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) June 5, 2001
  
                                           CULP, INC.
  
                    (Exact name of registrant as specified in its charter)
  
  
        North Carolina                      0-12781               56-1001967
   (State or other jurisdiction of    (Commission File No.)      (IRS Employer
        incorporation)                                         Identification No.)
  
  
  
                                     101 South Main Street
                               High Point, North Carolina  27260
                           (Address of principal executive offices)
                                        (336) 889-5161
                    (Registrant's telephone number, including area code)
  
  
  
  
     _____________________________________________________________________________
                (Former name or former address, if changed since last report)
  
  
  
  
  
  --------------------------------------------------------------------------------
  
  
  
  
  <PAGE>
  
  
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages) and  Financial  Information  Release (10
  pages),  both dated June 5, 2001,  related to the fiscal 2001 fourth quarter and
  year ended April 29, 2001.
  
  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:   June 5, 2001
  
  <PAGE>
  
  FOR IMMEDIATE RELEASE
  
  
          CULP REPORTS FISCAL 2001 RESULTS INCLUDING RESTRUCTURING CHARGE
                               ----------------------
                 FOURTH QUARTER INCLUDES PROFIT OF $0.13 PER SHARE
                      BEFORE RESTRUCTURING AND RELATED CHARGES
  
  HIGH POINT,  N. C. (June 5, 2001) -- As  anticipated,  Culp,  Inc.  (NYSE:  CFI)
  today  reported a loss for its fourth  quarter  and full 2001 fiscal year due to
  charges  from the  Company's  announced  actions  to reduce  costs and  increase
  efficiency  and  due  to the  industry-wide  slowdown  in  demand  in  the  home
  furnishings  industry.  The company  indicated that excluding  restructuring and
  related  charges,  it was profitable in the fourth fiscal quarter and expects to
  operate profitably for fiscal 2002 as a whole.
  
        For the three  months  ended April 29,  2001,  Culp  reported net sales of
  $101.1   million   compared   with   $129.4   million  a  year  ago.   Including
  restructuring  costs,  the  Company  reported a net loss for the quarter of $1.4
  million,  or $0.13 per share diluted,  compared with net income of $3.2 million,
  or $0.28 per share diluted, in the year-earlier period.
  
        Net  sales  for  fiscal  2001  totaled   $409.8   million   compared  with
  $488.1-million in the year-earlier  period.  Including  restructuring costs, the
  Company  reported  a net loss for  fiscal  2001 of $8.3  million,  or $0.74  per
  share  diluted,  compared  with net income of $9.4  million,  or $0.80 per share
  diluted, in fiscal 2000.
  
        Robert  G.  Culp,  III,  chief  executive  officer,   commented,  "We  had
  expected to report a net loss for the fourth  quarter  and full year  because of
  the  actions  we are  taking  to  reduce  costs and  ensure  Culp's  competitive
  position   during  this  period  of  reduced   demand.   Although   several  key
  demographic  trends  suggest  basic,   underlying  growth  in  demand  for  home
  furnishings,  our fiscal 2001 year proved to be a challenging  time for Culp and
  the  industry as a whole.  We believe  that the longer term  outlook is positive
  based on the growth projected for such  fundamental  indicators as new household
  formations,  but the current  slowdown  in business is clearly  going to persist
  into our fiscal 2002 year.  The impact of this  softness  in incoming  orders on
  our  income  statement  is  being  aggravated  by  the  continuing   decline  in
  international  sales that are being  affected by the high relative  value of the
  U.S. dollar against foreign currencies.
  
        Culp noted that the company  earned $1.4 million,  or $0.13 per share,  in
  the fourth fiscal quarter before  restructuring  and related charges.  He added,
  "Our goal is to restore  consistent  profitability  for Culp. We are  encouraged
  by the  performance in the fourth quarter when our efficiency was  significantly
  affected  by the  relocation  of key  manufacturing  equipment  and other  major
  operational  changes.  Looking at fiscal  2002,  we  believe  that sales for the
  first fiscal  quarter,  which is not  typically a seasonally  strong  period for
  our business,  will trail the  year-earlier  level of $101.9  million.  Although
  this will likely result in a loss for the period,  excluding  charges related to
  the  restructuring,  we  believe  that  this  will be less than the loss of $1.8
  million,   or  $0.16  per  share,  in  the  year-earlier   period.   Results  in
  subsequent  quarters  will be aided by more of the benefit of the  restructuring
  plan and other  actions we are  taking to reduce  costs.  For  fiscal  2002 as a
  whole,  we are  optimistic  about  reporting net earnings that will  represent a
  rewarding  turnaround  and  reinforce  our  potential  to restore the  company's
  historical level of profitability.
  
        "We  recognize  the cyclical  factors that  historically  have  influenced
  demand for  housing  and home  furnishings  and remain  confident  about  Culp's
  opportunity  to progress as one of the leading  suppliers of upholstery  fabrics
  and mattress ticking.  Current market  conditions have required us, however,  to
  downsize  and   consolidate   our   operations.   The  total  charges  from  the
  restructuring  and cost  reduction  initiatives  are now expected to approximate
  $8.5  million.  This  is up from  our  earlier  estimate  of  $6.0  million  due
  principally  to  additional  relocation  costs related to the  consolidation  of
  capacity  in our Culp  Decorative  Fabrics  unit.  We recorded  $7.4  million of
  these costs  during  fiscal 2001 and expect to complete  these steps  during the
  first  half  of  fiscal  2002.  Our  target  is  to  achieve   annualized   cost
  reductions of at least $12 million when this program is fully implemented."
  
        Culp   concluded,   "It  is  especially   noteworthy   that  we  generated
  sufficient  cash from  operations  for fiscal 2001 to reduce  debt and  payables
  related to capital  expenditures  by $31.2 million.  We were in compliance  with
  our  credit  agreement  at the end of the  fiscal  year and are  expecting  that
  internally  generated funds will allow us to continue  strengthening our balance
  sheet  during  fiscal  2002.  Our  capital   expenditures   during  fiscal  2001
  declined  from  $22.6  million  to  $8.1  million,  and  we  are  budgeting  new
  investments of only $4 million for fiscal 2002."
  
        Culp, Inc. is one of the world's largest  marketers of upholstery  fabrics
  for furniture  and is a leading  marketer of mattress  ticking for bedding.  The
  Company's  fabrics are used  principally in the  production of  residential  and
  commercial furniture and bedding products.
  
        This  release  contains statements  that  may be  deemed  "forward-looking
  statements"  within the meaning of the federal  securities  laws,  including the
  Private Securities Litigation Reform Act of 1995. Such statements are inherently
  subject to risks and  uncertainties.  Forward-looking  statements are statements
  that include projections, expectations or beliefs about future events or results
  or otherwise are not statements of historical  fact.  Such  statements are often
  characterized  by  qualifying  words such as  "expect,"  "believe,"  "estimate,"
  "plan" and "project"  and their  derivatives.  Factors that could  influence the
  matters  discussed in such  statements  include the level of housing  starts and
  sales of xisting homes,  consumer  confidence,  trends in disposable  income and
  general economic conditions. Decreases in these economic indicators could have a
  negative effect on the Company's business and prospects.  Likewise, increases in
  interest rates, particularly home mortgage rates, and increases in consumer debt
  or the general rate of inflation, could affect the Company adversely. Because of
  the  significant  percentage of the Company's  sales derived from  international
  shipments,  strengthening of the U.S. dollar against other currencies could make
  the Company's products less competitive on the basis of price in markets outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the Company's products.
  
  
                                     CULP, INC.
                           Condensed Financial Highlights
  
  
                                                      Three Months Ended
                                               -------------------------------
                                                  April 29,         April 30,
                                                    2001              2000
                                               --------------    -------------
  Net sales                                    $  101,071,000    $ 129,419,000
  Net income  (loss)                           $  (1,427,000)    $   3,191,000
  Net income (loss) per share:
    Basic                                      $       (0.13)    $        0.28
    Diluted                                    $       (0.13)    $        0.28
  Average shares outstanding:
    Basic                                          11,212,000       11,213,000
    Diluted                                        11,212,000       11,298,000
  
                                                        Fiscal Year Ended
                                               -------------------------------
                                                  April 29,          April 30,
                                                     2001              2000
                                               --------------    -------------
  Net sales                                    $  409,810,000    $ 488,079,000
  Net income (loss)                            $  (8,311,000)    $   9,380,000
  Net income (loss) per share:
    Basic                                      $       (0.74)    $        0.81
    Diluted                                    $       (0.74)    $        0.80
  Average shares outstanding:
    Basic                                          11,210,000       11,580,000
    Diluted                                        11,210,000       11,681,000
  
  
                                         -END-
  <PAGE>
  
                     CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 29, 2001 AND APRIL 30, 2000
  
                  (Amounts in Thousands, Except for Per Share Data)
  <TABLE>
  <CAPTION>
  
                                                                THREE MONTHS ENDED (UNAUDITED)
                                              -------------------------------------------------------------------
                                                      Amounts                                Percent of Sales
                                              -------------------------                    ----------------------
                                              April 29,     April 30,      % Over
                                                 2001         2000        (Under)            2001         2000
                                              -----------  ------------  -----------       -----------  ---------
  <S>                                      <C>                <C>          <C>               <C>          <C>
  Net sales                                $     101,071       129,419      (21.9)%           100.0 %      100.0
  Cost of sales                                   85,978       107,342      (19.9)%            85.1 %       82.9
                                              -----------  ------------  -----------       -----------  ---------
         Gross profit                             15,093        22,077      (31.6)%            14.9 %       17.1
  
  Selling, general and
    administrative expenses                       10,617        14,913      (28.8)%            10.5 %       11.5
  Restructuring expense                            3,121             0      100.0 %             3.1 %        0.0
                                              -----------  ------------  -----------       -----------  ---------
         Income from operations                    1,355         7,164      (81.1)%             1.3 %        5.5
  
