  manufacturing  capacity and effective  information systems. We remain
  confident  about Culp's  fundamental  competitive  position and believe that our
  capacity  and breadth of lines are  especially  important  attributes  within an
  industry that is continuing to consolidate at all levels."
  
  
  <PAGE>
  
  
        Culp, Inc. is one of the world's largest  marketers of upholstery  fabrics
  for furniture  and is a leading  marketer of mattress  ticking for bedding.  The
  Company's  fabrics are used  principally in the  production of  residential  and
  commercial furniture and bedding products.
  
        This  release  contains  statements  that may be  deemed  "forward-looking
  statements"  within the meaning of the federal  securities  laws,  including the
  Private   Securities   Litigation  Reform  Act  of  1995.  Such  statements  are
  inherently  subject to risks and uncertainties.  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  characterized  by  qualifying  words  such as  "expect,"
  "believe,"  "estimate,"  "plan" and  "project"  and their  derivatives.  Factors
  that could  influence  the  matters  discussed  in such  statements  include the
  level of  housing  starts  and sales of  existing  homes,  consumer  confidence,
  trends in  disposable  income and  general  economic  conditions.  Decreases  in
  these  economic  indicators  could  have a  negative  effect  on  the  company's
  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 the  company  adversely.  Because  of the  significant
  percentage  of  the  company's  sales  derived  from  international   shipments,
  strengthening  of the  U.S.  dollar  against  other  currencies  could  make the
  company's  products less  competitive  on the basis of price in markets  outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the company's products.
  
  
  
  
  
                                     CULP, INC.
                           Condensed Financial Highlights
                                    (Unaudited)
  
                                                     Three Months Ended
                                               -------------------------------
                                                 October 29,       October 31,
                                                    2000              1999
                                               --------------    -------------
  Net sales                                    $  110,981,000    $ 129,542,000
  Net income                                   $      342,000    $   3,160,000
  Net income per share:
    Basic                                      $         0.03    $        0.27
    Diluted                                    $         0.03    $        0.27
  Average shares outstanding:
    Basic                                          11,209,000       11,749,000
    Diluted                                        11,270,000       11,868,000
  
  
                                                      Six Months Ended
                                               -------------------------------
                                                 October 29,       October 31,
                                                    2000              1999
                                               --------------    -------------
  Net sales                                    $  212,859,000    $ 245,479,000
  Net income (loss)                            $  (1,414,000)    $   4,757,000
  Net income (loss) per share:
    Basic                                      $       (0.13)    $        0.40
    Diluted                                    $       (0.13)    $        0.39
  Average shares outstanding:
    Basic                                          11,209,000       11,906,000
    Diluted                                        11,282,000       12,044,000
  
                                        - END -
  
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 29, 2000 AND OCTOBER 31, 1999
  
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
  
                                                                 THREE MONTHS ENDED (UNAUDITED)
                                            --------------------------------------------------------------------------
                                                      Amounts                                     Percent of Sales
                                            ----------------------------                     ---------------------------
                                            October 29,    October 31,      % Over
                                                2000           1999         (Under)             2001          2000
                                            -------------  -------------  ------------       -------------  ------------
  <S>                                    <C>                   <C>           <C>                  <C>           <C>
  Net sales                              $       110,981        129,542       (14.3) %             100.0 %       100.0 %
  Cost of sales                                   94,094        105,835       (11.1) %              84.8 %        81.7 %
                                            -------------  -------------  ------------       -------------  ------------
          Gross profit                            16,887         23,707       (28.8) %              15.2 %        18.3 %
  
  Selling, general and
    administrative expenses                       13,491         16,035       (15.9) %              12.2 %        12.4 %
                                            -------------  -------------  ------------       -------------  ------------
          Income from operations                   3,396          7,672       (55.7) %               3.1 %         5.9 %
  
  Interest expense                                 2,285          2,484        (8.0) %               2.1 %         1.9 %
  Interest income                                    (15)           (16)       (6.3) %              (0.0)%        (0.0)%
  Other expense (income), net                        575            416        38.2  %               0.5 %         0.3 %
                                            -------------  -------------  ------------       -------------  ------------
          Income before income taxes                 551          4,788       (88.5) %               0.5 %         3.7 %
  
  Income taxes  *                                    209          1,628       (87.2) %              37.9 %        34.0 %
                                            -------------  -------------  ------------       -------------  ------------
          Net income                     $           342          3,160       (89.2) %               0.3 %         2.4 %
                                            =============  =============  ============       =============  ============
  
  Net income per share                             $0.03          $0.27       (88.9) %
  Net income per share, assuming dilution          $0.03          $0.27       (88.9) %
  Dividends per share                             $0.035         $0.035         0.0  %
  Average shares outstanding                      11,209         11,749        (4.6) %
  Average shares outstanding, assuming dilution   11,270         11,868        (5.0) %
  
  
  
                                                                  SIX MONTHS ENDED (UNAUDITED)
                                            --------------------------------------------------------------------------
                                                      Amounts                                     Percent of Sales
                                            ----------------------------                     ---------------------------
                                            October 29,    October 31,      % Over
                                                2000           1999         (Under)             2001          2000
                                            -------------  -------------  ------------       -------------  ------------
  Net sales                              $       212,859        245,479       (13.3) %             100.0 %       100.0 %
  Cost of sales                                  181,798        201,360        (9.7) %              85.4 %        82.0 %
                                            -------------  -------------  ------------       -------------  ------------
          Gross profit                            31,061         44,119       (29.6) %              14.6 %        18.0 %
  
  Selling, general and
    administrative expenses                       27,269         31,073       (12.2) %              12.8 %        12.7 %
                                            -------------  -------------  ------------       -------------  ------------
          Income from operations                   3,792         13,046       (70.9) %               1.8 %         5.3 %
  
  Interest expense                                 4,608          4,900        (6.0) %               2.2 %         2.0 %
  Interest income                                    (22)           (33)      (33.3) %              (0.0)%        (0.0)%
  Other expense (income), net                      1,316            971        35.5  %               0.6 %         0.4 %
                                            -------------  -------------  ------------       -------------  ------------
          Income (loss) before income taxes       (2,110)         7,208      (129.3) %              (1.0)%         2.9 %
  
  Income taxes  *                                   (696)         2,451      (128.4) %              33.0 %        34.0 %
                                            -------------  -------------  ------------       -------------  ------------
          Net income (loss)              $        (1,414)         4,757      (129.7) %              (0.7)%         1.9 %
                                            =============  =============  ============       =============  ============
  
  Net income (loss) per share                     ($0.13)         $0.40      (132.5) %
  Net income (loss) per share, assuming dilution  ($0.13)         $0.39      (133.3) %
  Dividends per share                              $0.07          $0.07         0.0  %
  Average shares outstanding                      11,209         11,906        (5.9) %
  Average shares outstanding, assuming dilution   11,282         12,044        (6.3) %
  </TABLE>
  
  
   * Percent of sales column is calculated as a % of income (loss)
  before income taxes.
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                OCTOBER 29, 2000, OCTOBER 31, 1999 AND APRIL 30, 2000
                                      Unaudited
  
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
                                                                Amounts                         Increase
                                              -------------------------------------            (Decrease)
                                                   October 29,        October 31,   -----------------------------  * April 30,
                                                      2000              1999           Dollars        Percent         2000
                                              -------------------  --------------  --------------    -----------   ----------
  <S>                                         <C>                       <C>            <C>           <C>             <C>
  Current assets
         Cash and cash investments            $               744             790            (46)       (5.8)%          1,007
         Accounts receivable                               63,991          69,749         (5,758)       (8.3)%         75,223
         Inventories                                       72,967          78,234         (5,267)       (6.7)%         74,471
         Other current assets                              11,003           8,865          2,138        24.1 %         10,349
                                               -------------------  --------------  --------------    -----------   ----------
                   Total current assets                   148,705         157,638         (8,933)       (5.7)%        161,050
  
  Restricted investments                                        0           1,085         (1,085)     (100.0)%              0
  Property, plant & equipment, net                        120,023         124,318         (4,295)       (3.5)%        126,407
  Goodwill                                                 49,176          50,571         (1,395)       (2.8)%         49,873
  Other assets                                              5,406           5,064            342         6.8 %          5,548
                                               -------------------  --------------  --------------    -----------   ----------
  
                   Total assets               $           323,310         338,676        (15,366)       (4.5)%        342,878
                                               ===================  ==============  ==============    ===========   ==========
  
  
  
  Current liabilities
         Current maturities of long-term debt $             1,678           1,678              0         0.0 %          1,678
         Accounts payable                                  30,351          38,427         (8,076)      (21.0)%         37,287
         Accrued expenses                                  22,404          22,947           (543)       (2.4)%         22,108
         Income taxes payable                                   0           1,786         (1,786)     (100.0)%              0
                                               -------------------  --------------  --------------    -----------   ----------
                   Total current liabilities               54,433          64,838        (10,405)      (16.0)%         61,073
  
  
  Long-term debt                                          125,079         133,875         (8,796)       (6.6)%        135,808
  
  Deferred income taxes                                    17,459          14,583          2,876        19.7 %         17,459
                                               -------------------  --------------  --------------    -----------   ----------
                   Total liabilities                      196,971         213,296        (16,325)       (7.7)%        214,340
  
  Shareholders' equity                                    126,339         125,380            959         0.8 %        128,538
                                               -------------------  --------------  --------------    -----------   ----------
                   Total liabilities and
                   shareholders' equity      $            323,310         338,676        (15,366)       (4.5)%        342,878
                                               ===================  ==============  ==============    ===========   ==========
  
  Shares outstanding                                       11,209          11,320           (111)       (1.0)%         11,209
                                               ===================  ==============  ==============    ===========   ==========
  </TABLE>
  
  
  *  Derived from audited financial statements.
  
