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) August 22, 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 (2 pages)  and  Financial  Information  Release (9
  pages),  both dated  August 22, 2000,  related to the fiscal 2001 first  quarter
  ended July 30, 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:   August 22, 2000
  
  
  <PAGE>
  
  
  FOR IMMEDIATE RELEASE
  
  
                         CULP REPORTS FIRST QUARTER RESULTS
  
  HIGH POINT,  N. C. (Aug.  22,  2000) - Culp,  Inc.  (NYSE:  CFI) today  reported
  results  for the first  quarter of its 2001  fiscal  year that were in line with
  the preliminary  outlook for the quarter that the Company had publicly  released
  last month.
  
        For the three  months  ended July 30,  2000,  Culp  reported  net sales of
  $101.9  million  compared with $115.9  million a year ago. The company  reported
  a net  loss  for the  quarter  of $1.8  million,  or $0.16  per  share  diluted,
  compared with net income of $1.6  million,  or $0.13 per share  diluted,  in the
  year-earlier period.
  
        Robert  G.  Culp,  III,  chief  executive  officer,   commented,   "As  we
  indicated  last month,  we  encountered  a definite  slowing in incoming  orders
  during  the  quarter.  Our  first  fiscal  quarter  is not a  seasonally  strong
  period for our business;  and as a result of the  lower-than-expected  sales and
  some  plant  consolidation  expenses,  we did  not  operate  profitably  for the
  period.  Based on  current  trends  in our  business,  we  believe  that we will
  achieve  a profit  recovery  in the  second  fiscal  quarter  but  still  expect
  earnings  to be down from a year ago.  Our  results  for fiscal  2001 as a whole
  will  depend  importantly  on the  overall  trend in  consumer  spending on home
  furnishings.  We are  encouraged  that the  traditional  measures that influence
  demand such as consumer  confidence  and employment  levels remain  strong,  but
  the rise in interest  rates since the start of calendar  2000 clearly poses some
  concern.  The  relative  strength  of the  dollar is  another  factor  that will
  influence  our  progress  because  of the impact  this has on our  international
  sales."
  
        Culp added, "A vital strategic focus remains  capitalizing  further on the
  consolidation  within  the  home  furnishings   industry.   Having  one  of  the
  broadest  arrays of  fabrics,  together  with modern  manufacturing  facilities,
  positions  Culp  well to work with the major  furniture  manufacturers  who have
  been  steadily  gaining  market share in recent years.  It is essential  that we
  combine the  consistent  development  of appealing  designs  with our  extensive
  manufacturing  resources.  We are  pleased  with  the  momentum  that  Culp  has
  achieved in the trade  acceptance  of our latest  patterns  and  finishes.  Over
  the balance of the current  fiscal year, we expect that these  placements on our
  customers' furniture lines will translate into an increasing trend in orders."
  
  
  <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.
  
                                     CULP, INC.
                           Condensed Financial Highlights
                                    (Unaudited)
  
                                                      Three Months Ended
                                               -------------------------------
                                                July 30, 2000     Aug. 1, 1999
                                               --------------    -------------
  Net sales                                    $  101,878,000    $ 115,937,000
  Net income (loss)                            $   (1,756,000)   $   1,597,000
  Net income (loss) per share:
    Basic                                      $        (0.16)   $        0.13
    Diluted                                    $        (0.16)   $        0.13
  Average shares outstanding:
    Basic                                          11,209,000       12,063,000
    Diluted                                        11,292,000       12,219,000
  
        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.
  
                                      - END -
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
             FOR THE THREE MONTHS ENDED JULY 30, 2000 AND AUGUST 1, 1999
  
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
                                                                         THREE MONTHS ENDED (UNAUDITED)
                                                ----------------------------------------------------------------------------------
                                                           Amounts                                          Percent of Sales
                                                ------------------------------                        ------------------------------
                                                  July 30,        August 1,         % Over
                                                    2000            1999           (Under)               2001            2000
                                                --------------  --------------   -------------        --------------  --------------
  <S>                                       <C>                      <C>            <C>                    <C>              <C>
  Net sales                                 $         101,878         115,937        (12.1) %               100.0  %         100.0 %
  Cost of sales                                        87,704          95,525         (8.2) %                86.1  %          82.4 %
                                                --------------  --------------   -------------        --------------  --------------
           Gross profit                                14,174          20,412        (30.6) %                13.9  %          17.6 %
  
  Selling, general and
    administrative expenses                            13,778          15,038         (8.4) %                13.5  %          13.0 %
                                                --------------  --------------   -------------        --------------  --------------
           Income from operations                         396           5,374        (92.6) %                 0.4  %           4.6 %
  
  Interest expense                                      2,323           2,416         (3.8) %                 2.3  %           2.1 %
  Interest income                                          (7)            (17)       (58.8) %                (0.0) %          (0.0)%
  Other expense (income), net                             741             555         33.5  %                 0.7  %           0.5 %
                                                --------------  --------------   -------------        --------------  --------------
           Income (loss) before income taxes           (2,661)          2,420       (210.0) %                (2.6) %           2.1 %
  
  Income taxes  *                                        (905)            823       (210.0) %                34.0  %          34.0 %
                                                --------------  --------------   -------------        --------------  --------------
  