  Interest expense                                 2,284         2,255        1.3 %             2.3 %        1.7
  Interest income                                     (6)          (10)     (40.0)%            (0.0)%       (0.0)
  Other expense (income), net                      1,209           366      230.3 %             1.2 %        0.3
                                              -----------  ------------  -----------       -----------  ---------
         Income (loss) before income taxes        (2,132)        4,553     (146.8)%            (2.1)%        3.5
  
  Income taxes  *                                   (705)        1,362     (151.8)%            33.1 %       29.9
                                              -----------  ------------  -----------       -----------  ---------
         Net income (loss)                 $      (1,427)        3,191     (144.7)%            (1.4)%        2.5
                                              ===========  ============  ===========       ===========  =========
  
  Net income (loss) per share                     ($0.13)        $0.28     (146.4)%
  Net income (loss) per share, assuming dilution  ($0.13)        $0.28     (146.4)%
  Dividends per share                                 $0        $0.035     (100.0)%
  Average shares outstanding                      11,212        11,213       (0.0)%
  Average shares outstanding, assuming dilution   11,212        11,298       (0.8 %
  
  
  
                                                                     TWELVE MONTHS ENDED
                                              -------------------------------------------------------------------
                                                      Amounts                                Percent of Sales
                                              -------------------------                    ----------------------
                                              April 29,     April 30,      % Over
                                                 2001         2000        (Under)            2001         2000
                                              -----------  ------------  -----------       -----------  ---------
  Net sales                                $     409,810       488,079      (16.0)%           100.0 %      100.0
  Cost of sales                                  353,823       403,414      (12.3)%            86.3 %       82.7
                                              -----------  ------------  -----------       -----------  ---------
          Gross profit                            55,987        84,665      (33.9)%            13.7 %       17.3
  
  Selling, general and
    administrative expenses                       50,366        59,935      (16.0)%            12.3 %       12.3
  Restructuring expense                            5,625             0      100.0 %             1.4 %        0.0
                                              -----------  ------------  -----------       -----------  ---------
          Income (loss) from operations               (4)       24,730     (100.0)%            (0.0)%        5.1
  
  Interest expense                                 9,114         9,521       (4.3)%             2.2 %        2.0
  Interest income                                    (46)          (51)      (9.8)%            (0.0)%       (0.0)
  Other expense (income), net                      3,336         1,566      113.0 %             0.8 %        0.3
                                              -----------  ------------  -----------       -----------  ---------
          Income (loss) before income taxes      (12,408)       13,694     (190.6)%            (3.0)%        2.8
  
  Income taxes  *                                 (4,097)        4,314     (195.0)%            33.0 %       31.5
                                              -----------  ------------  -----------       -----------  ---------
          Net income (loss)                $      (8,311)        9,380     (188.6)%            (2.0)%        1.9
                                              ===========  ============  ===========       ===========  =========
  
  Net income (loss) per share                     ($0.74)        $0.81     (191.4)%
  Net income (loss) per share, assuming dilution  ($0.74)        $0.80     (192.5)%
  Dividends per share                             $0.105         $0.14      (25.0)%
  Average shares outstanding                      11,210        11,580       (3.2)%
  Average shares outstanding, assuming dilution   11,210        11,681       (4.0)%
  
  
  * Percent of sales column is  calculated  as a % of income  (loss) before income taxes.
  </TABLE>
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                          APRIL 29, 2001 AND APRIL 30, 2000
  
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
                                                                 Amounts                     Increase
                                                    ------------------------------          (Decrease)
                                                      April 29,      (1) April 30, ----------------------------
                                                        2001              2000        Dollars          Percent
                                                   --------------   -------------  ------------     -----------
  <S>                                            <C>                  <C>              <C>              <C>
  Current assets
         Cash and cash investments               $         1,207           1,007           200          19.9 %
         Accounts receivable                              57,849          75,223      (17,374)        (23.1) %
         Inventories                                      59,997          74,471      (14,474)        (19.4) %
         Other current assets                              7,856          10,349       (2,493)        (24.1) %
                                                   --------------   -------------  ------------     -----------
                     Total current assets                126,909         161,050      (34,141)        (21.2) %
  
  Property, plant & equipment, net                       112,322         126,407      (14,085)        (11.1) %
  Goodwill                                                48,478          49,873       (1,395)         (2.8) %
  Other assets                                             1,871           6,650       (4,779)        (71.9) %
                                                   --------------   -------------  ------------     -----------
  
                     Total assets                $       289,580         343,980      (54,400)        (15.8) %
                                                   ==============   =============  ============     ===========
  
  
  Current liabilities
         Current maturities of long-term debt    $         2,488           1,678           810          48.3 %
         Accounts payable                                 27,371          37,287       (9,916)        (26.6) %
         Accrued expenses                                 17,153          22,108       (4,955)        (22.4) %
         Income taxes payable                              1,268               0         1,268         100.0 %
                                                   --------------   -------------  ------------     -----------
                     Total current liabilities            48,280          61,073      (12,793)        (20.9) %
  
  Long-term debt                                         109,168         135,808      (26,640)        (19.6) %
  
  Deferred income taxes                                   10,330          17,459       (7,129)        (40.8) %
                                                   --------------   -------------  ------------     -----------
                     Total liabilities                   167,778         214,340      (46,562)        (21.7) %
  
  Shareholders' equity                                   121,802         129,640       (7,838)         (6.0) %
                                                   --------------   -------------  ------------     -----------
  
                     Total liabilities and
                     shareholders' equity        $       289,580         343,980      (54,400)        (15.8) %
                                                   ==============   =============  ============     ===========
  
  Shares outstanding                                      11,221          11,209            12           0.1 %
                                                   ==============   =============  ============     ===========
  
  </TABLE>
  
  (1) As restated (see Restatement paragraph within Financial Narrative)
  
  <PAGE>
                                CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
            FOR THE TWELVE MONTHS ENDED APRIL 29, 2001 AND APRIL 30, 2000
  
                               (Amounts in Thousands)
  <TABLE>
  <CAPTION>
                                                                             TWELVE MONTHS ENDED
                                                                      ------------------------------
                                                                                  Amounts
                                                                      ------------------------------
                                                                         April 29,       April 30,
                                                                           2001            2000
                                                                      --------------  --------------
  <S>                                                                  <C>                <C>
  Cash flows from operating activities:
       Net income (loss)                                               $     (8,311)           9,380
       Adjustments to reconcile net income (loss) to net
          cash provided by operating activities:
              Depreciation                                                   19,391           19,462
              Amortization of intangible assets                               1,591            1,596
              Amortization of deferred compensation                             360              250
              Provision for deferred income taxes                            (5,394)           2,176
              Restructuring expense                                           5,625                0
              Changes in assets and liabilities:
                 Accounts receivable                                         17,374           (4,720)
                 Inventories                                                 14,474           (7,401)
                 Other current assets                                           827              (16)
                 Other assets                                                   171             (770)
                 Accounts payable                                            (4,530)           1,029
                 Accrued expenses                                            (6,767)             890
                 Income taxes payable                                         1,268                0
                                                                       --------------  --------------
                     Net cash provided by operating activities               36,079           21,876
                                                                       --------------  --------------
  Cash flows from investing activities:
       Capital expenditures                                                  (8,050)         (22,559)
       Purchases of restricted investments                                        0              (40)
       Sale of investments related to deferred compensation plan              4,547                0
       Sale of restricted investments                                             0            3,380
                                                                       --------------  --------------
                     Net cash used in investing activities                   (3,503)         (19,219)
                                                                       --------------  --------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                 564            9,543
       Principal payments on long-term debt                                 (26,394)         (14,047)
       Change in accounts payable-capital expenditures                       (5,386)          10,571
       Dividends paid                                                        (1,177)          (1,611)
       Payments to acquire common stock                                           0           (6,636)
       Proceeds from common stock issued                                         17               21
                                                                       --------------  --------------
                     Net cash used in financing activities                  (32,376)          (2,159)
                                                                       --------------  --------------
  
  Increase in cash and cash investments                                         200              498
  
  Cash and cash investments at beginning of period                            1,007              509
                                                                       --------------  --------------
  
  Cash and cash investments at end of period                           $      1,207            1,007
                                                                       ==============  ==============
  </TABLE>
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                   APRIL 29, 2001
  <TABLE>
  <CAPTION>
                                                        FISCAL 00                          FISCAL 01
                                                      ----------------  --------------------------------------------------  ----------
                                                           Q4 (6)             Q1 (6)       Q2 (6)        Q3          Q4       LTM (4)
                                                      ----------------  --------------------------------------------------  ----------
  <S>                                                 <C>               <C>            <C>         <C>         <C>           <C>
  INVENTORIES
             Inventory turns                                   5.5              4.7          5.1         4.9         5.4
  
  RECEIVABLES
             Days sales in receivables                          53               49           52          48          52
             Percent current & less than 30
               days past due                                 93.5%            91.5%        94.7%       94.4%       95.5%
  
  WORKING CAPITAL
             Current ratio                                     2.6              3.2          2.7         3.0         2.6
             Working capital turnover (3)                      4.4              4.3          4.2         4.1         4.0
             Operating working capital (3)                $112,407         $108,509     $106,607     $94,546     $90,475
  
  PROPERTY, PLANT & EQUIPMENT
             Depreciation rate                                7.9%             8.0%         7.9%        7.5%        7.4%
             Percent property, plant &
               equipment are depreciated                     49.6%            51.1%        52.6%       53.8%       54.9%
             Capital expenditures                          $22,559 (1)       $2,289       $1,370      $2,873      $1,518
  
  PROFITABILITY
             Return on average total capital                  7.2%           (0.3%)         2.7%      (6.4%)        0.2%       (0.9%)
             Return on average equity                        10.0%           (5.5%)         1.1%     (17.6%)      (4.7%)       (6.6%)
             Net income (loss) per share                     $0.28          ($0.16)        $0.03     ($0.49)     ($0.13)      ($0.74)
             Net income (loss) per share (diluted)           $0.28          ($0.16)        $0.03     ($0.49)     ($0.13)      ($0.74)
  