  <PAGE>
                                     CULP, INC.
                           FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE SIX MONTHS ENDED OCTOBER 29, 2000 AND OCTOBER 31, 1999
                                      Unaudited
                               (Amounts in Thousands)
  
  <TABLE>
  <CAPTION>
                                                                                   SIX MONTHS ENDED
                                                                           --------------------------------
                                                                                      Amounts
                                                                            -----------------------------
                                                                             October 29,    October 31,
                                                                                2000            1999
                                                                            --------------  -------------
  <S>                                                                   <C>                 <C>
  Cash flows from operating activities:
       Net income (loss)                                                $         (1,414)         4,757
       Adjustments to reconcile net income (loss) to net
          cash provided by operating activities:
             Depreciation                                                         10,043          9,516
             Amortization of intangible assets                                       798            798
             Changes in assets and liabilities:
                 Accounts receivable                                              11,232            754
                 Inventories                                                       1,504        (11,164)
                 Other current assets                                               (654)           768
                 Other assets                                                        241           (186)
                 Accounts payable                                                   (859)         7,937
                 Accrued expenses                                                    296          1,921
                 Income taxes payable                                                  0          1,786
                                                                            --------------  -------------
                    Net cash provided by operating activities                     21,187         16,887
                                                                            --------------  -------------
  Cash flows from investing activities:
       Capital expenditures                                                       (3,659)       (10,524)
       Purchases of restricted investments                                             0            (27)
       Purchase of investments to fund deferred compensation liability              (200)             0
       Sale of restricted investments                                                  0          2,282
                                                                            --------------  -------------
                    Net cash used in investing activities                         (3,859)        (8,269)
                                                                            --------------  -------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                        0          5,333
       Principal payments on long-term debt                                      (10,729)       (11,770)
       Change in accounts payable-capital expenditures                            (6,077)         4,803
       Dividends paid                                                               (785)          (822)
       Payments to acquire common stock                                                0         (5,901)
       Proceeds from common stock issued                                               0             20
                                                                            --------------  -------------
                    Net cash used in financing activities                        (17,591)        (8,337)
                                                                            --------------  -------------
  
  Increase (decrease) in cash and cash investments                                  (263)           281
  
  Cash and cash investments at beginning of period                                 1,007            509
                                                                            --------------  -------------
  Cash and cash investments at end of period                           $             744            790
                                                                            ==============  =============
  
  </TABLE>
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  OCTOBER 29, 2000
  <TABLE>
  <CAPTION>
                                          FISCAL 00                         FISCAL 01
                                        ------------   ----------------------------------------------------   --------------
                                            Q2              Q1           Q2           Q3           Q4            LTM (5)
                                        ------------   ----------------------------------------------------   --------------
  <S>                                   <C>             <C>           <C>           <C>        <C>            <C>
  INVENTORIES
         Inventory turns                         5.5             4.7          5.1
  
  RECEIVABLES
         Days sales in receivables                49              49           52
         Percent current & less than 30
           days past due                        96.7%           91.5%       94.7%
  
  WORKING CAPITAL
         Current ratio                           2.4             3.2          2.7
         Working capital turnover (4)            4.4             4.3          4.2
         Operating working capital (4)      $109,556        $108,509     $106,607
  
  PROPERTY, PLANT & EQUIPMENT
         Depreciation rate                      7.8%            8.0%         7.9%
         Percent property, plant &
           equipment are depreciated           49.1%           51.1%        52.6%
         Capital expenditures                $22,559 (1)      $2,289       $1,370
  
  PROFITABILITY
         Return on average total capital        7.3%          (0.3%)         2.7%                                       3.6%
         Return on average equity              10.0%          (5.5%)         1.1%                                       2.5%
         Net income (loss) per share           $0.27         ($0.16)        $0.03                                      $0.28
         Net income (loss) per share (diluted) $0.27         ($0.16)        $0.03                                      $0.28
  
  LEVERAGE (3)
         Total liabilities/equity             170.1%          157.4%       155.9%
         Funded debt/equity                   107.2%          108.3%       100.3%
         Funded debt/capital employed          51.7%           52.0%        50.1%
         Funded debt                        $134,468        $136,828     $126,757
         Funded debt/EBITDA (LTM) (6)           3.08            3.46         3.59
         EBITDA/Interest expense, net (LTM)      4.6             4.2          3.8
  
  OTHER
         Book value per share                 $11.08          $11.28       $11.27
         Employees at quarter end              3,962           3,722        3,623
         Sales per employee (annualized)    $129,000        $108,000     $121,000
         Capital employed (3)               $259,848        $263,218     $253,096
         Effective income tax rate             34.0%           34.0%        37.9%
         EBITDA (2)                          $12,412          $5,114       $8,203                                    $35,150
         EBITDA/net sales                       9.6%            5.0%         7.4%                                       7.7%
  
    (1) Expenditures for entire year.
    (2) Earnings before interest, income taxes, and depreciation & amortization.
    (3) Long-term debt, funded debt and capital employed are all net of restricted investments.
    (4) Working capital for this calculation is accounts receivable, inventories and accounts payable.
    (5) LTM represents "Latest Twelve Months"
    (6) EBITDA includes capitalized interest and pro forma amounts for acquisitions.
  
  </TABLE>
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                              SALES BY SEGMENT/DIVISION
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 29, 2000 AND OCTOBER 31, 1999
  
                             (Amounts in thousands)
  <TABLE>
  <CAPTION>
                                                         THREE MONTHS ENDED (UNAUDITED)
                                      ---------------------------------------------------------------------
                                              Amounts
                                      ------------------------                    Percent of Total Sales
                                       October 29,  October 31,     % Over       --------------------------
  Segment/Division                       2000         1999          (Under)         2001          2000
  ---------------------------------   -----------  -----------   --------------  -----------   ------------
  <S>                              <C>                <C>         <C>             <C>           <C>
  Upholstery Fabrics
      Culp Decorative Fabrics      $      46,792       56,897      (17.8) %        42.2 %        43.9 %
      Culp Velvets/Prints                 32,073       41,783      (23.2) %        28.9 %        32.3 %
      Culp Yarn                            4,134        4,358       (5.1) %         3.7 %         3.4 %
                                      -----------  -----------   --------------  -----------   ------------
                                          82,999      103,038      (19.4) %        74.8 %        79.5 %
  
  Mattress Ticking
      Culp Home Fashions                  27,982       26,504        5.6  %        25.2 %        20.5 %
                                      -----------  -----------   --------------  -----------   ------------
                                 * $     110,981      129,542      (14.3) %       100.0 %       100.0 %
                                      ===========  ===========   ==============  ===========   ============
  
  
                                                          SIX MONTHS ENDED (UNAUDITED)
                                      ---------------------------------------------------------------------
                                              Amounts
                                      ------------------------                    Percent of Total Sales
                                       October 29,  October 31,      % Over      --------------------------
   Segment/Division                       2000         1999          (Under)        2001          2000
  ---------------------------------   -----------  -----------   --------------  -----------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics      $      88,325      107,413      (17.8) %        41.5 %        43.8 %
      Culp Velvets/Prints                 62,147       77,992      (20.3) %        29.2 %        31.8 %
      Culp Yarn                            7,453        8,487      (12.2) %         3.5 %         3.5 %
                                      -----------  -----------   --------------  -----------   ------------
                                         157,925      193,892      (18.6) %        74.2 %        79.0 %
  
  Mattress Ticking
      Culp Home Fashions                  54,934       51,587        6.5  %        25.8 %        21.0 %
                                      -----------  -----------   --------------  -----------   ------------
                                 * $     212,859      245,479      (13.3) %       100.0 %       100.0 %
                                      ===========  ===========   ==============  ===========   ============
  
  
  * U.S.  sales were $87,022 and $97,216 for the second quarter of fiscal 2001 and
  fiscal  2000,  respectively;  and  $169,312  and  $189,340 for the six months of
  fiscal 2001 and fiscal 2000, respectively. The percentage decrease in U.S. sales
  was 10.5% for the second quarter and a decrease of 10.6% for the six months.
  