           Net income (loss)                $          (1,756)          1,597       (210.0) %                (1.7) %           1.4 %
                                                ==============  ==============   =============        ==============  ==============
  
  Net income (loss) per share                          ($0.16)          $0.13       (223.1) %
  Net income (loss) per share, assuming dilution       ($0.16)          $0.13       (223.1) %
  Dividends per share                                  $0.035          $0.035          0.0  %
  Average shares outstanding                           11,209          12,063         (7.1) %
  Average shares outstanding, assuming dilution        11,292          12,219         (7.6) %
  </TABLE>
  
   * Percent of sales column is calculated as a % of income (loss) before
  income taxes.
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                  JULY 30, 2000, AUGUST 1, 1999 AND APRIL 30, 2000
                                      Unaudited
                               (Amounts in Thousands)
   <TABLE>
  <CAPTION>
                                                              Amounts                  Increase
                                               ------------------------------         (Decrease)
                                                 July 30,        August 1,   --------------------------     * April 30,
                                                   2000            1999        Dollars         Percent         2000
                                                ------------  ------------  ------------    -----------     ------------
  <S>                                         <C>                <C>           <C>           <C>              <C>
  Current assets
         Cash and cash investments            $       1,654         1,097          557         50.8  %            1,007
         Accounts receivable                         58,851        61,984       (3,133)        (5.1) %           75,223
         Inventories                                 74,600        75,337         (737)        (1.0) %           74,471
         Other current assets                        11,565        10,860          705          6.5  %           10,349
                                                ------------  ------------  ------------    -----------     ------------
                    Total current assets            146,670       149,278       (2,608)        (1.7) %          161,050
  
  Restricted investments                                  0         1,684       (1,684)      (100.0) %                0
  Property, plant & equipment, net                  123,636       120,971        2,665          2.2  %          126,407
  Goodwill                                           49,525        50,920       (1,395)        (2.7) %           49,873
  Other assets                                        5,550         4,969          581         11.7  %            5,548
                                                ------------  ------------  ------------    -----------     ------------
  
                    Total assets              $     325,381       327,822       (2,441)        (0.7) %          342,878
                                                ============  ============  ============    ===========     ============
  
  
  Current liabilities
         Current maturities of long-term debt $       1,678         1,678            0          0.0  %            1,678
         Accounts payable                            24,942        26,099       (1,157)        (4.4) %           37,287
         Accrued expenses                            19,762        20,309         (547)        (2.7) %           22,108
         Income taxes payable                             0           798         (798)      (100.0) %                0
                                                ------------  ------------  ------------    -----------     ------------
                    Total current liabilities        46,382        48,884       (2,502)        (5.1) %           61,073
  
  
  Long-term debt                                    135,150       136,228       (1,078)        (0.8) %          135,808
  Deferred income taxes                              17,459        14,583        2,876         19.7  %           17,459
                                                ------------  ------------  ------------    -----------     ------------
                    Total liabilities               198,991       199,695         (704)        (0.4) %          214,340
  
  Shareholders' equity                              126,390       128,127       (1,737)        (1.4) %          128,538
                                                ------------  ------------  ------------    -----------     ------------
  
                    Total liabilities and
                    shareholders' equity      $     325,381       327,822       (2,441)        (0.7) %          342,878
                                                ============  ============  ============    ===========     ============
  
  Shares outstanding                                 11,209        12,040         (831)        (6.9) %           11,209
                                                ============  ============  ============    ===========     ============
  
  </TABLE>
  
  *  Derived from audited financial
  statements.
  
  <PAGE>
                                CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
             FOR THE THREE MONTHS ENDED JULY 30, 2000 AND AUGUST 1, 1999
                                      Unaudited
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
                                                                                  THREE MONTHS ENDED
                                                                           ----------------------------------
                                                                                       Amounts
                                                                           --------------------------------
                                                                              July 30,        August 1,
                                                                                2000             1999
                                                                           ---------------  ---------------
  <S>                                                                    <C>                     <C>
  Cash flows from operating activities:
       Net income (loss)                                                 $         (1,756)           1,597
       Adjustments to reconcile net income (loss) to net
          cash provided by operating activities:
              Depreciation                                                          5,060            4,759
              Amortization of intangible assets                                       399              399
              Changes in assets and liabilities:
                  Accounts receivable                                              16,372            8,519
                  Inventories                                                        (129)          (8,267)
                  Other current assets                                             (1,216)          (1,227)
                  Other assets                                                        147              (41)
                  Accounts payable                                                 (6,886)             270
                  Accrued expenses                                                 (2,346)            (717)
                  Income taxes payable                                                  0              798
                                                                           ---------------  ---------------
                      Net cash provided by operating activities                     9,645            6,090
                                                                           ---------------  ---------------
  Cash flows from investing activities:
       Capital expenditures                                                        (2,289)          (2,420)
       Purchases of restricted investments                                              0              (15)
       Purchase of investments to fund deferred compensation liability               (200)               0
       Sale of restricted investments                                                   0            1,671
                                                                           ---------------  ---------------
                      Net cash used in investing activities                        (2,489)            (764)
                                                                           ---------------  ---------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                         0            3,333
       Principal payments on long-term debt                                          (658)          (7,417)
       Change in accounts payable-capital expenditures                             (5,459)             142
       Dividends paid                                                                (392)            (423)
       Payments to acquire common stock                                                 0             (393)
       Proceeds from common stock issued                                                0               20
                                                                           ---------------  ---------------
                      Net cash used in financing activities                        (6,509)          (4,738)
                                                                           ---------------  ---------------
  