  LEVERAGE
             Total liabilities/equity                       165.3%           156.1%       154.6%      149.1%      137.7%
             Funded debt/equity                             106.1%           107.3%        99.5%       99.8%       91.7%
             Funded debt/capital employed                    51.5%            51.8%        49.9%       50.0%       47.8%
             Funded debt                                  $137,486         $136,828     $126,757    $121,372    $111,656
             Funded debt/EBITDA (LTM) (5)                     3.08             3.44         3.57        4.28        4.23
             EBITDA/Interest expense, net (LTM)                4.7              4.2          3.9         2.8         2.0
  
  OTHER
             Book value per share                           $11.57           $11.37       $11.37      $10.85      $10.85
             Employees at quarter end                        3,825            3,722        3,623       3,486       3,127
             Sales per employee (annualized)              $133,000         $108,000     $121,000    $108,000    $122,000
             Capital employed                             $267,126         $264,320     $254,198    $242,958    $233,458
             Effective income tax rate                       29.9%            34.0%        37.9%       33.0%       33.1%
             EBITDA (2)                                    $12,248           $5,177       $8,265      ($648)      $5,208      $18,002
             EBITDA/net sales                                 9.5%             5.1%         7.4%      (0.7%)        5.2%         4.4%
  
    (1) Expenditures for entire year
    (2) Earnings before interest, income taxes, and depreciation & amortization.
    (3) Working capital for this calculation is accounts receivable, inventories and accounts payable.
    (4) LTM represents "Latest Twelve Months"
    (5) EBITDA includes capitalized interest and certain cash and non-cash charges, as defined by the company's credit agreement.
    (6) As restated (see Restatement paragraph within Financial Narrative)
  
  </TABLE>
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                              SALES BY SEGMENT/DIVISION
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 29, 2001 AND APRIL 30, 2000
  
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
                                                             THREE MONTHS ENDED (UNAUDITED)
                                         ------------------------------------------------------------------------
                                                 Amounts                               Percent of Total Sales
                                         ------------------------                    ----------------------------
                                         April 29,    April 30,         % Over
  Segment/Division                          2001         2000           (Under)       2001           2000
  -----------------------------------    -----------  -----------    --------------  ------------   -------------
  <S>                                <C>               <C>           <C>              <C>            <C>
  Upholstery Fabrics
      Culp Decorative Fabrics        $       41,046       56,130       (26.9) %         40.6 %         43.4 %
      Culp Velvets/Prints                    31,327       39,501       (20.7) %         31.0 %         30.5 %
      Culp Yarn                               2,417        4,809       (49.7) %          2.4 %          3.7 %
                                         -----------  -----------    --------------  ------------   -------------
                                             74,790      100,440       (25.5) %         74.0 %         77.6 %
  
  Mattress Ticking
      Culp Home Fashions                     26,281       28,979        (9.3) %         26.0 %         22.4 %
                                         -----------  -----------    --------------  ------------   -------------
  
                                   * $      101,071      129,419       (21.9) %        100.0 %        100.0 %
                                         ===========  ===========    ==============  ============   =============
  
  
                                                                   TWELVE MONTHS ENDED
                                         ------------------------------------------------------------------------
                                                 Amounts                               Percent of Total Sales
                                         ------------------------                    ----------------------------
                                         April 29,    April 30,         % Over
  Segment/Division                          2001         2000           (Under)       2001           2000
  -----------------------------------    -----------  -----------    --------------  ------------   -------------
  Upholstery Fabrics
      Culp Decorative Fabrics        $      170,326      213,197       (20.1) %         41.6 %         43.7 %
      Culp Velvets/Prints                   122,105      151,543       (19.4) %         29.8 %         31.0 %
      Culp Yarn                              12,581       17,570       (28.4) %          3.1 %          3.6 %
                                         -----------  -----------    --------------  ------------   -------------
                                            305,012      382,310       (20.2) %         74.4 %         78.3 %
  
  Mattress Ticking
      Culp Home Fashions                    104,798      105,769        (0.9) %         25.6 %         21.7 %
                                         -----------  -----------    --------------  ------------   -------------
  
                                   * $      409,810      488,079       (16.0) %        100.0 %        100.0 %
                                         ===========  ===========    ==============  ============   =============
  
  </TABLE>
  
  * U.S. sales were $85,314 and $101,276 for the fourth quarter of fiscal 2001 and
  fiscal 2000,  respectively;  and $331,986 and $376,975 for the twelve  months of
  fiscal 2001 and fiscal 2000, respectively. The percentage decrease in U.S. sales
  was 15.8% for the fourth quarter and a decrease of 11.9% for the twelve months.
  
  <PAGE>
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 29, 2001 AND APRIL 30, 2000
  
  
                               (Amounts in thousands)
  <TABLE>
  <CAPTION>
  
                                                                  THREE MONTHS ENDED (UNAUDITED)
                                         ---------------------------------------------------------------------------------
                                                    Amounts                                    Percent of Total Sales
                                         -------------------------------                    ------------------------------
                                            April 29,        April 30,       % Over
           Geographic Area                    2001             2000          (Under)            2001            2000
  ----------------------------------     ---------------   -------------  --------------    -------------    -------------
  <S>                               <C>                       <C>          <C>                <C>             <C>
  North America (Excluding USA)     $             7,872           9,968     (21.0) %            50.0 %          35.4 %
  Europe                                          1,334           2,655     (49.8) %             8.5 %           9.4 %
  Middle East                                     3,375           8,837     (61.8) %            21.4 %          31.4 %
  Far East & Asia                                 2,394           5,014     (52.3) %            15.2 %          17.8 %
  South America                                     296             570     (48.1) %             1.9 %           2.0 %
  All other areas                                   486           1,099     (55.8) %             3.1 %           3.9 %
                                         ---------------   -------------  --------------    -------------    -------------
  
                                    $            15,757          28,143     (44.0) %           100.0 %         100.0 %
                                         ===============   =============  ==============    =============    =============
  
  
                                                                       TWELVE MONTHS ENDED
                                         ---------------------------------------------------------------------------------
                                                    Amounts                                    Percent of Total Sales
                                         -------------------------------                    ------------------------------
                                            April 29,        April 30,       % Over
           Geographic Area                    2001             2000          (Under)            2001            2000
  ----------------------------------     ---------------   -------------  --------------    -------------    -------------
  North America (Excluding USA)     $            34,049          36,032      (5.5) %            43.8 %          32.4 %
  Europe                                          6,262          16,351     (61.7) %             8.0 %          14.7 %
  Middle East                                    17,831          32,929     (45.9) %            22.9 %          29.6 %
  Far East & Asia                                15,497          19,102     (18.9) %            19.9 %          17.2 %
  South America                                   1,028           2,343     (56.1) %             1.3 %           2.1 %
  All other areas                                 3,157           4,347     (27.4) %             4.1 %           3.9 %
                                         ---------------   -------------  --------------    -------------    -------------
  
                                    $            77,824         111,104     (30.0) %           100.0 %         100.0 %
                                         ===============   =============  ==============    =============    =============
  
  </TABLE>
  
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years follows:  fiscal  1997-$101,571  (25%);  fiscal  1998-$137,223
  (29%);  fiscal  1999-$113,354  (23%);  fiscal  2000-$111,104  (23%);  and fiscal
  2001-$77,824 (19%). International sales for the fourth quarter represented 15.6%
  and 21.7% 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
  ----------------------------------
  <S>                                       <C>          <C>         <C>           <C>       <C>
  Upholstery Fabrics
      Culp Decorative Fabrics                 41,533       46,792      40,955        41,046    170,326
      Culp Velvets/Prints                     30,074       32,073      28,631        31,327    122,105
      Culp Yarn                                3,319        4,134       2,711         2,417     12,581
                                        ----------------------------------------------------------------
                                              74,926       82,999      72,297        74,790    305,012
  
  Mattress Ticking
      Culp Home Fashions                      26,952       27,982      23,583        26,281    104,798
                                       ----------------------------------------------------------------
                                             101,878      110,981      95,880       101,071    409,810
                                       ================================================================
  
  
                      Percent increase(decrease) from prior year:
  
            Segment/Division
  ----------------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics                 (17.8)       (17.8)      (17.5)        (26.9)     (20.1)
      Culp Velvets/Prints                     (16.9)       (23.2)      (15.9)        (20.7)     (19.4)
      Culp Yarn                               (19.6)        (5.1)      (36.6)        (49.7)     (28.4)
                                        ----------------------------------------------------------------
                                              (17.5)       (19.4)      (17.8)        (25.5)     (20.2)
  
  Mattress Ticking
      Culp Home Fashions                        7.5          5.6        (6.4)         (9.3)      (0.9)
                                       ----------------------------------------------------------------
                                              (12.1)       (14.3)      (15.3)        (21.9)     (16.0)
                                       ================================================================
  
          Overall Growth Rate
  
  Internal (without acquisitions)             (12.1)       (14.3)      (15.3)        (21.9)     (16.0)
  External                                        -            -           -             -          -
                                       ================================================================
                                              (12.1)       (14.3)      (15.3)        (21.9)     (16.0)
                                       ================================================================
  
  </TABLE>
  
  <PAGE>
  
                      CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and twelve month periods ended April 29, 2001 and April 30, 2000
  
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  fourth  quarter,  net sales  decreased  21.9% to $101.1
  million; and the company reported a net loss of $1.4 million, or $0.13 per share
  diluted (based on 11,212,000  average shares  outstanding)  versus net income of
  $3.2 million,  or $0.28 per share diluted  (based on 11,298,000  average  shares
  outstanding)  in the fourth  quarter of fiscal 2000.  For fiscal 2001, net sales
  decreased 16.0% to $409.8 million,  and the company  reported a net loss of $8.3
  million,  or $0.74  per  share  diluted  (based  on  11,210,000  average  shares
  outstanding),  versus net  income of $9.4  million,  or $0.80 per share  diluted
  (based on 11,681,000  average shares  outstanding),  a year ago. The results for
  the fourth  quarter and fiscal 2001 included  charges before taxes totaling $4.2
  million and $7.4 million,  respectively, for restructuring actions and inventory
  write-downs.  Without the restructuring and related charges, earnings would have
  been $1.4 million,  or $0.13 per share diluted for the fourth  quarter,  and the
  loss would have been $3.3 million, or $0.30 per share diluted for fiscal 2001 as
  a whole.
  