  </TABLE>
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 29, 2000 AND OCTOBER 31, 1999
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                                           THREE MONTHS ENDED (UNAUDITED)
                                      --------------------------------------------------------------------------
                                                Amounts
                                      -----------------------------                   Percent of Total Sales
                                       October 29,    October 31,      % Over       ----------------------------
         Geographic Area                  2000            1999         (Under)          2001            2000
  -------------------------------     --------------  -------------  ------------   -------------    -----------
  <S>                            <C>                    <C>          <C>               <C>            <C>
  North America (Excluding USA)  $            9,556          9,912      (3.6) %           39.9 %         30.7 %
  Europe                                      1,807          6,069     (70.2) %            7.5 %         18.8 %
  Middle East                                 5,489          8,960     (38.7) %           22.9 %         27.7 %
  Far East & Asia                             5,590          5,357       4.3  %           23.3 %         16.6 %
  South America                                 279            630     (55.7) %            1.2 %          1.9 %
  All other areas                             1,238          1,398     (11.4) %            5.2 %          4.3 %
                                      --------------  -------------  ------------   -------------    -----------
                                 $           23,959         32,326     (25.9) %          100.0 %        100.0 %
                                      ==============  =============  ============   =============    ===========
  
  
                                                            SIX MONTHS ENDED (UNAUDITED)
                                      --------------------------------------------------------------------------
                                                Amounts
                                      -----------------------------                   Percent of Total Sales
                                       October 29,    October 31,      % Over       ----------------------------
         Geographic Area                  2000            1999         (Under)        2001            2000
  -------------------------------     --------------  -------------  ------------   -------------    -----------
  North America (Excluding USA)  $           17,951         17,588       2.1  %           41.2 %         31.3 %
  Europe                                      3,259          8,998     (63.8) %            7.5 %         16.0 %
  Middle East                                10,532         15,952     (34.0) %           24.2 %         28.4 %
  Far East & Asia                             8,826          9,666      (8.7) %           20.3 %         17.2 %
  South America                                 585          1,250     (53.2) %            1.3 %          2.2 %
  All other areas                             2,394          2,685     (10.8) %            5.5 %          4.8 %
                                      --------------  -------------  ------------   -------------    -----------
                                 $           43,547         56,139     (22.4) %          100.0 %        100.0 %
                                      ==============  =============  ============   =============    ===========
  
  
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years  follows:  fiscal  1996-$77,397  (22%);  fiscal  1997-$101,571
  (25%);  fiscal  1998-$137,223  (29%);  fiscal  1999-$113,354  (23%);  and fiscal
  2000-$111,104  (23%).  International  sales for the second  quarter  represented
  21.6%  and 25.0% for 2001 and  2000,  respectively.  Year-to-date  international
  sales   represented   20.5%  and  22.9%  of  total  sales  for  2001  and  2000,
  respectively.
  </TABLE>
  <PAGE>
  
  
                                     Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1999 vs 2000 vs 2001
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
                                                       Fiscal 1999                                       Fiscal 2000
                                     -------------------------------------------------     -------------------------------------------
         Segment/Division                Q1       Q2         Q3        Q4      TOTAL          Q1      Q2       Q3       Q4     TOTAL
  -------------------------------    --------  --------   --------   -------  -------      -------  -------  -------  -------  -------
  <S>                                 <C>       <C>        <C>       <C>      <C>          <C>      <C>      <C>      <C>      <C>
  Upholstery Fabrics
      Culp Decorative Fabrics          51,445    59,573     50,520    60,520  222,058       50,516   56,897   49,654   56,130  213,197
      Culp Velvets/Prints              29,994    38,728     34,949    40,402  144,073       36,209   41,783   34,050   39,501  151,543
      Culp Yarn                         6,596     6,367      4,088     4,462   21,513        4,129    4,358    4,274    4,809   17,570
                                     -------------------------------------------------     -------------------------------------------
                                       88,035   104,668     89,557   105,384  387,644       90,854  103,038   87,978  100,440  382,310
  
  Mattress Ticking
      Culp Home Fashions               22,632    23,491     22,536    26,781   95,440       25,083   26,504   25,203   28,979  105,769
                                     -------------------------------------------------     -------------------------------------------
                                      110,667   128,159    112,093   132,165  483,084      115,937  129,542  113,181  129,419  488,079
                                     =================================================     ===========================================
  
  
                     Percent increase(decrease) from prior year:
  
         Segment/Division
  -------------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics            29.2       4.9       (5.4)      0.6      5.7        (1.8)   (4.5)    (1.7)   (7.3)    (4.0)
      Culp Velvets/Prints               (21.9)    (11.8)     (20.6)    (10.3)   (15.9)       20.7     7.9     (2.6)   (2.2)     5.2
      Culp Yarn                         100.0     100.0      437.2     (37.3)   173.1       (37.4)  (31.6)     4.5     7.8    (18.3)
                                     -------------------------------------------------     -------------------------------------------
                                         12.6       3.9       (8.8)     (6.2)    (0.5)        3.2    (1.6)    (1.8)   (4.7)    (1.4)
  
  Mattress Ticking
      Culp Home Fashions                  6.3       5.7       11.2      13.9      9.3        10.8    12.8     11.8     8.2     10.8
                                     -------------------------------------------------    -------------------------------------------
                                         11.2       4.3       (5.4)     (2.7)     1.3         4.8     1.1      1.0    (2.1)     1.0
                                     =================================================     ===========================================
  
       Overall Growth Rate
  
  Internal (without acquisitions)        (4.6)     (0.9)      (8.5)     (2.7)    (4.1)        4.8     1.1      1.0    (2.1)     1.0
  External                               15.8       5.2        3.1         -      5.4           -       -        -       -        -
                                     -------------------------------------------------     -------------------------------------------
                                         11.2       4.3       (5.4)     (2.7)     1.3         4.8     1.1      1.0    (2.1)     1.0
                                     =================================================     ===========================================
  <PAGE>
  
                                     Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1999 vs 2000 vs 2001
  
                               (Amounts in thousands)
  
                                                     Fiscal 2001
                                      ----------------------------------------------
         Segment/Division                Q1          Q2          Q3      Q4    TOTAL
  -------------------------------     --------    -------   -------  ------- -------
  Upholstery Fabrics
      Culp Decorative Fabrics          41,533      46,792                     88,325
      Culp Velvets/Prints              30,074      32,073                     62,147
      Culp Yarn                         3,319       4,134                      7,453
                                      ----------------------------------------------
                                       74,926      82,999                    157,925
  
  Mattress Ticking
      Culp Home Fashions               26,952      27,982                     54,934
                                      ----------------------------------------------
                                      101,878     110,981                    212,859
                                      ==============================================
  
  
         Segment/Division
  -------------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics           (17.8)     (17.8)                     (17.8)
      Culp Velvets/Prints               (16.9)     (23.2)                     (20.3)
      Culp Yarn                         (19.6)      (5.1)                     (12.2)
                                      ----------------------------------------------
                                        (17.5)     (19.4)                     (18.6)
  
  Mattress Ticking
      Culp Home Fashions                  7.5        5.6                        6.5
                                     ----------------------------------------------
                                        (12.1)     (14.3)                     (13.3)
                                     ===============================================
  
       Overall Growth Rate
  
  Internal (without acquisitions)       (12.1)     (14.3)                     (13.3)
  External                                  -          -                          -
                                     ===============================================
                                        (12.1)     (14.3)                     (13.3)
                                     ===============================================
  </TABLE>
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and six month periods ended October 29, 2000 and October 31, 1999
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  second  quarter,  net sales  decreased  14.3% to $111.0
  million  compared to the same quarter of fiscal 2000;  and the company  reported
  net income of $342,000,  or $0.03 per share diluted (based on 11,270,000 average
  shares  outstanding) versus $0.27 per share diluted (based on 11,868,000 average
  shares  outstanding).  For the  first  six  months  of  fiscal  2001,  net sales
  decreased 13.3% to $212.9 million,  and the company  reported a net loss of $1.4
  million,  or $0.13  per  share  diluted  (based  on  11,282,000  average  shares
  outstanding),  versus net  income of $4.8  million,  or $0.39 per share  diluted
  (based on 12,044,000 average shares outstanding during the period), a year ago.
  