  Increase in cash and cash investments                                               647              588
  
  Cash and cash investments at beginning of period                                  1,007              509
                                                                           ---------------  ---------------
  
  Cash and cash investments at end of period                             $          1,654            1,097
                                                                           ===============  ===============
  
  </TABLE>
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                    JULY 30, 2000
  <TABLE>
  <CAPTION>
                                             FISCAL 00                            FISCAL 01
                                           -------------   ------------------------------------------------   ---------------
                                                Q1              Q1             Q2         Q3         Q4          LTM (5)
                                           -------------   ------------------------------------------------   ---------------
  <S>                                         <C>          <C>             <C>        <C>          <C>          <C>
  INVENTORIES
          Inventory turns                           5.4              4.7
  
  RECEIVABLES
          Days sales in receivables                  45               49
          Percent current & less than 30
            days past due                         93.2%            91.5%
  
  WORKING CAPITAL
          Current ratio                            3.1              3.2
          Working capital turnover (4)             4.4              4.3
          Operating working capital (4)        $111,222         $108,509
  
  PROPERTY, PLANT & EQUIPMENT
          Depreciation rate                        8.0%             8.0%
          Percent property, plant &
            equipment are depreciated             49.0%            51.1%
          Capital expenditures                  $22,559 (1)       $2,289
  
  PROFITABILITY
          Return on average total capital          4.8%           (0.3%)                                                4.7%
          Return on average equity                 5.0%           (5.5%)                                                4.8%
          Net income (loss) per share             $0.13          ($0.16)                                               $0.52
          Net income (loss) per share(diluted)    $0.13          ($0.16)                                               $0.52
  
  LEVERAGE (3)
          Total liabilities/equity               155.9%           157.4%
          Funded debt/equity                     106.3%           108.3%
          Funded debt/capital employed            51.5%            52.0%
          Funded debt                          $136,222         $136,828
          Funded debt/EBITDA (LTM) (6)            3.33             3.46
          EBITDA/Interest expense, net (LTM)       4.3              4.2
  
  OTHER
          Book value per share                   $10.64           $11.28
          Employees at quarter end                4,050            3,722
          Sales per employee (annualized)      $116,000         $108,000
          Capital employed (3)                 $264,349         $263,218
          Effective income tax rate               34.0%            34.0%
          EBITDA (2)                             $9,977           $5,114                                             $39,359
          EBITDA/net sales                         8.6%             5.0%                                                8.3%
  </TABLE>
  
    (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.
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                              SALES BY SEGMENT/DIVISION
             FOR THE THREE MONTHS ENDED JULY 30, 2000 AND AUGUST 1, 1999
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                                              THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                          July 30,      August 1,         % Over
  Segment/Division                          2000          1999           (Under)           2001            2000
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  <S>                                 <C>                  <C>         <C>               <C>             <C>
  Upholstery Fabrics
      Culp Decorative Fabrics         $       41,533        50,516       (17.8) %          40.8 %          43.6 %
      Culp Velvets/Prints                     30,074        36,209       (16.9) %          29.5 %          31.2 %
      Culp Yarn                                3,319         4,129       (19.6) %           3.3 %           3.6 %
                                         ------------  ------------   ---------------  -------------   ------------
                                              74,926        90,854       (17.5) %          73.5 %          78.4 %
  
  Mattress Ticking
      Culp Home Fashions                      26,952        25,083         7.5  %          26.5 %          21.6 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      101,878       115,937       (12.1) %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  </TABLE>
  
  * U.S.  sales were $82,290 and $92,124 for the first  quarter of fiscal 2001 and
  fiscal 2000,  respectively.  The percentage decrease in U.S. sales was 10.7% for
  the first quarter.
  
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
             FOR THE THREE MONTHS ENDED JULY 30, 2000 AND AUGUST 1, 1999
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
                                                                 THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                            July 30,        August 1,        % Over
           Geographic Area                    2000            1999           (Under)           2001             2000
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  <S>                               <C>                           <C>        <C>             <C>              <C>
  North America (Excluding USA)     $             8,395           7,676        9.4  %          42.9 %           32.2 %
  Europe                                          1,452           2,929      (50.4) %           7.4 %           12.3 %
  Middle East                                     5,043           6,992      (27.9) %          25.7 %           29.4 %
  Far East & Asia                                 3,236           4,309      (24.9) %          16.5 %           18.1 %
  South America                                     306             620      (50.6) %           1.6 %            2.6 %
  All other areas                                 1,156           1,287      (10.2) %           5.9 %            5.4 %
                                         ---------------  --------------  --------------   -------------     ------------
  
                                    $            19,588          23,813      (17.7) %         100.0 %          100.0 %
                                         ===============  ==============  ==============   =============     ============
  
  </TABLE>
  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 first quarter represented 19.2%
  and 20.5% for 2001 and 2000, respectively.
  