       The company's  long-term,  strategic plan encompasses  several  competitive
  initiatives:
  
       Broad Product  Offering - continuing to market one of the broadest  product
       lines in upholstery fabrics and mattress ticking,  consistent with customer
       demand.  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.  Ownership of  resources in the home  furnishings
       industry  is  becoming  increasingly  concentrated,  and  the  company  has
       successfully  been able to  capitalize  on its size and product  breadth to
       supply more of the needs of existing customers.  One customer accounted for
       approximately  11% of net  sales  during  fiscal  2001.  Culp  is  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  computer-assisted  design  systems and
       promotes  sharing  of  innovative   designs  across  product  lines.   Culp
       encourages active customer involvement in the entire design process; and
  
       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.
  
       RESTRUCTURING  ACTIONS  - During  fiscal  2001,  the  company  initiated  a
  restructuring plan intended to lower costs, increase efficiency and position the
  company to operate profitably within the current  environment of reduced demand.
  The plan  involves the  consolidation  of certain  manufacturing  capacity,  the
  closure of some  facilities and an extensive  reduction in selling,  general and
  administrative   expenses.   The  company  also  recognized   certain  inventory
  write-downs as part of this initiative. The total charge from the restructuring,
  cost  reduction and inventory  write-down  initiatives is expected to total $8.5
  million,  about $3.5 million of which  represents  non-cash  items.  The company
  recognized $7.4 million of restructuring  and related charges during fiscal 2001
  and expects to record the remaining charges related to restructuring  during the
  first half of fiscal  2002.  The  company  expects to  realize  annualized  cost
  reductions of at least $12 million when these steps are fully implemented.
  
       NET SALES - Compared with fiscal 2000,  upholstery  fabric sales for fiscal
  2001 decreased  20.2% to $305.0  million,  and mattress  ticking sales decreased
  0.9% to $104.8  million  (See Sales by  Segment/Division  schedule on Page 5 and
  Sales by Segment/Division - Trend Analysis on Page 7).  International sales were
  down 30.0% for fiscal 2001.
  
       The company  had  previously  announced  that it did not expect to report a
  profit for the full year,  excluding  restructuring  and  related  charges.  Key
  factors  influencing  the  year-to-year  comparison  were the sharp,  persistent
  weakness in consumer spending on home furnishings, especially in the promotional
  price  category,  and the strength in the U.S. dollar that had an adverse impact
  on exports.  The slowdown in industry-wide demand also led to a decline in sales
  at Culp Home  Fashions  (primarily  mattress  ticking)  for the third and fourth
  quarters, resulting in a slight decline in sales for the full year.
  
       GROSS PROFIT - Gross profit declined 33.9% for fiscal 2001 and decreased as
  a percentage of net sales from 17.3% to 13.7%.  The decline was due  principally
  to lower sales volume that led to  unfavorable  cost  variances in the company's
  upholstery fabrics  operation.  The company is taking steps to lower expenses by
  consolidating certain operations and reducing personnel,  but does not expect to
  realize the full benefit of these actions until the second half of fiscal 2002.
  
       SG&A EXPENSES - SG&A expenses for fiscal 2001 declined 16.0% from the prior
  year. Reflecting the momentum of the company's actions to reduce expenses,  SG&A
  expenses for the fourth quarter declined 28.8% from the year-earlier period and,
  as a percentage of sales, declined from 11.5% to 10.5%.
  
       INTEREST   EXPENSE  -  Interest  expense  for  fiscal  2001  declined  from
  $9.5-million to $9.1 million due to lower average  borrowings,  partially offset
  by higher interest rates.
  
       OTHER  EXPENSE  (INCOME),  NET - Other  expense  (income)  for fiscal  2001
  totaled $3.3 million  compared with $1.6 million in the prior year. The increase
  was  principally  due to  lower  investment  income  on  assets  related  to the
  company's  nonqualified  deferred  compensation plan,  mark-to-market  losses on
  foreign  currency  forward  contracts for anticipated  purchases in the Euro and
  mark-to-market  losses on  interest  rate swaps that  became  unhedged  with the
  repayment of debt.
  
       INCOME  TAXES - The  effective  tax rate for fiscal  2001 was 33.0%  versus
  31.5% for the prior year.
  
       EBITDA - Due principally to the decline in earnings, EBITDA for fiscal 2001
  was $18.0 million compared with $44.5 million in the prior year.  EBITDA for the
  fourth  quarter of fiscal 2001 was $5.2 million  compared  with $12.2 million in
  the prior year.
  
  BALANCE SHEET COMMENTS
  
       WORKING CAPITAL - Accounts  receivable as of April 29, 2001 decreased 23.1%
  from the year-earlier level, due principally to the decline in sales. Days sales
  outstanding  totaled 52 days at April 29,  2001  compared  with 53 at the end of
  fiscal 2000. The aging of accounts receivable was 95.5% current and less than 30
  days past due versus 93.5% a year ago.  Inventories  at the close of fiscal 2001
  decreased 19.4% from a year ago. Inventory turns for the fourth quarter were 5.4
  versus 5.5 for the year-earlier period.  Operating working capital (comprised of
  accounts receivable,  inventory and accounts payable) was $90.5 million at April
  29, 2001, down from $112.4 million a year ago.
  
       PROPERTY,  PLANT AND EQUIPMENT - Capital  spending for fiscal 2001 declined
  to $8.1 million  compared  with $22.6  million in fiscal  2000.  The company had
  planned on lower  expenditures  and  reduced  the  investment  in new  equipment
  further  during the year due to the pronounced  slowdown in demand.  The company
  has  lowered the budget for capital  spending  for fiscal 2002 to  approximately
  $4.0 million.  Depreciation for fiscal 2001 totaled $19.4 million.  Depreciation
  for fiscal 2002 is currently estimated to be $17.5 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 47.8% at
  April 29, 2001 compared with 51.5% at the close of fiscal 2000.  Funded debt was
  $111.7  million at April 29, 2001 compared  with $137.5  million at the close of
  fiscal 2000. Funded debt equals long-term debt,  including  current  maturities.
  During  fiscal 2001,  the company  amended its credit  facility to include terms
  that restrict the payment of cash dividends and share  repurchases at this time,
  limit  capital  expenditures,  increase the interest  rate on the revolver  from
  LIBOR plus 1.60% to LIBOR plus 4.00% and  increase  the letter of credit fees on
  the IRBs from 1.10% to 4.00%.  The company was in compliance  with all covenants
  of the amended credit facility as of April 29, 2001. The amended credit facility
  lowered the amount of funds available under the facility from $88 million to $25
  million.  The company had  outstanding  borrowings of  approximately  $1 million
  under the facility at the end of fiscal 2001.
  
       RESTATEMENT  - During  the  third  quarter  of  fiscal  2001,  the  company
  terminated the nonqualified  deferred  compensation  plan covering  officers and
  certain  other  associates.  As a  result,  the  company  surrendered  the  life
  insurance  contracts  related  to the  nonqualified  plan  in  order  to pay the
  participants.  The proceeds from those life insurance  contracts  resulted in an
  amount greater than had previously been recorded by the company, attributable to
  gains that occurred in 1999 and 1998. In order to properly  reflect these gains,
  the company restated its financial statements and certain disclosures previously
  reported in its  financial  statements  as of April 30, 2000.  The effect of the
  correction  for these gains  increased  other  assets and  retained  earnings by
  $1,102,000 in the consolidated balance sheet as of April 30, 2000.
  
  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.  During fiscal 2000 and 1999,
  the company has  invested  $12.2  million to  repurchase  a total of 1.8 million
  shares.  No repurchases were made during fiscal 2001, and under the terms of the
  amended  credit  facility,  the company is currently  restricted  from any stock
  repurchases.
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "c8k-42901.txt", "description": "CULP, INC.    8-K    4-29-01", "secsgml_size_bytes": 60347}]
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": "1654638"}, "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) June 5, 2001
  
                                           CULP, INC.
  
                    (Exact name of registrant as specified in its charter)
  
        North Carolina                      0-12781               56-1001967
   (State or other jurisdiction of    (Commission File No.)      (IRS Employer
        incorporation)                                         Identification No.)
  
                                     101 South Main Street
                               High Point, North Carolina  27260
                           (Address of principal executive offices)
                                        (336) 889-5161
                    (Registrant's telephone number, including area code)
  
     _____________________________________________________________________________
                (Former name or former address, if changed since last report)
  
  --------------------------------------------------------------------------------
  Item 5. Other Events
  
  See  attached  Press  Release (3 pages) and  Financial  Information  Release (10
  pages),  both dated June 5, 2001,  related to the fiscal 2001 fourth quarter and
  year ended April 29, 2001.
  
  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:   June 5, 2001
  FOR IMMEDIATE RELEASE
  
          CULP REPORTS FISCAL 2001 RESULTS INCLUDING RESTRUCTURING CHARGE
                               ----------------------
                 FOURTH QUARTER INCLUDES PROFIT OF $0.13 PER SHARE
                      BEFORE RESTRUCTURING AND RELATED CHARGES
  
  HIGH POINT,  N. C. (June 5, 2001) -- As  anticipated,  Culp,  Inc.  (NYSE:  CFI)
  today  reported a loss for its fourth  quarter  and full 2001 fiscal year due to
  charges  from the  Company's  announced  actions  to reduce  costs and  increase
  efficiency  and  due  to the  industry-wide  slowdown  in  demand  in  the  home
  furnishings  industry.  The company  indicated that excluding  restructuring and
  related  charges,  it was profitable in the fourth fiscal quarter and expects to
  operate profitably for fiscal 2002 as a whole.
  