        The company's strategic plan encompasses several competitive initiatives:
  
       Broad Product  Offering - continuing to market one of the broadest  product
       lines in  upholstery  fabrics and mattress  ticking.  Through its extensive
       manufacturing  capabilities,  the company  competes in every major category
       except leather;
  
       Diverse Global Customer Base - maintaining a diverse, global customer base.
       The  company has  long-standing  relationships  with most major  upholstery
       furniture  manufacturers.  One customer  accounted for approximately 10% of
       net sales  during  the  second  quarter of fiscal  2001.  Ownership  of the
       resources  in  the  home  furnishings  industry  is  becoming  increasingly
       concentrated,  and the company is seeking to increase its business  further
       with  existing  customers.  Culp is also  pursuing  opportunities  in other
       end-use markets in addition to U.S. residential furniture, such as bedding,
       international, commercial furniture and juvenile furniture;
  
       Design  Innovation - continuing to invest in personnel and other  resources
       for the design of upholstery  fabrics and ticking with  appealing  patterns
       and textures. An integral component of the value Culp provides to customers
       is  supplying  fabrics  that are  fashionable  and match  current  consumer
       preferences. The company's principal design resources are consolidated in a
       single  facility  that has  advanced  CAD systems and promotes a sharing of
       innovative designs among the divisions;
  
       Vertical  Integration - operating as a vertically  integrated  manufacturer
       and taking  advantage of economies  that can be gained by producing the raw
       material components that are used in the manufacture of its products; and
  
       Additional Acquisitions - investing in selective acquisitions complementary
       to existing segments.
  
       NET SALES - Compared  with the second  quarter of fiscal  2000,  upholstery
  fabric  sales  decreased  19.4% to $83.0  million  and  mattress  ticking  sales
  increased 5.6% to $28.0 million (See Sales by Segment/Division  schedule on Page
  5 and Sales by Segment/Division - Trend Analysis on Page 7). International sales
  were down 25.9% for the quarter and 22.4% for the first six months.
  
       The company had expected that results for the second  quarter would be down
  from the  year-earlier  period but would represent an improvement  compared with
  the first quarter.  Key factors  influencing the  year-to-year  comparisons were
  further increases in the relative  strength of the dollar,  which affects Culp's
  sales to  customers  outside  the United  States,  and a  continued  weakness in
  consumer  spending on home  furnishings,  especially  in the  promotional  price
  category.  Also affecting the promotional price category was the bankruptcy of a
  major  furniture  retailer  which  impacted the domestic demand for  upholstered
  furniture.  The  decline in sales of  upholstery  fabrics  was offset in part by
  increased sales from Culp Home Fashions  (primarily  mattress  ticking).  Culp's
  growth in mattress  ticking  continues to be driven by the  introduction  of new
  designs and fabric  constructions  as well as the  advantages  of the  company's
  vertical integration.
  
       Sales in the company's third fiscal quarter are typically lower than in the
  second period due to holidays and scheduled,  seasonal plant shutdowns. Based on
  that  historical  pattern and current trends,  the company  believes that it may
  report a loss in the third  quarter.  The trend in results over the remainder of
  this fiscal year will be determined by a number of factors including the overall
  trend in consumer spending on home furnishings and the fluctuation of the dollar
  relative to other currencies.
  
       GROSS PROFIT - Gross profit  declined 28.8% for the second quarter versus a
  year ago and  decreased  as a percentage  of net sales from 18.3% to 15.2%.  The
  decline was due  principally  to lower sales  volume for the period which led to
  unfavorable cost variances in the company's  upholstery fabrics  operation.  The
  company has taken steps to lower expenses by  consolidating  certain  operations
  and reducing  personnel,  but these  actions were not  sufficient  to offset the
  impact of the significantly lower sales.
  
       SG&A  EXPENSES  - SG&A  expenses  for the  second  quarter  decreased  as a
  percentage  of sales from 12.4% to 12.2%.  The dollar  amount of these  expenses
  declined  15.9%  from a year ago,  reflecting  the  company's  actions to reduce
  expenses and the fact that a portion of these  expenses is variable based on the
  level of sales.  Partially  offsetting  these  reductions  are higher  severance
  costs.
  
       INTEREST  EXPENSE - Interest expense of $2.3 million for the second quarter
  was down  slightly  from $2.5  million in the prior year due to  slightly  lower
  average borrowings.
  
       OTHER EXPENSE (INCOME), NET - Other expense (income) for the second quarter
  totaled  $575,000  compared  with  $416,000 in the prior year.  The  increase is
  principally  due to lower  investment  income on assets related to the company's
  nonqualified deferred compensation plan.
  
       INCOME TAXES - The  effective  tax rate for the six months was 33.0% versus
  34.0% in the year-earlier period.
  
       EBITDA - Due  principally to the lower earnings for the period,  EBITDA for
  the second quarter decreased 34% to $8.2 million from $12.4 million in the prior
  year.
  
    BALANCE SHEET COMMENTS
  
       WORKING CAPITAL - Accounts receivable as of October 29, 2000 decreased 8.3%
  from the year-earlier  level, due principally to the lower sales for the period.
  Days sales outstanding increased to 52 days at October 29, 2000 compared with 49
  a year ago. The aging of accounts  receivable was 94.7% current and less than 30
  days past due versus  96.7% a year ago.  Inventories  at the close of the second
  quarter  decreased 6.7% from a year ago.  Inventory turns for the second quarter
  were 5.1 versus  5.5 for the  year-earlier  period.  Operating  working  capital
  (comprised of accounts  receivable,  inventory and accounts  payable) was $106.6
  million at October 29, 2000, down from $109.6 million a year ago.
  
       PROPERTY,  PLANT AND EQUIPMENT - During  fiscal 2000 the company's  capital
  spending  increased to $22.6  million  compared  with $10.7 million in the prior
  year.  The  level  of  capital  spending  in  fiscal  2001  is  budgeted  to  be
  approximately $16 million. Spending through the first half totaled $3.7 million.
  Depreciation for fiscal 2001 is estimated to be $20.5 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 50.1% at
  October 29, 2000 compared with 51.7% a year ago.  Funded debt was $126.8 million
  at October 29, 2000 compared with $134.5 million a year ago.  Funded debt equals
  long-term debt, including current maturities, less restricted investments, which
  represent unspent IRB funds.
  
  STOCK REPURCHASE
  
       In separate  authorizations  in June 1998,  March 1999,  September 1999 and
  December  1999,  the Board of Directors  authorized  the use of a total of $20.0
  million to  repurchase  the  company's  common  stock.  Over the past two fiscal
  years,  the company has  invested  $12.2  million to  repurchase  a total of 1.8
  million  shares.  No  purchases  were made during the first six months of fiscal
  2001.
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "0001.txt", "description": "CULP, INC. 8-K", "secsgml_size_bytes": 55007}]
metadata_filer: {"company-data": {"conformed-name": "CULP INC", "cik": "0000723603", "assigned-sic": "2211", "irs-number": "561001967", "state-of-incorporation": "NC", "fiscal-year-end": "0430"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-12597", "film-number": "770777"}, "business-address": {"street1": "101 S MAIN ST", "city": "HIGH POINT", "state": "NC", "zip": "27260", "phone": "3368895161"}, "mail-address": {"street1": "P O BOX 2686", "street2": "101 S MAIN ST", "city": "HIGH POINT", "state": "NC", "zip": "27261"}}
text: ------------------------------------------------------------------
  
                        SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549
  
                                     ---------
  
                                     Form 8-K
  
                                  CURRENT REPORT
  
                 Pursuant to Section 13 or 15(d) of the Securities
                               Exchange Act of 1934
  
                                   -------------
  
         Date of Report (Date of earliest event reported) November 15, 2000
  
                                     CULP, INC.
  
              (Exact name of registrant as specified in its charter)
  
          North Carolina                  0-12781                56-1001967
  
   (State or other jurisdiction    (Commission File No.)       (IRS Employer
         of incorporation)                                  Identification No.)
  
                               101 South Main Street
                         High Point, North Carolina  27260
                     (Address of principal executive offices)
                                  (336) 889-5161
               (Registrant's telephone number, including area code)
  
           (Former name or former address, if changed since last report)
  
  -------------------------------------------------------------------
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages)  and  Financial  Information  Release (9
  pages),  both  dated  November  15,  2000,  related to the  fiscal  2001  second
  quarter ended October 29, 2000.
  
  Forward  Looking  Information.  This  Report  contains  statements  that  may be
  deemed   "forward-looking   statements"   within  the  meaning  of  the  federal
  securities  laws,  including  the Private  Securities  Litigation  Reform Act of
  1995.  Such  statements  are  inherently  subject  to risks  and  uncertainties.
  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  characterized  by
  qualifying words such as "expect,"  "believe,"  "estimate," "plan" and "project"
  and their  derivatives.  Factors that could  influence the matters  discussed in
  such  statements  include  the level of  housing  starts  and sales of  existing
  homes,  consumer  confidence,  trends in disposable income, and general economic
  conditions.  Decreases  in  these  economic  indicators  could  have a  negative
  effect  on  the  Company's  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 the  Company  adversely.
  Because of the  significant  percentage  of the  Company's  sales  derived  from
  international  shipments,  strengthening  of  the U.  S.  dollar  against  other
  currencies  could make the Company's  products less  competitive on the basis of
  price  in  markets  outside  the  United  States.  Additionally,   economic  and
  political  instability  in  international  areas could affect the demand for the
  Company's products.
  