  <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
                                  ==============================================  ==============================================
  </TABLE>
  
  <PAGE>
  
  
  
  
                                     Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1999 vs 2000 vs 2001
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
                                                 Fiscal 2001
                                 -----------------------------------------------
      Segment/Division              Q1        Q2        Q3        Q4     TOTAL
  -------------------------
  Upholstery Fabrics
  <S>                              <C>                                  <C>
      Culp Decorative Fabrics       41,533                               41,533
      Culp Velvets/Prints           30,074                               30,074
      Culp Yarn                      3,319                                3,319
                                 -----------------------------------------------
                                    74,926                               74,926
  
  Mattress Ticking
      Culp Home Fashions            26,952                               26,952
                                 -----------------------------------------------
  
                                   101,878                              101,878
                                 ===============================================
  
                    Percent increase(decrease) from prior year:
  
      Segment/Division
  -------------------------
  
  Upholstery Fabrics
      Culp Decorative Fabrics        (17.8)                               (17.8)
      Culp Velvets/Prints            (16.9)                               (16.9)
      Culp Yarn                      (19.6)                               (19.6)
                                  -----------------------------------------------
                                     (17.5)                               (17.5)
  
  Mattress Ticking
      Culp Home Fashions               7.5                                  7.5
                                  -----------------------------------------------
                                     (12.1)                               (12.1)
                                  ===============================================
  
    Overall Growth Rate
  --------------------------
  Internal (without acquisitions)    (12.1)                               (12.1)
  External                              -                                    -
                                   -----------------------------------------------
                                     (12.1)                               (12.1)
                                   ===============================================
  
  </TABLE>
  <PAGE>
  
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
             for the three months ended July 30, 2000 and August 1, 1999
  
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  first  quarter,  net  sales  decreased  12.1% to $101.9
  million; and the company reported a net loss of $1.8 million, or $0.16 per share
  diluted  (based on 11,292,000  average  shares  outstanding  during the period),
  versus  net  income  of $1.6  million,  or $0.13  per  share  diluted  (based on
  12,219,000 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 first  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 first quarter of fiscal 2000,  upholstery  fabric
  sales decreased 17.5% to $74.9 million and mattress ticking sales increased 7.5%
  to $27.0 million (See Sales by Segment/Division  schedule on Page 5 and Sales by
  Segment/Division  - Trend  Analysis  on Page 7).  International  sales were down
  17.7%  for the  quarter.  The  first  fiscal  quarter  is  historically  not the
  strongest  period of the year for Culp due to  planned  vacations  and  seasonal
  industry-wide plant closings.
  
       The  company  had  anticipated  that the first  fiscal  quarter  would be a
  difficult year-to-year comparison, but sales proved to be considerably less than
  expected.  Key factors  influencing  the company's  shipments were a slowdown in
  consumer  spending on home  furnishings,  especially  in the  promotional  price
  category,  and the relative strength of the dollar which affects Culp's sales to
  customers outside the United States.  The decline in sales of upholstery fabrics
  was offset in part by increased sales at 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. In particular, the ability to manufacture
  the  jacquard  greige (or  unfinished)  goods  that are then  printed to produce
  mattress  ticking  has aided  Culp in  meeting  faster  delivery  schedules  and
  providing improved overall customer service.
  
       Based on current trends,  the company  presently expects to report a profit
  for the second fiscal quarter,  but believes that earnings will be down from the
  year-earlier level. The trend in results over the remainder of this 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  30.6% for the first quarter versus a
  year ago and  decreased  as a percentage  of net sales from 17.6% to 13.9%.  The
  decline was due  principally  to lower sales  volume for the period which led to
  underabsorption  of fixed costs in the company's  upholstery  fabrics operation.
  The company also experienced  some higher costs related to the  consolidation of
  the Phillips weaving plant in Monroe,  NC into the Pageland,  SC facility.  This
  move has been  completed,  and the  company  expects to  benefit  in  subsequent
  periods from reduced operating expenses.
  
       SG&A  EXPENSES  - SG&A  expenses  for  the  first  quarter  increased  as a
  percentage of sales from 13.0% to 13.5%. A portion of these expenses is variable
  based on the level of sales,  and the dollar amount of these  expenses  declined
  8.4% from a year ago.
  
       INTEREST  EXPENSE - Interest  expense of $2.3 million for the first quarter
  was down  slightly  from $2.4  million in the prior year due to  slightly  lower
  average borrowings.
  
       OTHER EXPENSE (INCOME),  NET - Other expense (income) for the first quarter
  totaled  $741,000  compared  with  $555,000 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 first  quarter  was 34.0%,
  unchanged from the first quarter of the prior year.
  
       EBITDA - Due  principally to the loss for the period,  EBITDA for the first
  quarter decreased 49% to $5.1 million from $10.0 million in the prior year.
  