        For the three  months  ended April 29,  2001,  Culp  reported net sales of
  $101.1   million   compared   with   $129.4   million  a  year  ago.   Including
  restructuring  costs,  the  Company  reported a net loss for the quarter of $1.4
  million,  or $0.13 per share diluted,  compared with net income of $3.2 million,
  or $0.28 per share diluted, in the year-earlier period.
  
        Net  sales  for  fiscal  2001  totaled   $409.8   million   compared  with
  $488.1-million in the year-earlier  period.  Including  restructuring costs, the
  Company  reported  a net loss for  fiscal  2001 of $8.3  million,  or $0.74  per
  share  diluted,  compared  with net income of $9.4  million,  or $0.80 per share
  diluted, in fiscal 2000.
  
        Robert  G.  Culp,  III,  chief  executive  officer,   commented,  "We  had
  expected to report a net loss for the fourth  quarter  and full year  because of
  the  actions  we are  taking  to  reduce  costs and  ensure  Culp's  competitive
  position   during  this  period  of  reduced   demand.   Although   several  key
  demographic  trends  suggest  basic,   underlying  growth  in  demand  for  home
  furnishings,  our fiscal 2001 year proved to be a challenging  time for Culp and
  the  industry as a whole.  We believe  that the longer term  outlook is positive
  based on the growth projected for such  fundamental  indicators as new household
  formations,  but the current  slowdown  in business is clearly  going to persist
  into our fiscal 2002 year.  The impact of this  softness  in incoming  orders on
  our  income  statement  is  being  aggravated  by  the  continuing   decline  in
  international  sales that are being  affected by the high relative  value of the
  U.S. dollar against foreign currencies.
  
        Culp noted that the company  earned $1.4 million,  or $0.13 per share,  in
  the fourth fiscal quarter before  restructuring  and related charges.  He added,
  "Our goal is to restore  consistent  profitability  for Culp. We are  encouraged
  by the  performance in the fourth quarter when our efficiency was  significantly
  affected  by the  relocation  of key  manufacturing  equipment  and other  major
  operational  changes.  Looking at fiscal  2002,  we  believe  that sales for the
  first fiscal  quarter,  which is not  typically a seasonally  strong  period for
  our business,  will trail the  year-earlier  level of $101.9  million.  Although
  this will likely result in a loss for the period,  excluding  charges related to
  the  restructuring,  we  believe  that  this  will be less than the loss of $1.8
  million,   or  $0.16  per  share,  in  the  year-earlier   period.   Results  in
  subsequent  quarters  will be aided by more of the benefit of the  restructuring
  plan and other  actions we are  taking to reduce  costs.  For  fiscal  2002 as a
  whole,  we are  optimistic  about  reporting net earnings that will  represent a
  rewarding  turnaround  and  reinforce  our  potential  to restore the  company's
  historical level of profitability.
  
        "We  recognize  the cyclical  factors that  historically  have  influenced
  demand for  housing  and home  furnishings  and remain  confident  about  Culp's
  opportunity  to progress as one of the leading  suppliers of upholstery  fabrics
  and mattress ticking.  Current market  conditions have required us, however,  to
  downsize  and   consolidate   our   operations.   The  total  charges  from  the
  restructuring  and cost  reduction  initiatives  are now expected to approximate
  $8.5  million.  This  is up from  our  earlier  estimate  of  $6.0  million  due
  principally  to  additional  relocation  costs related to the  consolidation  of
  capacity  in our Culp  Decorative  Fabrics  unit.  We recorded  $7.4  million of
  these costs  during  fiscal 2001 and expect to complete  these steps  during the
  first  half  of  fiscal  2002.  Our  target  is  to  achieve   annualized   cost
  reductions of at least $12 million when this program is fully implemented."
  
        Culp   concluded,   "It  is  especially   noteworthy   that  we  generated
  sufficient  cash from  operations  for fiscal 2001 to reduce  debt and  payables
  related to capital  expenditures  by $31.2 million.  We were in compliance  with
  our  credit  agreement  at the end of the  fiscal  year and are  expecting  that
  internally  generated funds will allow us to continue  strengthening our balance
  sheet  during  fiscal  2002.  Our  capital   expenditures   during  fiscal  2001
  declined  from  $22.6  million  to  $8.1  million,  and  we  are  budgeting  new
  investments of only $4 million for fiscal 2002."
  
        Culp, Inc. is one of the world's largest  marketers of upholstery  fabrics
  for furniture  and is a leading  marketer of mattress  ticking for bedding.  The
  Company's  fabrics are used  principally in the  production of  residential  and
  commercial furniture and bedding products.
  
        This  release  contains statements  that  may be  deemed  "forward-looking
  statements"  within the meaning of the federal  securities  laws,  including the
  Private Securities Litigation Reform Act of 1995. Such statements are inherently
  subject to risks and  uncertainties.  Forward-looking  statements are statements
  that include projections, expectations or beliefs about future events or results
  or otherwise are not statements of historical  fact.  Such  statements are often
  characterized  by  qualifying  words such as  "expect,"  "believe,"  "estimate,"
  "plan" and "project"  and their  derivatives.  Factors that could  influence the
  matters  discussed in such  statements  include the level of housing  starts and
  sales of xisting homes,  consumer  confidence,  trends in disposable  income and
  general economic conditions. Decreases in these economic indicators could have a
  negative effect on the Company's business and prospects.  Likewise, increases in
  interest rates, particularly home mortgage rates, and increases in consumer debt
  or the general rate of inflation, could affect the Company adversely. Because of
  the  significant  percentage of the Company's  sales derived from  international
  shipments,  strengthening of the U.S. dollar against other currencies could make
  the Company's products less competitive on the basis of price in markets outside
  the  United  States.   Additionally,   economic  and  political  instability  in
  international areas could affect the demand for the Company's products.
  
                                     CULP, INC.
                           Condensed Financial Highlights
  
                                                      Three Months Ended
                                               -------------------------------
                                                  April 29,         April 30,
                                                    2001              2000
                                               --------------    -------------
  Net sales                                    $  101,071,000    $ 129,419,000
  Net income  (loss)                           $  (1,427,000)    $   3,191,000
  Net income (loss) per share:
    Basic                                      $       (0.13)    $        0.28
    Diluted                                    $       (0.13)    $        0.28
  Average shares outstanding:
    Basic                                          11,212,000       11,213,000
    Diluted                                        11,212,000       11,298,000
  
                                                        Fiscal Year Ended
                                               -------------------------------
                                                  April 29,          April 30,
                                                     2001              2000
                                               --------------    -------------
  Net sales                                    $  409,810,000    $ 488,079,000
  Net income (loss)                            $  (8,311,000)    $   9,380,000
  Net income (loss) per share:
    Basic                                      $       (0.74)    $        0.81
    Diluted                                    $       (0.74)    $        0.80
  Average shares outstanding:
    Basic                                          11,210,000       11,580,000
    Diluted                                        11,210,000       11,681,000
  
                                         -END-
  CULP, INC. FINANCIAL INFORMATION RELEASE
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 29, 2001 AND APRIL 30, 2000
  
                  (Amounts in Thousands, Except for Per Share Data)
  THREE MONTHS ENDED (UNAUDITED)
                                              -------------------------------------------------------------------
                                                      Amounts                                Percent of Sales
                                              -------------------------                    ----------------------
                                              April 29,     April 30,      % Over
                                                 2001         2000        (Under)            2001         2000
                                              -----------  ------------  -----------       -----------  ---------
  Net sales                                $     101,071       129,419      (21.9)%           100.0 %      100.0
  Cost of sales                                   85,978       107,342      (19.9)%            85.1 %       82.9
                                              -----------  ------------  -----------       -----------  ---------
         Gross profit                             15,093        22,077      (31.6)%            14.9 %       17.1
  
  Selling, general and
    administrative expenses                       10,617        14,913      (28.8)%            10.5 %       11.5
  Restructuring expense                            3,121             0      100.0 %             3.1 %        0.0
                                              -----------  ------------  -----------       -----------  ---------
         Income from operations                    1,355         7,164      (81.1)%             1.3 %        5.5
  
  Interest expense                                 2,284         2,255        1.3 %             2.3 %        1.7
  Interest income                                     (6)          (10)     (40.0)%            (0.0)%       (0.0)
  Other expense (income), net                      1,209           366      230.3 %             1.2 %        0.3
                                              -----------  ------------  -----------       -----------  ---------
         Income (loss) before income taxes        (2,132)        4,553     (146.8)%            (2.1)%        3.5
  
  Income taxes  *                                   (705)        1,362     (151.8)%            33.1 %       29.9
                                              -----------  ------------  -----------       -----------  ---------
         Net income (loss)                 $      (1,427)        3,191     (144.7)%            (1.4)%        2.5
                                              ===========  ============  ===========       ===========  =========
  
  Net income (loss) per share                     ($0.13)        $0.28     (146.4)%
  Net income (loss) per share, assuming dilution  ($0.13)        $0.28     (146.4)%
  Dividends per share                                 $0        $0.035     (100.0)%
  Average shares outstanding                      11,212        11,213       (0.0)%
  Average shares outstanding, assuming dilution   11,212        11,298       (0.8 %
  
                                                                     TWELVE MONTHS ENDED
                                              -------------------------------------------------------------------
                                                      Amounts                                Percent of Sales
                                              -------------------------                    ----------------------
                                              April 29,     April 30,      % Over
                                                 2001         2000        (Under)            2001         2000
                                              -----------  ------------  -----------       -----------  ---------
  Net sales                                $     409,810       488,079      (16.0)%           100.0 %      100.0
  Cost of sales                                  353,823       403,414      (12.3)%            86.3 %       82.7
                                              -----------  ------------  -----------       -----------  ---------
          Gross profit                            55,987        84,665      (33.9)%            13.7 %       17.3
  