                                     SIGNATURE
  
  Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
  Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
  undersigned hereunto duly authorized.
  
                                      CULP, INC.
                                      (Registrant)
  
                                By:    Phillip W. Wilson
                                       Vice President and
                                       Chief Financial Officer
  
  Dated:   November 15, 2000
  FOR IMMEDIATE RELEASE
  
                        CULP REPORTS SECOND QUARTER EARNINGS
  
  HIGH POINT,  N. C. (Nov.  15,  2000) - Culp,  Inc.  (NYSE:  CFI) today  reported
  results for the second quarter of its 2001 fiscal year.
  
        For the three months ended  October 29, 2000,  Culp  reported net sales of
  $111.0  million  compared with $129.5  million a year ago. The company  reported
  net income for the quarter of  $342,000,  or $0.03 per share  diluted,  compared
  with  net  income  of  $3.2  million,   or  $0.27  per  share  diluted,  in  the
  year-earlier period.
  
        The  results for the second  quarter  brought net sales for the first half
  of fiscal 2001 to  $212.9 million  compared with $245.5  million a year ago. The
  company  reported  a net loss for the first half of $1.4  million,  or $0.13 per
  share  diluted,  compared  with net income of $4.8  million,  or $0.39 per share
  diluted, in the year-earlier period.
  
        Robert  G.  Culp,  III,  chief  executive  officer,   commented,  "We  had
  expected  a profit  recovery  for the second  fiscal  quarter,  and our  results
  represent  a  definite   improvement  from  the  first  three  months.   We  are
  encouraged  by the overall  placements  that we had at the most recent  industry
  trade show,  but the benefit to Culp will depend  importantly on the strength of
  retail sales during the  important  holiday  marketing  period for the furniture
  and  bedding   offered  with   Culp-manufactured   fabrics  and   ticking.   The
  relatively  high  consumer   confidence  and  employment   levels  are  positive
  measures;  but retail demand  remains  sluggish,  especially in the  promotional
  categories  of the home  furnishings  market,  and the  strength  of the  dollar
  against  other  currencies  is having  an  adverse  impact on our  international
  sales.
  
       "Our sales of fabrics to  customers  outside the United  States  during the
  second quarter were down 26% from a year ago. The wide geographic breadth of our
  international  business  makes it  difficult  to  generalize  about any economic
  trends that may be affecting our business. Customer feedback endorses the appeal
  of our designs,  and we believe that the long-term  dynamics  driving  demand in
  these  markets  remain  favorable.  The  current  strength  in the U.S.  dollar,
  however,  is a significant  factor that is likely to cause a further drop in our
  international  sales in both the third and fourth quarters.  We have taken steps
  to reduce  expenses  related to this  portion  of our  business.  These  actions
  involved  severance costs in the second period,  but the resulting  savings will
  benefit subsequent periods."
  
        Culp  added,  "The  current  weakness  in  international  sales  makes  us
  especially  cautious  about the outlook for our results  over the  remainder  of
  this fiscal year.  The  combination  of that trend and the  seasonal  decline in
  net sales  normally  experienced  in the third  fiscal  quarter  may cause us to
  report a modest  net loss for the third  period.  We expect to close the year on
  a profitable  note in the final quarter,  but are uncertain at this time whether
  the  expected  improvement  in the fourth  period will leave us in the black for
  the year as a whole.  Through  the first half,  we  generated  $21.2  million in
  cash  from  operations  and used  $16.8  million  to  reduce  debt and  payables
  related to capital  expenditures.  Although a strategic  objective  is to reduce
  our debt further,  we are  committing  the funds  necessary to maintain  modern,
  efficient  manufacturing  capacity and effective  information systems. We remain
  confident  about Culp's  fundamental  competitive  position and believe that our
  capacity  and breadth of lines are  especially  important  attributes  within an
  industry that is continuing to consolidate at all levels."
  Culp, Inc. is one of the world's largest  marketers of upholstery  fabrics
  for furniture  and is a leading  marketer of mattress  ticking for bedding.  The
  Company's  fabrics are used  principally in the  production of  residential  and
  commercial furniture and bedding products.
  
        This  release  contains  statements  that may be  deemed  "forward-looking
  statements"  within the meaning of the federal  securities  laws,  including the
  Private   Securities   Litigation  Reform  Act  of  1995.  Such  statements  are
  inherently  subject to risks and uncertainties.  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  characterized  by  qualifying  words  such as  "expect,"
  "believe,"  "estimate,"  "plan" and  "project"  and their  derivatives.  Factors
  that could  influence  the  matters  discussed  in such  statements  include the
  level of  housing  starts  and sales of  existing  homes,  consumer  confidence,
  trends in  disposable  income and  general  economic  conditions.  Decreases  in
  these  economic  indicators  could  have a  negative  effect  on  the  company's
  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 the  company  adversely.  Because  of the  significant
  percentage  of  the  company's  sales  derived  from  international   shipments,
  strengthening  of the  U.S.  dollar  against  other  currencies  could  make the
  company's  products less  competitive  on the basis of price in markets  outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the company's products.
  
                                     CULP, INC.
                           Condensed Financial Highlights
                                    (Unaudited)
  
                                                     Three Months Ended
                                               -------------------------------
                                                 October 29,       October 31,
                                                    2000              1999
                                               --------------    -------------
  Net sales                                    $  110,981,000    $ 129,542,000
  Net income                                   $      342,000    $   3,160,000
  Net income per share:
    Basic                                      $         0.03    $        0.27
    Diluted                                    $         0.03    $        0.27
  Average shares outstanding:
    Basic                                          11,209,000       11,749,000
    Diluted                                        11,270,000       11,868,000
  
                                                      Six Months Ended
                                               -------------------------------
                                                 October 29,       October 31,
                                                    2000              1999
                                               --------------    -------------
  Net sales                                    $  212,859,000    $ 245,479,000
  Net income (loss)                            $  (1,414,000)    $   4,757,000
  Net income (loss) per share:
    Basic                                      $       (0.13)    $        0.40
    Diluted                                    $       (0.13)    $        0.39
  Average shares outstanding:
    Basic                                          11,209,000       11,906,000
    Diluted                                        11,282,000       12,044,000
  
                                        - END -
  CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 29, 2000 AND OCTOBER 31, 1999
  
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED (UNAUDITED)
                                            --------------------------------------------------------------------------
                                                      Amounts                                     Percent of Sales
                                            ----------------------------                     ---------------------------
                                            October 29,    October 31,      % Over
                                                2000           1999         (Under)             2001          2000
                                            -------------  -------------  ------------       -------------  ------------
  Net sales                              $       110,981        129,542       (14.3) %             100.0 %       100.0 %
  Cost of sales                                   94,094        105,835       (11.1) %              84.8 %        81.7 %
                                            -------------  -------------  ------------       -------------  ------------
          Gross profit                            16,887         23,707       (28.8) %              15.2 %        18.3 %
  
  Selling, general and
    administrative expenses                       13,491         16,035       (15.9) %              12.2 %        12.4 %
                                            -------------  -------------  ------------       -------------  ------------
          Income from operations                   3,396          7,672       (55.7) %               3.1 %         5.9 %
  
  Interest expense                                 2,285          2,484        (8.0) %               2.1 %         1.9 %
  Interest income                                    (15)           (16)       (6.3) %              (0.0)%        (0.0)%
  Other expense (income), net                        575            416        38.2  %               0.5 %         0.3 %
                                            -------------  -------------  ------------       -------------  ------------
          Income before income taxes                 551          4,788       (88.5) %               0.5 %         3.7 %
  
  Income taxes  *                                    209          1,628       (87.2) %              37.9 %        34.0 %
                                            -------------  -------------  ------------       -------------  ------------
          Net income                     $           342          3,160       (89.2) %               0.3 %         2.4 %
                                            =============  =============  ============       =============  ============
  
  Net income per share                             $0.03          $0.27       (88.9) %
  Net income per share, assuming dilution          $0.03          $0.27       (88.9) %
  Dividends per share                             $0.035         $0.035         0.0  %
  Average shares outstanding                      11,209         11,749        (4.6) %
  Average shares outstanding, assuming dilution   11,270         11,868        (5.0) %
  
                                                                  SIX MONTHS ENDED (UNAUDITED)
                                            --------------------------------------------------------------------------
                                                      Amounts                                     Percent of Sales
                                            ----------------------------                     ---------------------------
                                            October 29,    October 31,      % Over
                                                2000           1999         (Under)             2001          2000
                                            -------------  -------------  ------------       -------------  ------------
  Net sales                              $       212,859        245,479       (13.3) %             100.0 %       100.0 %
  Cost of sales                                  181,798        201,360        (9.7) %              85.4 %        82.0 %
                                            -------------  -------------  ------------       -------------  ------------
          Gross profit                            31,061         44,119       (29.6) %              14.6 %        18.0 %
  