  
  BALANCE SHEET COMMENTS
  
       WORKING  CAPITAL - Accounts  receivable as of July 30, 2000  decreased 5.1%
  from the year-earlier  level, due principally to the lower sales for the period.
  Days sales outstanding  increased to 49 days at July 30, 2000 compared with 45 a
  year ago. The aging of accounts  receivable  was 91.5%  current and less than 30
  days past due  versus  93.2% a year ago.  Inventories  at the close of the first
  quarter  decreased 1.0% from a year ago.  Inventory  turns for the first quarter
  were 4.7 versus  5.4 for the  year-earlier  period.  Operating  working  capital
  (comprised of accounts  receivable,  inventory and accounts  payable) was $108.5
  million at July 30, 2000, down from $111.2 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,  and  spending in the first  quarter  totaled  $2.3
  million. Depreciation for fiscal 2001 is estimated to be $20.5 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 52.0% at
  July 30, 2000 compared with 51.5% a year ago.  Funded debt was $136.8 million at
  July 30,  2000  compared  with  $136.2  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 quarter of fiscal 2001
  under these authorizations.
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "0001.txt", "description": "CULP, INC. 8-K", "secsgml_size_bytes": 45936}]
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": "707749"}, "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) August 22, 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 (2 pages)  and  Financial  Information  Release (9
  pages),  both dated  August 22, 2000,  related to the fiscal 2001 first  quarter
  ended July 30, 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:   August 22, 2000
  FOR IMMEDIATE RELEASE
  
                         CULP REPORTS FIRST QUARTER RESULTS
  
  HIGH POINT,  N. C. (Aug.  22,  2000) - Culp,  Inc.  (NYSE:  CFI) today  reported
  results  for the first  quarter of its 2001  fiscal  year that were in line with
  the preliminary  outlook for the quarter that the Company had publicly  released
  last month.
  
        For the three  months  ended July 30,  2000,  Culp  reported  net sales of
  $101.9  million  compared with $115.9  million a year ago. The company  reported
  a net  loss  for the  quarter  of $1.8  million,  or $0.16  per  share  diluted,
  compared with net income of $1.6  million,  or $0.13 per share  diluted,  in the
  year-earlier period.
  
        Robert  G.  Culp,  III,  chief  executive  officer,   commented,   "As  we
  indicated  last month,  we  encountered  a definite  slowing in incoming  orders
  during  the  quarter.  Our  first  fiscal  quarter  is not a  seasonally  strong
  period for our business;  and as a result of the  lower-than-expected  sales and
  some  plant  consolidation  expenses,  we did  not  operate  profitably  for the
  period.  Based on  current  trends  in our  business,  we  believe  that we will
  achieve  a profit  recovery  in the  second  fiscal  quarter  but  still  expect
  earnings  to be down from a year ago.  Our  results  for fiscal  2001 as a whole
  will  depend  importantly  on the  overall  trend in  consumer  spending on home
  furnishings.  We are  encouraged  that the  traditional  measures that influence
  demand such as consumer  confidence  and employment  levels remain  strong,  but
  the rise in interest  rates since the start of calendar  2000 clearly poses some
  concern.  The  relative  strength  of the  dollar is  another  factor  that will
  influence  our  progress  because  of the impact  this has on our  international
  sales."
  
        Culp added, "A vital strategic focus remains  capitalizing  further on the
  consolidation  within  the  home  furnishings   industry.   Having  one  of  the
  broadest  arrays of  fabrics,  together  with modern  manufacturing  facilities,
  positions  Culp  well to work with the major  furniture  manufacturers  who have
  been  steadily  gaining  market share in recent years.  It is essential  that we
  combine the  consistent  development  of appealing  designs  with our  extensive
  manufacturing  resources.  We are  pleased  with  the  momentum  that  Culp  has
  achieved in the trade  acceptance  of our latest  patterns  and  finishes.  Over
  the balance of the current  fiscal year, we expect that these  placements on our
  customers' furniture lines will translate into an increasing trend in orders."
  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.
  
                                     CULP, INC.
                           Condensed Financial Highlights
                                    (Unaudited)
  
                                                      Three Months Ended
                                               -------------------------------
                                                July 30, 2000     Aug. 1, 1999
                                               --------------    -------------
  Net sales                                    $  101,878,000    $ 115,937,000
  Net income (loss)                            $   (1,756,000)   $   1,597,000
  Net income (loss) per share:
    Basic                                      $        (0.16)   $        0.13
    Diluted                                    $        (0.16)   $        0.13
  Average shares outstanding:
    Basic                                          11,209,000       12,063,000
    Diluted                                        11,292,000       12,219,000
  
        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.
  
                                      - END -
  CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
             FOR THE THREE MONTHS ENDED JULY 30, 2000 AND AUGUST 1, 1999
  
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED (UNAUDITED)
                                                ----------------------------------------------------------------------------------
                                                           Amounts                                          Percent of Sales
                                                ------------------------------                        ------------------------------
                                                  July 30,        August 1,         % Over
                                                    2000            1999           (Under)               2001            2000
                                                --------------  --------------   -------------        --------------  --------------
  Net sales                                 $         101,878         115,937        (12.1) %               100.0  %         100.0 %
  Cost of sales                                        87,704          95,525         (8.2) %                86.1  %          82.4 %
                                                --------------  --------------   -------------        --------------  --------------
           Gross profit                                14,174          20,412        (30.6) %                13.9  %          17.6 %
  
  Selling, general and
    administrative expenses                            13,778          15,038         (8.4) %                13.5  %          13.0 %
                                                --------------  --------------   -------------        --------------  --------------
           Income from operations                         396           5,374        (92.6) %                 0.4  %           4.6 %
  
  Interest expense                                      2,323           2,416         (3.8) %                 2.3  %           2.1 %
  Interest income                                          (7)            (17)       (58.8) %                (0.0) %          (0.0)%
  Other expense (income), net                             741             555         33.5  %                 0.7  %           0.5 %
                                                --------------  --------------   -------------        --------------  --------------
           Income (loss) before income taxes           (2,661)          2,420       (210.0) %                (2.6) %           2.1 %
  