  Selling, general and
    administrative expenses                       50,366        59,935      (16.0)%            12.3 %       12.3
  Restructuring expense                            5,625             0      100.0 %             1.4 %        0.0
                                              -----------  ------------  -----------       -----------  ---------
          Income (loss) from operations               (4)       24,730     (100.0)%            (0.0)%        5.1
  
  Interest expense                                 9,114         9,521       (4.3)%             2.2 %        2.0
  Interest income                                    (46)          (51)      (9.8)%            (0.0)%       (0.0)
  Other expense (income), net                      3,336         1,566      113.0 %             0.8 %        0.3
                                              -----------  ------------  -----------       -----------  ---------
          Income (loss) before income taxes      (12,408)       13,694     (190.6)%            (3.0)%        2.8
  
  Income taxes  *                                 (4,097)        4,314     (195.0)%            33.0 %       31.5
                                              -----------  ------------  -----------       -----------  ---------
          Net income (loss)                $      (8,311)        9,380     (188.6)%            (2.0)%        1.9
                                              ===========  ============  ===========       ===========  =========
  
  Net income (loss) per share                     ($0.74)        $0.81     (191.4)%
  Net income (loss) per share, assuming dilution  ($0.74)        $0.80     (192.5)%
  Dividends per share                             $0.105         $0.14      (25.0)%
  Average shares outstanding                      11,210        11,580       (3.2)%
  Average shares outstanding, assuming dilution   11,210        11,681       (4.0)%
  
  * Percent of sales column is  calculated  as a % of income  (loss) before income taxes.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                             CONSOLIDATED BALANCE SHEETS
                          APRIL 29, 2001 AND APRIL 30, 2000
  
                               (Amounts in Thousands)
  Amounts                     Increase
                                                    ------------------------------          (Decrease)
                                                      April 29,      (1) April 30, ----------------------------
                                                        2001              2000        Dollars          Percent
                                                   --------------   -------------  ------------     -----------
  Current assets
         Cash and cash investments               $         1,207           1,007           200          19.9 %
         Accounts receivable                              57,849          75,223      (17,374)        (23.1) %
         Inventories                                      59,997          74,471      (14,474)        (19.4) %
         Other current assets                              7,856          10,349       (2,493)        (24.1) %
                                                   --------------   -------------  ------------     -----------
                     Total current assets                126,909         161,050      (34,141)        (21.2) %
  
  Property, plant & equipment, net                       112,322         126,407      (14,085)        (11.1) %
  Goodwill                                                48,478          49,873       (1,395)         (2.8) %
  Other assets                                             1,871           6,650       (4,779)        (71.9) %
                                                   --------------   -------------  ------------     -----------
  
                     Total assets                $       289,580         343,980      (54,400)        (15.8) %
                                                   ==============   =============  ============     ===========
  
  Current liabilities
         Current maturities of long-term debt    $         2,488           1,678           810          48.3 %
         Accounts payable                                 27,371          37,287       (9,916)        (26.6) %
         Accrued expenses                                 17,153          22,108       (4,955)        (22.4) %
         Income taxes payable                              1,268               0         1,268         100.0 %
                                                   --------------   -------------  ------------     -----------
                     Total current liabilities            48,280          61,073      (12,793)        (20.9) %
  
  Long-term debt                                         109,168         135,808      (26,640)        (19.6) %
  
  Deferred income taxes                                   10,330          17,459       (7,129)        (40.8) %
                                                   --------------   -------------  ------------     -----------
                     Total liabilities                   167,778         214,340      (46,562)        (21.7) %
  
  Shareholders' equity                                   121,802         129,640       (7,838)         (6.0) %
                                                   --------------   -------------  ------------     -----------
  
                     Total liabilities and
                     shareholders' equity        $       289,580         343,980      (54,400)        (15.8) %
                                                   ==============   =============  ============     ===========
  
  Shares outstanding                                      11,221          11,209            12           0.1 %
                                                   ==============   =============  ============     ===========
  (1) As restated (see Restatement paragraph within Financial Narrative)
  CULP, INC. FINANCIAL
                                 INFORMATION RELEASE
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
            FOR THE TWELVE MONTHS ENDED APRIL 29, 2001 AND APRIL 30, 2000
  
                               (Amounts in Thousands)
  TWELVE MONTHS ENDED
                                                                      ------------------------------
                                                                                  Amounts
                                                                      ------------------------------
                                                                         April 29,       April 30,
                                                                           2001            2000
                                                                      --------------  --------------
  Cash flows from operating activities:
       Net income (loss)                                               $     (8,311)           9,380
       Adjustments to reconcile net income (loss) to net
          cash provided by operating activities:
              Depreciation                                                   19,391           19,462
              Amortization of intangible assets                               1,591            1,596
              Amortization of deferred compensation                             360              250
              Provision for deferred income taxes                            (5,394)           2,176
              Restructuring expense                                           5,625                0
              Changes in assets and liabilities:
                 Accounts receivable                                         17,374           (4,720)
                 Inventories                                                 14,474           (7,401)
                 Other current assets                                           827              (16)
                 Other assets                                                   171             (770)
                 Accounts payable                                            (4,530)           1,029
                 Accrued expenses                                            (6,767)             890
                 Income taxes payable                                         1,268                0
                                                                       --------------  --------------
                     Net cash provided by operating activities               36,079           21,876
                                                                       --------------  --------------
  Cash flows from investing activities:
       Capital expenditures                                                  (8,050)         (22,559)
       Purchases of restricted investments                                        0              (40)
       Sale of investments related to deferred compensation plan              4,547                0
       Sale of restricted investments                                             0            3,380
                                                                       --------------  --------------
                     Net cash used in investing activities                   (3,503)         (19,219)
                                                                       --------------  --------------
  Cash flows from financing activities:
       Proceeds from issuance of long-term debt                                 564            9,543
       Principal payments on long-term debt                                 (26,394)         (14,047)
       Change in accounts payable-capital expenditures                       (5,386)          10,571
       Dividends paid                                                        (1,177)          (1,611)
       Payments to acquire common stock                                           0           (6,636)
       Proceeds from common stock issued                                         17               21
                                                                       --------------  --------------
                     Net cash used in financing activities                  (32,376)          (2,159)
                                                                       --------------  --------------
  
  Increase in cash and cash investments                                         200              498
  
  Cash and cash investments at beginning of period                            1,007              509
                                                                       --------------  --------------
  
  Cash and cash investments at end of period                           $      1,207            1,007
                                                                       ==============  ==============
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL ANALYSIS
                                   APRIL 29, 2001
  FISCAL 00                          FISCAL 01
                                                      ----------------  --------------------------------------------------  ----------
                                                           Q4 (6)             Q1 (6)       Q2 (6)        Q3          Q4       LTM (4)
                                                      ----------------  --------------------------------------------------  ----------
  INVENTORIES
             Inventory turns                                   5.5              4.7          5.1         4.9         5.4
  
  RECEIVABLES
             Days sales in receivables                          53               49           52          48          52
             Percent current & less than 30
               days past due                                 93.5%            91.5%        94.7%       94.4%       95.5%
  
  WORKING CAPITAL
             Current ratio                                     2.6              3.2          2.7         3.0         2.6
             Working capital turnover (3)                      4.4              4.3          4.2         4.1         4.0
             Operating working capital (3)                $112,407         $108,509     $106,607     $94,546     $90,475
  
  PROPERTY, PLANT & EQUIPMENT
             Depreciation rate                                7.9%             8.0%         7.9%        7.5%        7.4%
             Percent property, plant &
               equipment are depreciated                     49.6%            51.1%        52.6%       53.8%       54.9%
             Capital expenditures                          $22,559 (1)       $2,289       $1,370      $2,873      $1,518
  
  PROFITABILITY
             Return on average total capital                  7.2%           (0.3%)         2.7%      (6.4%)        0.2%       (0.9%)
             Return on average equity                        10.0%           (5.5%)         1.1%     (17.6%)      (4.7%)       (6.6%)
             Net income (loss) per share                     $0.28          ($0.16)        $0.03     ($0.49)     ($0.13)      ($0.74)
             Net income (loss) per share (diluted)           $0.28          ($0.16)        $0.03     ($0.49)     ($0.13)      ($0.74)
  
  LEVERAGE
             Total liabilities/equity                       165.3%           156.1%       154.6%      149.1%      137.7%
             Funded debt/equity                             106.1%           107.3%        99.5%       99.8%       91.7%
             Funded debt/capital employed                    51.5%            51.8%        49.9%       50.0%       47.8%
             Funded debt                                  $137,486         $136,828     $126,757    $121,372    $111,656
             Funded debt/EBITDA (LTM) (5)                     3.08             3.44         3.57        4.28        4.23
             EBITDA/Interest expense, net (LTM)                4.7              4.2          3.9         2.8         2.0
  
  OTHER
             Book value per share                           $11.57           $11.37       $11.37      $10.85      $10.85
             Employees at quarter end                        3,825            3,722        3,623       3,486       3,127
             Sales per employee (annualized)              $133,000         $108,000     $121,000    $108,000    $122,000
             Capital employed                             $267,126         $264,320     $254,198    $242,958    $233,458
             Effective income tax rate                       29.9%            34.0%        37.9%       33.0%       33.1%
             EBITDA (2)                                    $12,248           $5,177       $8,265      ($648)      $5,208      $18,002
             EBITDA/net sales                                 9.5%             5.1%         7.4%      (0.7%)        5.2%         4.4%
  