  Selling, general and
    administrative expenses                       27,269         31,073       (12.2) %              12.8 %        12.7 %
                                            -------------  -------------  ------------       -------------  ------------
          Income from operations                   3,792         13,046       (70.9) %               1.8 %         5.3 %
  
  Interest expense                                 4,608          4,900        (6.0) %               2.2 %         2.0 %
  Interest income                                    (22)           (33)      (33.3) %              (0.0)%        (0.0)%
  Other expense (income), net                      1,316            971        35.5  %               0.6 %         0.4 %
                                            -------------  -------------  ------------       -------------  ------------
          Income (loss) before income taxes       (2,110)         7,208      (129.3) %              (1.0)%         2.9 %
  
  Income taxes  *                                   (696)         2,451      (128.4) %              33.0 %        34.0 %
                                            -------------  -------------  ------------       -------------  ------------
          Net income (loss)              $        (1,414)         4,757      (129.7) %              (0.7)%         1.9 %
                                            =============  =============  ============       =============  ============
  
  Net income (loss) per share                     ($0.13)         $0.40      (132.5) %
  Net income (loss) per share, assuming dilution  ($0.13)         $0.39      (133.3) %
  Dividends per share                              $0.07          $0.07         0.0  %
  Average shares outstanding                      11,209         11,906        (5.9) %
  Average shares outstanding, assuming dilution   11,282         12,044        (6.3) %
  * Percent of sales column is calculated as a % of income (loss)
  before income taxes.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                OCTOBER 29, 2000, OCTOBER 31, 1999 AND APRIL 30, 2000
                                      Unaudited
  
                               (Amounts in Thousands)
  Amounts                         Increase
                                              -------------------------------------            (Decrease)
                                                   October 29,        October 31,   -----------------------------  * April 30,
                                                      2000              1999           Dollars        Percent         2000
                                              -------------------  --------------  --------------    -----------   ----------
  Current assets
         Cash and cash investments            $               744             790            (46)       (5.8)%          1,007
         Accounts receivable                               63,991          69,749         (5,758)       (8.3)%         75,223
         Inventories                                       72,967          78,234         (5,267)       (6.7)%         74,471
         Other current assets                              11,003           8,865          2,138        24.1 %         10,349
                                               -------------------  --------------  --------------    -----------   ----------
                   Total current assets                   148,705         157,638         (8,933)       (5.7)%        161,050
  
  Restricted investments                                        0           1,085         (1,085)     (100.0)%              0
  Property, plant & equipment, net                        120,023         124,318         (4,295)       (3.5)%        126,407
  Goodwill                                                 49,176          50,571         (1,395)       (2.8)%         49,873
  Other assets                                              5,406           5,064            342         6.8 %          5,548
                                               -------------------  --------------  --------------    -----------   ----------
  
                   Total assets               $           323,310         338,676        (15,366)       (4.5)%        342,878
                                               ===================  ==============  ==============    ===========   ==========
  
  Current liabilities
         Current maturities of long-term debt $             1,678           1,678              0         0.0 %          1,678
         Accounts payable                                  30,351          38,427         (8,076)      (21.0)%         37,287
         Accrued expenses                                  22,404          22,947           (543)       (2.4)%         22,108
         Income taxes payable                                   0           1,786         (1,786)     (100.0)%              0
                                               -------------------  --------------  --------------    -----------   ----------
                   Total current liabilities               54,433          64,838        (10,405)      (16.0)%         61,073
  
  Long-term debt                                          125,079         133,875         (8,796)       (6.6)%        135,808
  
  Deferred income taxes                                    17,459          14,583          2,876        19.7 %         17,459
                                               -------------------  --------------  --------------    -----------   ----------
                   Total liabilities                      196,971         213,296        (16,325)       (7.7)%        214,340
  
  Shareholders' equity                                    126,339         125,380            959         0.8 %        128,538
                                               -------------------  --------------  --------------    -----------   ----------
                   Total liabilities and
                   shareholders' equity      $            323,310         338,676        (15,366)       (4.5)%        342,878
                                               ===================  ==============  ==============    ===========   ==========
  
  Shares outstanding                                       11,209          11,320           (111)       (1.0)%         11,209
                                               ===================  ==============  ==============    ===========   ==========
  *  Derived from audited financial statements.
  CULP, INC.
                           FINANCIAL INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
           FOR THE SIX MONTHS ENDED OCTOBER 29, 2000 AND OCTOBER 31, 1999
                                      Unaudited
                               (Amounts in Thousands)
  SIX MONTHS ENDED
                                                                           --------------------------------
                                                                                      Amounts
                                                                            -----------------------------
                                                                             October 29,    October 31,
                                                                                2000            1999
                                                                            --------------  -------------
  Cash flows from operating activities:
       Net income (loss)                                                $         (1,414)         4,757
       Adjustments to reconcile net income (loss) to net
          cash provided by operating activities:
             Depreciation                                                         10,043          9,516
             Amortization of intangible assets                                       798            798
             Changes in assets and liabilities:
                 Accounts receivable                                              11,232            754
                 Inventories                                                       1,504        (11,164)
                 Other current assets                                               (654)           768
                 Other assets                                                        241           (186)
                 Accounts payable                                                   (859)         7,937
                 Accrued expenses                                                    296          1,921
                 Income taxes payable                                                  0          1,786
                                                                            --------------  -------------
                    Net cash provided by operating activities                     21,187         16,887
                                                                            --------------  -------------
  Cash flows from investing activities:
       Capital expenditures                                                       (3,659)       (10,524)
       Purchases of restricted investments                                             0            (27)
       Purchase of investments to fund deferred compensation liability              (200)             0
       Sale of restricted investments                                                  0          2,282
                                                                            --------------  -------------
                    Net cash used in investing activities                         (3,859)        (8,269)
                                                                            --------------  -------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                        0          5,333
       Principal payments on long-term debt                                      (10,729)       (11,770)
       Change in accounts payable-capital expenditures                            (6,077)         4,803
       Dividends paid                                                               (785)          (822)
       Payments to acquire common stock                                                0         (5,901)
       Proceeds from common stock issued                                               0             20
                                                                            --------------  -------------
                    Net cash used in financing activities                        (17,591)        (8,337)
                                                                            --------------  -------------
  
  Increase (decrease) in cash and cash investments                                  (263)           281
  
  Cash and cash investments at beginning of period                                 1,007            509
                                                                            --------------  -------------
  Cash and cash investments at end of period                           $             744            790
                                                                            ==============  =============
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                  OCTOBER 29, 2000
  FISCAL 00                         FISCAL 01
                                        ------------   ----------------------------------------------------   --------------
                                            Q2              Q1           Q2           Q3           Q4            LTM (5)
                                        ------------   ----------------------------------------------------   --------------
  INVENTORIES
         Inventory turns                         5.5             4.7          5.1
  
  RECEIVABLES
         Days sales in receivables                49              49           52
         Percent current & less than 30
           days past due                        96.7%           91.5%       94.7%
  
  WORKING CAPITAL
         Current ratio                           2.4             3.2          2.7
         Working capital turnover (4)            4.4             4.3          4.2
         Operating working capital (4)      $109,556        $108,509     $106,607
  
  PROPERTY, PLANT & EQUIPMENT
         Depreciation rate                      7.8%            8.0%         7.9%
         Percent property, plant &
           equipment are depreciated           49.1%           51.1%        52.6%
         Capital expenditures                $22,559 (1)      $2,289       $1,370
  
  PROFITABILITY
         Return on average total capital        7.3%          (0.3%)         2.7%                                       3.6%
         Return on average equity              10.0%          (5.5%)         1.1%                                       2.5%
         Net income (loss) per share           $0.27         ($0.16)        $0.03                                      $0.28
         Net income (loss) per share (diluted) $0.27         ($0.16)        $0.03                                      $0.28
  
  LEVERAGE (3)
         Total liabilities/equity             170.1%          157.4%       155.9%
         Funded debt/equity                   107.2%          108.3%       100.3%
         Funded debt/capital employed          51.7%           52.0%        50.1%
         Funded debt                        $134,468        $136,828     $126,757
         Funded debt/EBITDA (LTM) (6)           3.08            3.46         3.59
         EBITDA/Interest expense, net (LTM)      4.6             4.2          3.8
  
  OTHER
         Book value per share                 $11.08          $11.28       $11.27
         Employees at quarter end              3,962           3,722        3,623
         Sales per employee (annualized)    $129,000        $108,000     $121,000
         Capital employed (3)               $259,848        $263,218     $253,096
         Effective income tax rate             34.0%           34.0%        37.9%
         EBITDA (2)                          $12,412          $5,114       $8,203                                    $35,150
         EBITDA/net sales                       9.6%            5.0%         7.4%                                       7.7%
  