  Income taxes  *                                        (905)            823       (210.0) %                34.0  %          34.0 %
                                                --------------  --------------   -------------        --------------  --------------
  
           Net income (loss)                $          (1,756)          1,597       (210.0) %                (1.7) %           1.4 %
                                                ==============  ==============   =============        ==============  ==============
  
  Net income (loss) per share                          ($0.16)          $0.13       (223.1) %
  Net income (loss) per share, assuming dilution       ($0.16)          $0.13       (223.1) %
  Dividends per share                                  $0.035          $0.035          0.0  %
  Average shares outstanding                           11,209          12,063         (7.1) %
  Average shares outstanding, assuming dilution        11,292          12,219         (7.6) %
  * Percent of sales column is calculated as a % of income (loss) before
  income taxes.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                  JULY 30, 2000, AUGUST 1, 1999 AND APRIL 30, 2000
                                      Unaudited
                               (Amounts in Thousands)
  Amounts                  Increase
                                               ------------------------------         (Decrease)
                                                 July 30,        August 1,   --------------------------     * April 30,
                                                   2000            1999        Dollars         Percent         2000
                                                ------------  ------------  ------------    -----------     ------------
  Current assets
         Cash and cash investments            $       1,654         1,097          557         50.8  %            1,007
         Accounts receivable                         58,851        61,984       (3,133)        (5.1) %           75,223
         Inventories                                 74,600        75,337         (737)        (1.0) %           74,471
         Other current assets                        11,565        10,860          705          6.5  %           10,349
                                                ------------  ------------  ------------    -----------     ------------
                    Total current assets            146,670       149,278       (2,608)        (1.7) %          161,050
  
  Restricted investments                                  0         1,684       (1,684)      (100.0) %                0
  Property, plant & equipment, net                  123,636       120,971        2,665          2.2  %          126,407
  Goodwill                                           49,525        50,920       (1,395)        (2.7) %           49,873
  Other assets                                        5,550         4,969          581         11.7  %            5,548
                                                ------------  ------------  ------------    -----------     ------------
  
                    Total assets              $     325,381       327,822       (2,441)        (0.7) %          342,878
                                                ============  ============  ============    ===========     ============
  
  Current liabilities
         Current maturities of long-term debt $       1,678         1,678            0          0.0  %            1,678
         Accounts payable                            24,942        26,099       (1,157)        (4.4) %           37,287
         Accrued expenses                            19,762        20,309         (547)        (2.7) %           22,108
         Income taxes payable                             0           798         (798)      (100.0) %                0
                                                ------------  ------------  ------------    -----------     ------------
                    Total current liabilities        46,382        48,884       (2,502)        (5.1) %           61,073
  
  Long-term debt                                    135,150       136,228       (1,078)        (0.8) %          135,808
  Deferred income taxes                              17,459        14,583        2,876         19.7  %           17,459
                                                ------------  ------------  ------------    -----------     ------------
                    Total liabilities               198,991       199,695         (704)        (0.4) %          214,340
  
  Shareholders' equity                              126,390       128,127       (1,737)        (1.4) %          128,538
                                                ------------  ------------  ------------    -----------     ------------
  
                    Total liabilities and
                    shareholders' equity      $     325,381       327,822       (2,441)        (0.7) %          342,878
                                                ============  ============  ============    ===========     ============
  
  Shares outstanding                                 11,209        12,040         (831)        (6.9) %           11,209
                                                ============  ============  ============    ===========     ============
  *  Derived from audited financial
  statements.
  CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
             FOR THE THREE MONTHS ENDED JULY 30, 2000 AND AUGUST 1, 1999
                                      Unaudited
                               (Amounts in Thousands)
  THREE MONTHS ENDED
                                                                           ----------------------------------
                                                                                       Amounts
                                                                           --------------------------------
                                                                              July 30,        August 1,
                                                                                2000             1999
                                                                           ---------------  ---------------
  Cash flows from operating activities:
       Net income (loss)                                                 $         (1,756)           1,597
       Adjustments to reconcile net income (loss) to net
          cash provided by operating activities:
              Depreciation                                                          5,060            4,759
              Amortization of intangible assets                                       399              399
              Changes in assets and liabilities:
                  Accounts receivable                                              16,372            8,519
                  Inventories                                                        (129)          (8,267)
                  Other current assets                                             (1,216)          (1,227)
                  Other assets                                                        147              (41)
                  Accounts payable                                                 (6,886)             270
                  Accrued expenses                                                 (2,346)            (717)
                  Income taxes payable                                                  0              798
                                                                           ---------------  ---------------
                      Net cash provided by operating activities                     9,645            6,090
                                                                           ---------------  ---------------
  Cash flows from investing activities:
       Capital expenditures                                                        (2,289)          (2,420)
       Purchases of restricted investments                                              0              (15)
       Purchase of investments to fund deferred compensation liability               (200)               0
       Sale of restricted investments                                                   0            1,671
                                                                           ---------------  ---------------
                      Net cash used in investing activities                        (2,489)            (764)
                                                                           ---------------  ---------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                         0            3,333
       Principal payments on long-term debt                                          (658)          (7,417)
       Change in accounts payable-capital expenditures                             (5,459)             142
       Dividends paid                                                                (392)            (423)
       Payments to acquire common stock                                                 0             (393)
       Proceeds from common stock issued                                                0               20
                                                                           ---------------  ---------------
                      Net cash used in financing activities                        (6,509)          (4,738)
                                                                           ---------------  ---------------
  