    (1) Expenditures for entire year
    (2) Earnings before interest, income taxes, and depreciation & amortization.
    (3) Working capital for this calculation is accounts receivable, inventories and accounts payable.
    (4) LTM represents "Latest Twelve Months"
    (5) EBITDA includes capitalized interest and certain cash and non-cash charges, as defined by the company's credit agreement.
    (6) As restated (see Restatement paragraph within Financial Narrative)
  CULP, INC. FINANCIAL INFORMATION RELEASE
                              SALES BY SEGMENT/DIVISION
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 29, 2001 AND APRIL 30, 2000
  
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                         ------------------------------------------------------------------------
                                                 Amounts                               Percent of Total Sales
                                         ------------------------                    ----------------------------
                                         April 29,    April 30,         % Over
  Segment/Division                          2001         2000           (Under)       2001           2000
  -----------------------------------    -----------  -----------    --------------  ------------   -------------
  Upholstery Fabrics
      Culp Decorative Fabrics        $       41,046       56,130       (26.9) %         40.6 %         43.4 %
      Culp Velvets/Prints                    31,327       39,501       (20.7) %         31.0 %         30.5 %
      Culp Yarn                               2,417        4,809       (49.7) %          2.4 %          3.7 %
                                         -----------  -----------    --------------  ------------   -------------
                                             74,790      100,440       (25.5) %         74.0 %         77.6 %
  
  Mattress Ticking
      Culp Home Fashions                     26,281       28,979        (9.3) %         26.0 %         22.4 %
                                         -----------  -----------    --------------  ------------   -------------
  
                                   * $      101,071      129,419       (21.9) %        100.0 %        100.0 %
                                         ===========  ===========    ==============  ============   =============
  
                                                                   TWELVE MONTHS ENDED
                                         ------------------------------------------------------------------------
                                                 Amounts                               Percent of Total Sales
                                         ------------------------                    ----------------------------
                                         April 29,    April 30,         % Over
  Segment/Division                          2001         2000           (Under)       2001           2000
  -----------------------------------    -----------  -----------    --------------  ------------   -------------
  Upholstery Fabrics
      Culp Decorative Fabrics        $      170,326      213,197       (20.1) %         41.6 %         43.7 %
      Culp Velvets/Prints                   122,105      151,543       (19.4) %         29.8 %         31.0 %
      Culp Yarn                              12,581       17,570       (28.4) %          3.1 %          3.6 %
                                         -----------  -----------    --------------  ------------   -------------
                                            305,012      382,310       (20.2) %         74.4 %         78.3 %
  
  Mattress Ticking
      Culp Home Fashions                    104,798      105,769        (0.9) %         25.6 %         21.7 %
                                         -----------  -----------    --------------  ------------   -------------
  
                                   * $      409,810      488,079       (16.0) %        100.0 %        100.0 %
                                         ===========  ===========    ==============  ============   =============
  * U.S. sales were $85,314 and $101,276 for the fourth quarter of fiscal 2001 and
  fiscal 2000,  respectively;  and $331,986 and $376,975 for the twelve  months of
  fiscal 2001 and fiscal 2000, respectively. The percentage decrease in U.S. sales
  was 15.8% for the fourth quarter and a decrease of 11.9% for the twelve months.
  CULP, INC. FINANCIAL INFORMATION RELEASE
                       INTERNATIONAL SALES BY GEOGRAPHIC AREA
   FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 29, 2001 AND APRIL 30, 2000
  
                               (Amounts in thousands)
  THREE MONTHS ENDED (UNAUDITED)
                                         ---------------------------------------------------------------------------------
                                                    Amounts                                    Percent of Total Sales
                                         -------------------------------                    ------------------------------
                                            April 29,        April 30,       % Over
           Geographic Area                    2001             2000          (Under)            2001            2000
  ----------------------------------     ---------------   -------------  --------------    -------------    -------------
  North America (Excluding USA)     $             7,872           9,968     (21.0) %            50.0 %          35.4 %
  Europe                                          1,334           2,655     (49.8) %             8.5 %           9.4 %
  Middle East                                     3,375           8,837     (61.8) %            21.4 %          31.4 %
  Far East & Asia                                 2,394           5,014     (52.3) %            15.2 %          17.8 %
  South America                                     296             570     (48.1) %             1.9 %           2.0 %
  All other areas                                   486           1,099     (55.8) %             3.1 %           3.9 %
                                         ---------------   -------------  --------------    -------------    -------------
  
                                    $            15,757          28,143     (44.0) %           100.0 %         100.0 %
                                         ===============   =============  ==============    =============    =============
  
                                                                       TWELVE MONTHS ENDED
                                         ---------------------------------------------------------------------------------
                                                    Amounts                                    Percent of Total Sales
                                         -------------------------------                    ------------------------------
                                            April 29,        April 30,       % Over
           Geographic Area                    2001             2000          (Under)            2001            2000
  ----------------------------------     ---------------   -------------  --------------    -------------    -------------
  North America (Excluding USA)     $            34,049          36,032      (5.5) %            43.8 %          32.4 %
  Europe                                          6,262          16,351     (61.7) %             8.0 %          14.7 %
  Middle East                                    17,831          32,929     (45.9) %            22.9 %          29.6 %
  Far East & Asia                                15,497          19,102     (18.9) %            19.9 %          17.2 %
  South America                                   1,028           2,343     (56.1) %             1.3 %           2.1 %
  All other areas                                 3,157           4,347     (27.4) %             4.1 %           3.9 %
                                         ---------------   -------------  --------------    -------------    -------------
  
                                    $            77,824         111,104     (30.0) %           100.0 %         100.0 %
                                         ===============   =============  ==============    =============    =============
  International  sales,  and the  percentage of total sales,  for each of the last
  five fiscal years follows:  fiscal  1997-$101,571  (25%);  fiscal  1998-$137,223
  (29%);  fiscal  1999-$113,354  (23%);  fiscal  2000-$111,104  (23%);  and fiscal
  2001-$77,824 (19%). International sales for the fourth quarter represented 15.6%
  and 21.7% for 2001 and 2000, respectively.
  Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1999 vs 2000 vs 2001
  
                               (Amounts in thousands)
  Fiscal 1999                                        Fiscal 2000
                                -----------------------------------------------------  -----------------------------------------------
            Segment/Division          Q1        Q2          Q3        Q4        TOTAL      Q1        Q2       Q3        Q4       TOTAL
  -----------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics       51,445    59,573     50,520     60,520    222,058    50,516   56,897    49,654    56,130   213,197
      Culp Velvets/Prints           29,994    38,728     34,949     40,402    144,073    36,209   41,783    34,050    39,501   151,543
      Culp Yarn                      6,596     6,367      4,088      4,462     21,513     4,129    4,358     4,274     4,809    17,570
                                -----------------------------------------------------  -----------------------------------------------
                                    88,035   104,668     89,557    105,384    387,644    90,854  103,038    87,978   100,440   382,310
  
  Mattress Ticking
      Culp Home Fashions            22,632    23,491     22,536     26,781     95,440    25,083   26,504    25,203    28,979   105,769
                                -----------------------------------------------------  -----------------------------------------------
                                   110,667   128,159    112,093    132,165    483,084   115,937  129,542   113,181   129,419   488,079
                                =====================================================  ===============================================
  
                     Percent increase(decrease) from prior year:
  
            Segment/Division
  -----------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics        29.2       4.9      (5.4)       0.6        5.7     (1.8)    (4.5)      (1.7)     (7.3)     (4.0)
      Culp Velvets/Prints           (21.9)    (11.8)    (20.6)     (10.3)     (15.9)    20.7      7.9       (2.6)     (2.2)      5.2
      Culp Yarn                     100.0     100.0     437.2      (37.3)     173.1    (37.4)   (31.6)       4.5       7.8     (18.3)
                                -----------------------------------------------------  -----------------------------------------------
                                     12.6       3.9      (8.8)      (6.2)      (0.5)     3.2     (1.6)      (1.8)     (4.7)     (1.4)
  
  Mattress Ticking
      Culp Home Fashions              6.3       5.7      11.2       13.9        9.3     10.8     12.8       11.8       8.2      10.8
                                -----------------------------------------------------  -----------------------------------------------
                                     11.2       4.3      (5.4)      (2.7)       1.3      4.8      1.1        1.0      (2.1)      1.0
                                =====================================================  ===============================================
  
          Overall Growth Rate
  
  Internal (without acquisitions)    (4.6)     (0.9)     (8.5)      (2.7)      (4.1)     4.8      1.1        1.0      (2.1)      1.0
  External                           15.8       5.2       3.1          -        5.4        -        -          -         -         -
                                -----------------------------------------------------  -----------------------------------------------
                                     11.2       4.3      (5.4)      (2.7)       1.3      4.8      1.1        1.0      (2.1)      1.0
                                =====================================================  ===============================================
  Culp, Inc.
                     SALES BY SEGMENT/DIVISION - TREND ANALYSIS
                                1999 vs 2000 vs 2001
  
                               (Amounts in thousands)
  Fiscal 2001
                                       ----------------------------------------------------------------
            Segment/Division                     Q1          Q2          Q3            Q4        TOTAL
  ----------------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics                 41,533       46,792      40,955        41,046    170,326
      Culp Velvets/Prints                     30,074       32,073      28,631        31,327    122,105
      Culp Yarn                                3,319        4,134       2,711         2,417     12,581
                                        ----------------------------------------------------------------
                                              74,926       82,999      72,297        74,790    305,012
  
  Mattress Ticking
      Culp Home Fashions                      26,952       27,982      23,583        26,281    104,798
                                       ----------------------------------------------------------------
                                             101,878      110,981      95,880       101,071    409,810
                                       ================================================================
  
                      Percent increase(decrease) from prior year:
  
            Segment/Division
  ----------------------------------
  Upholstery Fabrics
      Culp Decorative Fabrics                 (17.8)       (17.8)      (17.5)        (26.9)     (20.1)
      Culp Velvets/Prints                     (16.9)       (23.2)      (15.9)        (20.7)     (19.4)
      Culp Yarn                               (19.6)        (5.1)      (36.6)        (49.7)     (28.4)
                                        ----------------------------------------------------------------
                                              (17.5)       (19.4)      (17.8)        (25.5)     (20.2)
  