    (1) Expenditures for entire year.
    (2) Earnings before interest, income taxes, and depreciation & amortization.
    (3) Long-term debt, funded debt and capital employed are all net of restricted investments.
    (4) Working capital for this calculation is accounts receivable, inventories and accounts payable.
    (5) LTM represents "Latest Twelve Months"
    (6) EBITDA includes capitalized interest and pro forma amounts for acquisitions.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                              SALES BY SEGMENT/DIVISION
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 29, 2000 AND OCTOBER 31, 1999
  
                             (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                      ---------------------------------------------------------------------
                                              Amounts
                                      ------------------------                    Percent of Total Sales
                                       October 29,  October 31,     % Over       --------------------------
  Segment/Division                       2000         1999          (Under)         2001          2000
  ---------------------------------   -----------  -----------   --------------  -----------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics      $      46,792       56,897      (17.8) %        42.2 %        43.9 %
      Culp Velvets/Prints                 32,073       41,783      (23.2) %        28.9 %        32.3 %
      Culp Yarn                            4,134        4,358       (5.1) %         3.7 %         3.4 %
                                      -----------  -----------   --------------  -----------   ------------
                                          82,999      103,038      (19.4) %        74.8 %        79.5 %
  
  Mattress Ticking
      Culp Home Fashions                  27,982       26,504        5.6  %        25.2 %        20.5 %
                                      -----------  -----------   --------------  -----------   ------------
                                 * $     110,981      129,542      (14.3) %       100.0 %       100.0 %
                                      ===========  ===========   ==============  ===========   ============
  
                                                          SIX MONTHS ENDED (UNAUDITED)
                                      ---------------------------------------------------------------------
                                              Amounts
                                      ------------------------                    Percent of Total Sales
                                       October 29,  October 31,      % Over      --------------------------
   Segment/Division                       2000         1999          (Under)        2001          2000
  ---------------------------------   -----------  -----------   --------------  -----------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics      $      88,325      107,413      (17.8) %        41.5 %        43.8 %
      Culp Velvets/Prints                 62,147       77,992      (20.3) %        29.2 %        31.8 %
      Culp Yarn                            7,453        8,487      (12.2) %         3.5 %         3.5 %
                                      -----------  -----------   --------------  -----------   ------------
                                         157,925      193,892      (18.6) %        74.2 %        79.0 %
  
  Mattress Ticking
      Culp Home Fashions                  54,934       51,587        6.5  %        25.8 %        21.0 %
                                      -----------  -----------   --------------  -----------   ------------
                                 * $     212,859      245,479      (13.3) %       100.0 %       100.0 %
                                      ===========  ===========   ==============  ===========   ============
  
  * U.S.  sales were $87,022 and $97,216 for the second quarter of fiscal 2001 and
  fiscal  2000,  respectively;  and  $169,312  and  $189,340 for the six months of
  fiscal 2001 and fiscal 2000, respectively. The percentage decrease in U.S. sales
  was 10.5% for the second quarter and a decrease of 10.6% for the six months.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
   FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 29, 2000 AND OCTOBER 31, 1999
  
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                      --------------------------------------------------------------------------
                                                Amounts
                                      -----------------------------                   Percent of Total Sales
                                       October 29,    October 31,      % Over       ----------------------------
         Geographic Area                  2000            1999         (Under)          2001            2000
  -------------------------------     --------------  -------------  ------------   -------------    -----------
  North America (Excluding USA)  $            9,556          9,912      (3.6) %           39.9 %         30.7 %
  Europe                                      1,807          6,069     (70.2) %            7.5 %         18.8 %
  Middle East                                 5,489          8,960     (38.7) %           22.9 %         27.7 %
  Far East & Asia                             5,590          5,357       4.3  %           23.3 %         16.6 %
  South America                                 279            630     (55.7) %            1.2 %          1.9 %
  All other areas                             1,238          1,398     (11.4) %            5.2 %          4.3 %
                                      --------------  -------------  ------------   -------------    -----------
                                 $           23,959         32,326     (25.9) %          100.0 %        100.0 %
                                      ==============  =============  ============   =============    ===========
  
                                                            SIX MONTHS ENDED (UNAUDITED)
                                      --------------------------------------------------------------------------
                                                Amounts
                                      -----------------------------                   Percent of Total Sales
                                       October 29,    October 31,      % Over       ----------------------------
         Geographic Area                  2000            1999         (Under)        2001            2000
  -------------------------------     --------------  -------------  ------------   -------------    -----------
  North America (Excluding USA)  $           17,951         17,588       2.1  %           41.2 %         31.3 %
  Europe                                      3,259          8,998     (63.8) %            7.5 %         16.0 %
  Middle East                                10,532         15,952     (34.0) %           24.2 %         28.4 %
  Far East & Asia                             8,826          9,666      (8.7) %           20.3 %         17.2 %
  South America                                 585          1,250     (53.2) %            1.3 %          2.2 %
  All other areas                             2,394          2,685     (10.8) %            5.5 %          4.8 %
                                      --------------  -------------  ------------   -------------    -----------
                                 $           43,547         56,139     (22.4) %          100.0 %        100.0 %
                                      ==============  =============  ============   =============    ===========
  
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years  follows:  fiscal  1996-$77,397  (22%);  fiscal  1997-$101,571
  (25%);  fiscal  1998-$137,223  (29%);  fiscal  1999-$113,354  (23%);  and fiscal
  2000-$111,104  (23%).  International  sales for the second  quarter  represented
  21.6%  and 25.0% for 2001 and  2000,  respectively.  Year-to-date  international
  sales   represented   20.5%  and  22.9%  of  total  sales  for  2001  and  2000,
  respectively.
  Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1999 vs 2000 vs 2001
  
                               (Amounts in thousands)
  Fiscal 1999                                       Fiscal 2000
                                     -------------------------------------------------     -------------------------------------------
         Segment/Division                Q1       Q2         Q3        Q4      TOTAL          Q1      Q2       Q3       Q4     TOTAL
  -------------------------------    --------  --------   --------   -------  -------      -------  -------  -------  -------  -------
  Upholstery Fabrics
      Culp Decorative Fabrics          51,445    59,573     50,520    60,520  222,058       50,516   56,897   49,654   56,130  213,197
      Culp Velvets/Prints              29,994    38,728     34,949    40,402  144,073       36,209   41,783   34,050   39,501  151,543
      Culp Yarn                         6,596     6,367      4,088     4,462   21,513        4,129    4,358    4,274    4,809   17,570
                                     -------------------------------------------------     -------------------------------------------
                                       88,035   104,668     89,557   105,384  387,644       90,854  103,038   87,978  100,440  382,310
  
  Mattress Ticking
      Culp Home Fashions               22,632    23,491     22,536    26,781   95,440       25,083   26,504   25,203   28,979  105,769
                                     -------------------------------------------------     -------------------------------------------
                                      110,667   128,159    112,093   132,165  483,084      115,937  129,542  113,181  129,419  488,079
                                     =================================================     ===========================================
  
                     Percent increase(decrease) from prior year:
  
         Segment/Division
  -------------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics            29.2       4.9       (5.4)      0.6      5.7        (1.8)   (4.5)    (1.7)   (7.3)    (4.0)
      Culp Velvets/Prints               (21.9)    (11.8)     (20.6)    (10.3)   (15.9)       20.7     7.9     (2.6)   (2.2)     5.2
      Culp Yarn                         100.0     100.0      437.2     (37.3)   173.1       (37.4)  (31.6)     4.5     7.8    (18.3)
                                     -------------------------------------------------     -------------------------------------------
                                         12.6       3.9       (8.8)     (6.2)    (0.5)        3.2    (1.6)    (1.8)   (4.7)    (1.4)
  
  Mattress Ticking
      Culp Home Fashions                  6.3       5.7       11.2      13.9      9.3        10.8    12.8     11.8     8.2     10.8
                                     -------------------------------------------------    -------------------------------------------
                                         11.2       4.3       (5.4)     (2.7)     1.3         4.8     1.1      1.0    (2.1)     1.0
                                     =================================================     ===========================================
  
       Overall Growth Rate
  
  Internal (without acquisitions)        (4.6)     (0.9)      (8.5)     (2.7)    (4.1)        4.8     1.1      1.0    (2.1)     1.0
  External                               15.8       5.2        3.1         -      5.4           -       -        -       -        -
                                     -------------------------------------------------     -------------------------------------------
                                         11.2       4.3       (5.4)     (2.7)     1.3         4.8     1.1      1.0    (2.1)     1.0
                                     =================================================     ===========================================
  Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1999 vs 2000 vs 2001
  
                               (Amounts in thousands)
  