  Increase in cash and cash investments                                               647              588
  
  Cash and cash investments at beginning of period                                  1,007              509
                                                                           ---------------  ---------------
  
  Cash and cash investments at end of period                             $          1,654            1,097
                                                                           ===============  ===============
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                    JULY 30, 2000
  FISCAL 00                            FISCAL 01
                                           -------------   ------------------------------------------------   ---------------
                                                Q1              Q1             Q2         Q3         Q4          LTM (5)
                                           -------------   ------------------------------------------------   ---------------
  INVENTORIES
          Inventory turns                           5.4              4.7
  
  RECEIVABLES
          Days sales in receivables                  45               49
          Percent current & less than 30
            days past due                         93.2%            91.5%
  
  WORKING CAPITAL
          Current ratio                            3.1              3.2
          Working capital turnover (4)             4.4              4.3
          Operating working capital (4)        $111,222         $108,509
  
  PROPERTY, PLANT & EQUIPMENT
          Depreciation rate                        8.0%             8.0%
          Percent property, plant &
            equipment are depreciated             49.0%            51.1%
          Capital expenditures                  $22,559 (1)       $2,289
  
  PROFITABILITY
          Return on average total capital          4.8%           (0.3%)                                                4.7%
          Return on average equity                 5.0%           (5.5%)                                                4.8%
          Net income (loss) per share             $0.13          ($0.16)                                               $0.52
          Net income (loss) per share(diluted)    $0.13          ($0.16)                                               $0.52
  
  LEVERAGE (3)
          Total liabilities/equity               155.9%           157.4%
          Funded debt/equity                     106.3%           108.3%
          Funded debt/capital employed            51.5%            52.0%
          Funded debt                          $136,222         $136,828
          Funded debt/EBITDA (LTM) (6)            3.33             3.46
          EBITDA/Interest expense, net (LTM)       4.3              4.2
  
  OTHER
          Book value per share                   $10.64           $11.28
          Employees at quarter end                4,050            3,722
          Sales per employee (annualized)      $116,000         $108,000
          Capital employed (3)                 $264,349         $263,218
          Effective income tax rate               34.0%            34.0%
          EBITDA (2)                             $9,977           $5,114                                             $39,359
          EBITDA/net sales                         8.6%             5.0%                                                8.3%
  (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 ENDED JULY 30, 2000 AND AUGUST 1, 1999
  
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------
                                                  Amounts                                Percent of Total Sales
                                         --------------------------                    ----------------------------
                                          July 30,      August 1,         % Over
  Segment/Division                          2000          1999           (Under)           2001            2000
  ------------------------------------   ------------  ------------   ---------------  -------------   ------------
  Upholstery Fabrics
      Culp Decorative Fabrics         $       41,533        50,516       (17.8) %          40.8 %          43.6 %
      Culp Velvets/Prints                     30,074        36,209       (16.9) %          29.5 %          31.2 %
      Culp Yarn                                3,319         4,129       (19.6) %           3.3 %           3.6 %
                                         ------------  ------------   ---------------  -------------   ------------
                                              74,926        90,854       (17.5) %          73.5 %          78.4 %
  
  Mattress Ticking
      Culp Home Fashions                      26,952        25,083         7.5  %          26.5 %          21.6 %
                                         ------------  ------------   ---------------  -------------   ------------
  
                                    * $      101,878       115,937       (12.1) %         100.0 %         100.0 %
                                         ============  ============   ===============  =============   ============
  * U.S.  sales were $82,290 and $92,124 for the first  quarter of fiscal 2001 and
  fiscal 2000,  respectively.  The percentage decrease in U.S. sales was 10.7% for
  the first quarter.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
             FOR THE THREE MONTHS ENDED JULY 30, 2000 AND AUGUST 1, 1999
  
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                         --------------------------------------------------------------------------------
                                                    Amounts                                   Percent of Total Sales
                                         -------------------------------                   ------------------------------
                                            July 30,        August 1,        % Over
           Geographic Area                    2000            1999           (Under)           2001             2000
  ----------------------------------     ---------------  --------------  --------------   -------------     ------------
  North America (Excluding USA)     $             8,395           7,676        9.4  %          42.9 %           32.2 %
  Europe                                          1,452           2,929      (50.4) %           7.4 %           12.3 %
  Middle East                                     5,043           6,992      (27.9) %          25.7 %           29.4 %
  Far East & Asia                                 3,236           4,309      (24.9) %          16.5 %           18.1 %
  South America                                     306             620      (50.6) %           1.6 %            2.6 %
  All other areas                                 1,156           1,287      (10.2) %           5.9 %            5.4 %
                                         ---------------  --------------  --------------   -------------     ------------
  
                                    $            19,588          23,813      (17.7) %         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 first quarter represented 19.2%
  and 20.5% 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                               41,533
      Culp Velvets/Prints           30,074                               30,074
      Culp Yarn                      3,319                                3,319
                                 -----------------------------------------------
                                    74,926                               74,926
  