  Mattress Ticking
      Culp Home Fashions                        7.5          5.6        (6.4)         (9.3)      (0.9)
                                       ----------------------------------------------------------------
                                              (12.1)       (14.3)      (15.3)        (21.9)     (16.0)
                                       ================================================================
  
          Overall Growth Rate
  
  Internal (without acquisitions)             (12.1)       (14.3)      (15.3)        (21.9)     (16.0)
  External                                        -            -           -             -          -
                                       ================================================================
                                              (12.1)       (14.3)      (15.3)        (21.9)     (16.0)
                                       ================================================================
  CULP, INC. FINANCIAL INFORMATION RELEASE
                                 FINANCIAL NARRATIVE
   for the three and twelve month periods ended April 29, 2001 and April 30, 2000
  
  INCOME STATEMENT COMMENTS
  
       GENERAL  - For the  fourth  quarter,  net sales  decreased  21.9% to $101.1
  million; and the company reported a net loss of $1.4 million, or $0.13 per share
  diluted (based on 11,212,000  average shares  outstanding)  versus net income of
  $3.2 million,  or $0.28 per share diluted  (based on 11,298,000  average  shares
  outstanding)  in the fourth  quarter of fiscal 2000.  For fiscal 2001, net sales
  decreased 16.0% to $409.8 million,  and the company  reported a net loss of $8.3
  million,  or $0.74  per  share  diluted  (based  on  11,210,000  average  shares
  outstanding),  versus net  income of $9.4  million,  or $0.80 per share  diluted
  (based on 11,681,000  average shares  outstanding),  a year ago. The results for
  the fourth  quarter and fiscal 2001 included  charges before taxes totaling $4.2
  million and $7.4 million,  respectively, for restructuring actions and inventory
  write-downs.  Without the restructuring and related charges, earnings would have
  been $1.4 million,  or $0.13 per share diluted for the fourth  quarter,  and the
  loss would have been $3.3 million, or $0.30 per share diluted for fiscal 2001 as
  a whole.
  
       The company's  long-term,  strategic plan encompasses  several  competitive
  initiatives:
  
       Broad Product  Offering - continuing to market one of the broadest  product
       lines in upholstery fabrics and mattress ticking,  consistent with customer
       demand.  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.  Ownership of  resources in the home  furnishings
       industry  is  becoming  increasingly  concentrated,  and  the  company  has
       successfully  been able to  capitalize  on its size and product  breadth to
       supply more of the needs of existing customers.  One customer accounted for
       approximately  11% of net  sales  during  fiscal  2001.  Culp  is  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  computer-assisted  design  systems and
       promotes  sharing  of  innovative   designs  across  product  lines.   Culp
       encourages active customer involvement in the entire design process; and
  
       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.
  
       RESTRUCTURING  ACTIONS  - During  fiscal  2001,  the  company  initiated  a
  restructuring plan intended to lower costs, increase efficiency and position the
  company to operate profitably within the current  environment of reduced demand.
  The plan  involves the  consolidation  of certain  manufacturing  capacity,  the
  closure of some  facilities and an extensive  reduction in selling,  general and
  administrative   expenses.   The  company  also  recognized   certain  inventory
  write-downs as part of this initiative. The total charge from the restructuring,
  cost  reduction and inventory  write-down  initiatives is expected to total $8.5
  million,  about $3.5 million of which  represents  non-cash  items.  The company
  recognized $7.4 million of restructuring  and related charges during fiscal 2001
  and expects to record the remaining charges related to restructuring  during the
  first half of fiscal  2002.  The  company  expects to  realize  annualized  cost
  reductions of at least $12 million when these steps are fully implemented.
  
       NET SALES - Compared with fiscal 2000,  upholstery  fabric sales for fiscal
  2001 decreased  20.2% to $305.0  million,  and mattress  ticking sales decreased
  0.9% to $104.8  million  (See Sales by  Segment/Division  schedule on Page 5 and
  Sales by Segment/Division - Trend Analysis on Page 7).  International sales were
  down 30.0% for fiscal 2001.
  
       The company  had  previously  announced  that it did not expect to report a
  profit for the full year,  excluding  restructuring  and  related  charges.  Key
  factors  influencing  the  year-to-year  comparison  were the sharp,  persistent
  weakness in consumer spending on home furnishings, especially in the promotional
  price  category,  and the strength in the U.S. dollar that had an adverse impact
  on exports.  The slowdown in industry-wide demand also led to a decline in sales
  at Culp Home  Fashions  (primarily  mattress  ticking)  for the third and fourth
  quarters, resulting in a slight decline in sales for the full year.
  
       GROSS PROFIT - Gross profit declined 33.9% for fiscal 2001 and decreased as
  a percentage of net sales from 17.3% to 13.7%.  The decline was due  principally
  to lower sales volume that led to  unfavorable  cost  variances in the company's
  upholstery fabrics  operation.  The company is taking steps to lower expenses by
  consolidating certain operations and reducing personnel,  but does not expect to
  realize the full benefit of these actions until the second half of fiscal 2002.
  
       SG&A EXPENSES - SG&A expenses for fiscal 2001 declined 16.0% from the prior
  year. Reflecting the momentum of the company's actions to reduce expenses,  SG&A
  expenses for the fourth quarter declined 28.8% from the year-earlier period and,
  as a percentage of sales, declined from 11.5% to 10.5%.
  
       INTEREST   EXPENSE  -  Interest  expense  for  fiscal  2001  declined  from
  $9.5-million to $9.1 million due to lower average  borrowings,  partially offset
  by higher interest rates.
  
       OTHER  EXPENSE  (INCOME),  NET - Other  expense  (income)  for fiscal  2001
  totaled $3.3 million  compared with $1.6 million in the prior year. The increase
  was  principally  due to  lower  investment  income  on  assets  related  to the
  company's  nonqualified  deferred  compensation plan,  mark-to-market  losses on
  foreign  currency  forward  contracts for anticipated  purchases in the Euro and
  mark-to-market  losses on  interest  rate swaps that  became  unhedged  with the
  repayment of debt.
  
       INCOME  TAXES - The  effective  tax rate for fiscal  2001 was 33.0%  versus
  31.5% for the prior year.
  
       EBITDA - Due principally to the decline in earnings, EBITDA for fiscal 2001
  was $18.0 million compared with $44.5 million in the prior year.  EBITDA for the
  fourth  quarter of fiscal 2001 was $5.2 million  compared  with $12.2 million in
  the prior year.
  
  BALANCE SHEET COMMENTS
  
       WORKING CAPITAL - Accounts  receivable as of April 29, 2001 decreased 23.1%
  from the year-earlier level, due principally to the decline in sales. Days sales
  outstanding  totaled 52 days at April 29,  2001  compared  with 53 at the end of
  fiscal 2000. The aging of accounts receivable was 95.5% current and less than 30
  days past due versus 93.5% a year ago.  Inventories  at the close of fiscal 2001
  decreased 19.4% from a year ago. Inventory turns for the fourth quarter were 5.4
  versus 5.5 for the year-earlier period.  Operating working capital (comprised of
  accounts receivable,  inventory and accounts payable) was $90.5 million at April
  29, 2001, down from $112.4 million a year ago.
  
       PROPERTY,  PLANT AND EQUIPMENT - Capital  spending for fiscal 2001 declined
  to $8.1 million  compared  with $22.6  million in fiscal  2000.  The company had
  planned on lower  expenditures  and  reduced  the  investment  in new  equipment
  further  during the year due to the pronounced  slowdown in demand.  The company
  has  lowered the budget for capital  spending  for fiscal 2002 to  approximately
  $4.0 million.  Depreciation for fiscal 2001 totaled $19.4 million.  Depreciation
  for fiscal 2002 is currently estimated to be $17.5 million.
  
       LONG-TERM DEBT - The company's  funded  debt-to-capital  ratio was 47.8% at
  April 29, 2001 compared with 51.5% at the close of fiscal 2000.  Funded debt was
  $111.7  million at April 29, 2001 compared  with $137.5  million at the close of
  fiscal 2000. Funded debt equals long-term debt,  including  current  maturities.
  During  fiscal 2001,  the company  amended its credit  facility to include terms
  that restrict the payment of cash dividends and share  repurchases at this time,
  limit  capital  expenditures,  increase the interest  rate on the revolver  from
  LIBOR plus 1.60% to LIBOR plus 4.00% and  increase  the letter of credit fees on
  the IRBs from 1.10% to 4.00%.  The company was in compliance  with all covenants
  of the amended credit facility as of April 29, 2001. The amended credit facility
  lowered the amount of funds available under the facility from $88 million to $25
  million.  The company had  outstanding  borrowings of  approximately  $1 million
  under the facility at the end of fiscal 2001.
  
       RESTATEMENT  - During  the  third  quarter  of  fiscal  2001,  the  company
  terminated the nonqualified  deferred  compensation  plan covering  officers and
  certain  other  associates.  As a  result,  the  company  surrendered  the  life
  insurance  contracts  related  to the  nonqualified  plan  in  order  to pay the
  participants.  The proceeds from those life insurance  contracts  resulted in an
  amount greater than had previously been recorded by the company, attributable to
  gains that occurred in 1999 and 1998. In order to properly  reflect these gains,
  the company restated its financial statements and certain disclosures previously
  reported in its  financial  statements  as of April 30, 2000.  The effect of the
  correction  for these gains  increased  other  assets and  retained  earnings by
  $1,102,000 in the consolidated balance sheet as of April 30, 2000.
  
  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.  During fiscal 2000 and 1999,
  the company has  invested  $12.2  million to  repurchase  a total of 1.8 million
  shares.  No repurchases were made during fiscal 2001, and under the terms of the
  amended  credit  facility,  the company is currently  restricted  from any stock
  repurchases.