                                                     Fiscal 2001
                                      ----------------------------------------------
         Segment/Division                Q1          Q2          Q3      Q4    TOTAL
  -------------------------------     --------    -------   -------  ------- -------
  Upholstery Fabrics
      Culp Decorative Fabrics          41,533      46,792                     88,325
      Culp Velvets/Prints              30,074      32,073                     62,147
      Culp Yarn                         3,319       4,134                      7,453
                                      ----------------------------------------------
                                       74,926      82,999                    157,925
  
  Mattress Ticking
      Culp Home Fashions               26,952      27,982                     54,934
                                      ----------------------------------------------
                                      101,878     110,981                    212,859
                                      ==============================================
  
         Segment/Division
  -------------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics           (17.8)     (17.8)                     (17.8)
      Culp Velvets/Prints               (16.9)     (23.2)                     (20.3)
      Culp Yarn                         (19.6)      (5.1)                     (12.2)
                                      ----------------------------------------------
                                        (17.5)     (19.4)                     (18.6)
  
  Mattress Ticking
      Culp Home Fashions                  7.5        5.6                        6.5
                                     ----------------------------------------------
                                        (12.1)     (14.3)                     (13.3)
                                     ===============================================
  
       Overall Growth Rate
  
  Internal (without acquisitions)       (12.1)     (14.3)                     (13.3)
  External                                  -          -                          -
                                     ===============================================
                                        (12.1)     (14.3)                     (13.3)
                                     ===============================================
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and six month periods ended October 29, 2000 and October 31, 1999
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  second  quarter,  net sales  decreased  14.3% to $111.0
  million  compared to the same quarter of fiscal 2000;  and the company  reported
  net income of $342,000,  or $0.03 per share diluted (based on 11,270,000 average
  shares  outstanding) versus $0.27 per share diluted (based on 11,868,000 average
  shares  outstanding).  For the  first  six  months  of  fiscal  2001,  net sales
  decreased 13.3% to $212.9 million,  and the company  reported a net loss of $1.4
  million,  or $0.13  per  share  diluted  (based  on  11,282,000  average  shares
  outstanding),  versus net  income of $4.8  million,  or $0.39 per share  diluted
  (based on 12,044,000 average shares outstanding during the period), a year ago.
  
        The company's strategic plan encompasses several competitive initiatives:
  
       Broad Product  Offering - continuing to market one of the broadest  product
       lines in  upholstery  fabrics and mattress  ticking.  Through its extensive
       manufacturing  capabilities,  the company  competes in every major category
       except leather;
  
       Diverse Global Customer Base - maintaining a diverse, global customer base.
       The  company has  long-standing  relationships  with most major  upholstery
       furniture  manufacturers.  One customer  accounted for approximately 10% of
       net sales  during  the  second  quarter of fiscal  2001.  Ownership  of the
       resources  in  the  home  furnishings  industry  is  becoming  increasingly
       concentrated,  and the company is seeking to increase its business  further
       with  existing  customers.  Culp is also  pursuing  opportunities  in other
       end-use markets in addition to U.S. residential furniture, such as bedding,
       international, commercial furniture and juvenile furniture;
  
       Design  Innovation - continuing to invest in personnel and other  resources
       for the design of upholstery  fabrics and ticking with  appealing  patterns
       and textures. An integral component of the value Culp provides to customers
       is  supplying  fabrics  that are  fashionable  and match  current  consumer
       preferences. The company's principal design resources are consolidated in a
       single  facility  that has  advanced  CAD systems and promotes a sharing of
       innovative designs among the divisions;
  
       Vertical  Integration - operating as a vertically  integrated  manufacturer
       and taking  advantage of economies  that can be gained by producing the raw
       material components that are used in the manufacture of its products; and
  
       Additional Acquisitions - investing in selective acquisitions complementary
       to existing segments.
  
       NET SALES - Compared  with the second  quarter of fiscal  2000,  upholstery
  fabric  sales  decreased  19.4% to $83.0  million  and  mattress  ticking  sales
  increased 5.6% to $28.0 million (See Sales by Segment/Division  schedule on Page
  5 and Sales by Segment/Division - Trend Analysis on Page 7). International sales
  were down 25.9% for the quarter and 22.4% for the first six months.
  
       The company had expected that results for the second  quarter would be down
  from the  year-earlier  period but would represent an improvement  compared with
  the first quarter.  Key factors  influencing the  year-to-year  comparisons were
  further increases in the relative  strength of the dollar,  which affects Culp's
  sales to  customers  outside  the United  States,  and a  continued  weakness in
  consumer  spending on home  furnishings,  especially  in the  promotional  price
  category.  Also affecting the promotional price category was the bankruptcy of a
  major  furniture  retailer  which  impacted the domestic demand for  upholstered
  furniture.  The  decline in sales of  upholstery  fabrics  was offset in part by
  increased sales from Culp Home Fashions  (primarily  mattress  ticking).  Culp's
  growth in mattress  ticking  continues to be driven by the  introduction  of new
  designs and fabric  constructions  as well as the  advantages  of the  company's
  vertical integration.
  
       Sales in the company's third fiscal quarter are typically lower than in the
  second period due to holidays and scheduled,  seasonal plant shutdowns. Based on
  that  historical  pattern and current trends,  the company  believes that it may
  report a loss in the third  quarter.  The trend in results over the remainder of
  this fiscal year will be determined by a number of factors including the overall
  trend in consumer spending on home furnishings and the fluctuation of the dollar
  relative to other currencies.
  
       GROSS PROFIT - Gross profit  declined 28.8% for the second quarter versus a
  year ago and  decreased  as a percentage  of net sales from 18.3% to 15.2%.  The
  decline was due  principally  to lower sales  volume for the period which led to
  unfavorable cost variances in the company's  upholstery fabrics  operation.  The
  company has taken steps to lower expenses by  consolidating  certain  operations
  and reducing  personnel,  but these  actions were not  sufficient  to offset the
  impact of the significantly lower sales.
  
       SG&A  EXPENSES  - SG&A  expenses  for the  second  quarter  decreased  as a
  percentage  of sales from 12.4% to 12.2%.  The dollar  amount of these  expenses
  declined  15.9%  from a year ago,  reflecting  the  company's  actions to reduce
  expenses and the fact that a portion of these  expenses is variable based on the
  level of sales.  Partially  offsetting  these  reductions  are higher  severance
  costs.
  
       INTEREST  EXPENSE - Interest expense of $2.3 million for the second quarter
  was down  slightly  from $2.5  million in the prior year due to  slightly  lower
  average borrowings.
  
       OTHER EXPENSE (INCOME), NET - Other expense (income) for the second quarter
  totaled  $575,000  compared  with  $416,000 in the prior year.  The  increase is
  principally  due to lower  investment  income on assets related to the company's
  nonqualified deferred compensation plan.
  
       INCOME TAXES - The  effective  tax rate for the six months was 33.0% versus
  34.0% in the year-earlier period.
  
       EBITDA - Due  principally to the lower earnings for the period,  EBITDA for
  the second quarter decreased 34% to $8.2 million from $12.4 million in the prior
  year.
  
    BALANCE SHEET COMMENTS
  
       WORKING CAPITAL - Accounts receivable as of October 29, 2000 decreased 8.3%
  from the year-earlier  level, due principally to the lower sales for the period.
  Days sales outstanding increased to 52 days at October 29, 2000 compared with 49
  a year ago. The aging of accounts  receivable was 94.7% current and less than 30
  days past due versus  96.7% a year ago.  Inventories  at the close of the second
  quarter  decreased 6.7% from a year ago.  Inventory turns for the second quarter
  were 5.1 versus  5.5 for the  year-earlier  period.  Operating  working  capital
  (comprised of accounts  receivable,  inventory and accounts  payable) was $106.6
  million at October 29, 2000, down from $109.6 million a year ago.
  
       PROPERTY,  PLANT AND EQUIPMENT - During  fiscal 2000 the company's  capital
  spending  increased to $22.6  million  compared  with $10.7 million in the prior
  year.  The  level  of  capital  spending  in  fiscal  2001  is  budgeted  to  be
  approximately $16 million. Spending through the first half totaled $3.7 million.
  Depreciation for fiscal 2001 is estimated to be $20.5 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 50.1% at
  October 29, 2000 compared with 51.7% a year ago.  Funded debt was $126.8 million
  at October 29, 2000 compared with $134.5 million a year ago.  Funded debt equals
  long-term debt, including current maturities, less restricted investments, which
  represent unspent IRB funds.
  
  STOCK REPURCHASE
  
       In separate  authorizations  in June 1998,  March 1999,  September 1999 and
  December  1999,  the Board of Directors  authorized  the use of a total of $20.0
  million to  repurchase  the  company's  common  stock.  Over the past two fiscal
  years,  the company has  invested  $12.2  million to  repurchase  a total of 1.8
  million  shares.  No  purchases  were made during the first six months of fiscal
  2001.