  Mattress Ticking
      Culp Home Fashions            26,952                               26,952
                                 -----------------------------------------------
  
                                   101,878                              101,878
                                 ===============================================
  
                    Percent increase(decrease) from prior year:
  
      Segment/Division
  -------------------------
  
  Upholstery Fabrics
      Culp Decorative Fabrics        (17.8)                               (17.8)
      Culp Velvets/Prints            (16.9)                               (16.9)
      Culp Yarn                      (19.6)                               (19.6)
                                  -----------------------------------------------
                                     (17.5)                               (17.5)
  
  Mattress Ticking
      Culp Home Fashions               7.5                                  7.5
                                  -----------------------------------------------
                                     (12.1)                               (12.1)
                                  ===============================================
  
    Overall Growth Rate
  --------------------------
  Internal (without acquisitions)    (12.1)                               (12.1)
  External                              -                                    -
                                   -----------------------------------------------
                                     (12.1)                               (12.1)
                                   ===============================================
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
             for the three months ended July 30, 2000 and August 1, 1999
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  first  quarter,  net  sales  decreased  12.1% to $101.9
  million; and the company reported a net loss of $1.8 million, or $0.16 per share
  diluted  (based on 11,292,000  average  shares  outstanding  during the period),
  versus  net  income  of $1.6  million,  or $0.13  per  share  diluted  (based on
  12,219,000 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 first  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 first quarter of fiscal 2000,  upholstery  fabric
  sales decreased 17.5% to $74.9 million and mattress ticking sales increased 7.5%
  to $27.0 million (See Sales by Segment/Division  schedule on Page 5 and Sales by
  Segment/Division  - Trend  Analysis  on Page 7).  International  sales were down
  17.7%  for the  quarter.  The  first  fiscal  quarter  is  historically  not the
  strongest  period of the year for Culp due to  planned  vacations  and  seasonal
  industry-wide plant closings.
  
       The  company  had  anticipated  that the first  fiscal  quarter  would be a
  difficult year-to-year comparison, but sales proved to be considerably less than
  expected.  Key factors  influencing  the company's  shipments were a slowdown in
  consumer  spending on home  furnishings,  especially  in the  promotional  price
  category,  and the relative strength of the dollar which affects Culp's sales to
  customers outside the United States.  The decline in sales of upholstery fabrics
  was offset in part by increased sales at 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. In particular, the ability to manufacture
  the  jacquard  greige (or  unfinished)  goods  that are then  printed to produce
  mattress  ticking  has aided  Culp in  meeting  faster  delivery  schedules  and
  providing improved overall customer service.
  
       Based on current trends,  the company  presently expects to report a profit
  for the second fiscal quarter,  but believes that earnings will be down from the
  year-earlier level. The trend in results over the remainder of this 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  30.6% for the first quarter versus a
  year ago and  decreased  as a percentage  of net sales from 17.6% to 13.9%.  The
  decline was due  principally  to lower sales  volume for the period which led to
  underabsorption  of fixed costs in the company's  upholstery  fabrics operation.
  The company also experienced  some higher costs related to the  consolidation of
  the Phillips weaving plant in Monroe,  NC into the Pageland,  SC facility.  This
  move has been  completed,  and the  company  expects to  benefit  in  subsequent
  periods from reduced operating expenses.
  
       SG&A  EXPENSES  - SG&A  expenses  for  the  first  quarter  increased  as a
  percentage of sales from 13.0% to 13.5%. A portion of these expenses is variable
  based on the level of sales,  and the dollar amount of these  expenses  declined
  8.4% from a year ago.
  
       INTEREST  EXPENSE - Interest  expense of $2.3 million for the first quarter
  was down  slightly  from $2.4  million in the prior year due to  slightly  lower
  average borrowings.
  
       OTHER EXPENSE (INCOME),  NET - Other expense (income) for the first quarter
  totaled  $741,000  compared  with  $555,000 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 first  quarter  was 34.0%,
  unchanged from the first quarter of the prior year.
  
       EBITDA - Due  principally to the loss for the period,  EBITDA for the first
  quarter decreased 49% to $5.1 million from $10.0 million in the prior year.
  
  BALANCE SHEET COMMENTS
  
       WORKING  CAPITAL - Accounts  receivable as of July 30, 2000  decreased 5.1%
  from the year-earlier  level, due principally to the lower sales for the period.
  Days sales outstanding  increased to 49 days at July 30, 2000 compared with 45 a
  year ago. The aging of accounts  receivable  was 91.5%  current and less than 30
  days past due  versus  93.2% a year ago.  Inventories  at the close of the first
  quarter  decreased 1.0% from a year ago.  Inventory  turns for the first quarter
  were 4.7 versus  5.4 for the  year-earlier  period.  Operating  working  capital
  (comprised of accounts  receivable,  inventory and accounts  payable) was $108.5
  million at July 30, 2000, down from $111.2 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,  and  spending in the first  quarter  totaled  $2.3
  million. Depreciation for fiscal 2001 is estimated to be $20.5 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 52.0% at
  July 30, 2000 compared with 51.5% a year ago.  Funded debt was $136.8 million at
  July 30,  2000  compared  with  $136.2  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 quarter of fiscal 2001
  under these authorizations.