XML 46 R28.htm IDEA: XBRL DOCUMENT
v3.25.2

Segment Information | 12 Months Ended
--- | ---
Apr. 27, 2025
Segment Reporting [Abstract] |
Segment Information | 19. SEGMENT INFORMATION Overall Our operations are classified into two reportable segments: mattress fabrics and upholstery fabrics. The mattress fabrics segment manufactures, sources, and sells fabrics and mattress covers primarily to bedding manufacturers. The upholstery fabrics segment develops, manufactures, sources, and sells fabrics primarily to residential, commercial, and hospitality furniture manufacturers. In addition, the upholstery fabrics segment includes Read, a wholly-owned subsidiary with operations located in Knoxville, Tennessee and our facility located in Burlington, North Carolina, which provide window treatments and sourcing of upholstery fabrics and other products, as well as related measuring and installation to customers in the hospitality and commercial markets. Read also supplies soft goods such as decorative top sheets, coverlets, duvet covers, bed skirts, bolsters, and pillows. Our Chief Operating Decision Maker ("CODM") is our Chief Executive Officer ("CEO"), who regularly reviews the financial results of the company on a consolidated and business segment basis for the purpose of evaluating financial and operating performance, allocation of resources to the individual segments noted above, and determining executive compensation. Accordingly, our CODM reviews certain financial metrics that include net sales and (loss) income from operations before unallocated corporate expenses and other items that are not expected to occur on a regular basis (i.e., restructuring activities), as well as: (i) cost of sales, (ii) gross profit, (iii) selling, general, and administrative expenses, including unallocated corporate expenses, (iv) assets used in operations, which generally include accounts receivable, inventory, property, plant, and equipment, right of use assets, and assets held for sale; and (v) capital spending. Cost of sales for each segment includes costs to develop, manufacture, or source our products, including costs such as raw material and finished goods purchases, direct and indirect labor, overhead, and incoming freight charges. Unallocated corporate expenses primarily represent compensation and benefits for certain executives and their support staff, all costs associated with being a public company, amortization of intangible assets, and other miscellaneous expenses. Intangible assets are not included in segment assets, as these assets are not used by the Chief Operating Decision Maker to evaluate the respective segment’s operating performance, allocate resources to individual segments, or determine executive compensation. Net Sales Geographic Concentration Net sales denominated in U.S. dollars accounted for 92%, 92%, and 91% of total consolidated net sales in fiscal 2025, 2024, and 2023, respectively. International sales accounted for 33%, 32%, and 29% of net sales during fiscal 2025, 2024, and 2023, respectively, and are summarized by geographic area as follows:
(dollars in thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |
north america (excluding USA) (1) |  | $ | 32,912 |  |  | $ | 29,357 |  |  | $ | 29,756 |
far east and asia (2) |  |  | 30,586 |  |  |  | 36,334 |  |  |  | 31,339 |
all other areas |  |  | 6,026 |  |  |  | 6,011 |  |  |  | 8,032 |
|  | $ | 69,524 |  |  | $ | 71,702 |  |  | $ | 69,127 |
(1) Of this amount, $28.8 million, $25.1 million, and $24.9 million are attributable to shipments to Mexico in fiscal 2025, 2024, and 2023, respectively. (2) Of this amount $16.0 million, $18.3 million, and $20.0 million are attributable to shipments within China in fiscal 2025, 2024, and 2023, respectively. Sales attributed to individual countries are based upon the location to which the company ships its products for delivery to customers. Customer Concentration One customer within the upholstery fabrics segment represented 11%, 12%, and 15% of consolidated net sales during fiscal 2025, 2024, and 2023, respectively. No customers within the upholstery fabrics segment accounted for greater than 10% of consolidated accounts receivable, net as of April 27, 2025, and April 28, 2024. One customer within the mattress fabrics segment represented 11% of consolidated net sales during fiscal 2025. No customers within the mattress fabrics segment represented greater than 10% of consolidated net sales during fiscal 2024 or 2023. No customers within the mattress fabrics segment accounted for greater than 10% of consolidated accounts receivable, net as of April 27, 2025, and April 28, 2024. Employee Workforce Concentration Hourly employees associated with the mattress fabrics operation located in Quebec, Canada were represented by a local unaffiliated union with a collective bargaining agreement that was set to expire on February 1, 2026. On April 29, 2024 (first quarter of fiscal 2025), our board of directors made a decision to gradually discontinue this operation with the intention to ultimately sell the related building and land. As a result, as of April 27, 2025, there were only six hourly employees remaining to ready the building and land for sale, which such sale to a third party occurred during the first quarter of fiscal 2026. As a result of this sale, the remaining hourly employees were terminated. All hourly employees were provided compensation and benefits in accordance with the collective bargaining agreement noted above. Financial Information Statements of operations for our business segments are as follows:
(dollars in thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |
net sales by segment: |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 113,906 |  |  | $ | 116,370 |  |  | $ | 110,995 |
upholstery fabrics |  |  | 99,331 |  |  |  | 108,963 |  |  |  | 123,939 |
net sales |  | $ | 213,237 |  |  | $ | 225,333 |  |  | $ | 234,934 |
cost of sales by segment: |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 105,970 |  |  | $ | 110,081 |  |  | $ | 117,734 |
upholstery fabrics |  |  | 80,579 |  |  |  | 87,273 |  |  |  | 106,206 |
total segment cost of sales |  |  | 186,549 |  |  |  | 197,354 |  |  |  | 223,940 |
restructuring related charge (1) (3) (5) |  |  | 1,621 |  |  |  | 40 |  |  |  | 98 |
cost of sales |  | $ | 188,170 |  |  | $ | 197,394 |  |  | $ | 224,038 |
gross profit: |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 7,936 |  |  | $ | 6,289 |  |  | $ | (6,739 | )
upholstery fabrics |  |  | 18,752 |  |  |  | 21,690 |  |  |  | 17,733 |
total segment gross profit |  |  | 26,688 |  |  |  | 27,979 |  |  |  | 10,994 |
restructuring related charge (1) (3) (5) |  |  | (1,621 | ) |  |  | (40 | ) |  |  | (98 | )
gross profit |  | $ | 25,067 |  |  | $ | 27,939 |  |  | $ | 10,896 |
selling, general, and administrative expenses by segment: |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 13,171 |  |  | $ | 13,134 |  |  | $ | 11,942 |
upholstery fabrics |  |  | 14,695 |  |  |  | 15,903 |  |  |  | 15,739 |
unallocated corporate |  |  | 7,839 |  |  |  | 9,574 |  |  |  | 10,297 |
selling, general, and administrative expenses |  | $ | 35,705 |  |  | $ | 38,611 |  |  | $ | 37,978 |
(loss) income from operations by segment: |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | (5,235 | ) |  | $ | (6,845 | ) |  | $ | (18,681 | )
upholstery fabrics |  |  | 4,057 |  |  |  | 5,787 |  |  |  | 1,994 |
unallocated corporate expenses |  |  | (7,839 | ) |  |  | (9,574 | ) |  |  | (10,297 | )
total segment loss from operations |  |  | (9,017 | ) |  |  | (10,632 | ) |  |  | (26,984 | )
restructuring related charge (1) (3) (5) |  |  | (1,621 | ) |  |  | (40 | ) |  |  | (98 | )
restructuring expense (2) (4) (6) |  |  | (7,739 | ) |  |  | (636 | ) |  |  | (1,396 | )
loss from operations |  | $ | (18,377 | ) |  | $ | (11,308 | ) |  | $ | (28,478 | )
interest expense |  |  | (231 | ) |  |  | (11 | ) |  |  | — |
interest income |  |  | 915 |  |  |  | 1,174 |  |  |  | 531 |
other expense |  |  | (1,018 | ) |  |  | (625 | ) |  |  | (443 | )
loss before income taxes |  | $ | (18,711 | ) |  | $ | (10,770 | ) |  | $ | (28,390 | )
(1) During fiscal 2025, we incurred a restructuring related charge totaling $1.6 million, which pertained to losses on the disposal, valuation, and markdowns of inventory related to the closure of our manufacturing facility located in Quebec, Canada. (2) For fiscal 2025, restructuring expense of $7.7 million mostly relates to the mattress fabrics segment. The $7.7 million restructuring expense represents costs associated with: (i) consolidating the company's North American mattress fabrics operations, including the closure of the company's Property located in Quebec, Canada; (ii) consolidating two leased facilities related to the sewn mattress cover operation located in Ouanaminthe, Haiti, into one facility and reducing other operating expenses at this location; (iii) initial costs related to consolidating production and distribution activities from the upholstery fabrics distribution center located in Burlington, North Carolina to the mattress fabrics manufacturing and distribution center located in Stokesdale, North Carolina; and (v) other expenses incurred as part of the company's strategic plan to transform it's operating model as announced on April 24, 2025. See Note 10 located in the consolidated financial statements for further details regarding the restructuring activities announced on May 1, 2024 (first quarter of fiscal 2025) and April 24, 2025 (fourth quarter of fiscal 2025). (3) During fiscal 2024, we incurred a restructuring related charge of $40,000, which pertained to markdowns of inventory related to the discontinuation of production of cut and sewn upholstery kits at the company's facility in Ouanaminthe, Haiti. (4) For fiscal 2024, restructuring expense of $636,000 represents impairment charges related to equipment of $329,000 and employee termination benefits of $103,000 related to the discontinuation of production of cut and sewn upholstery kits at the company's facility in Ouanaminthe, Haiti. In addition, during the fourth quarter of fiscal 2024, restructuring expense of $204,000 was incurred for employee termination benefits related to the closure of the upholstery fabrics finishing operation located in Shanghai China. (5) During fiscal 2023, we incurred a restructuring related charge totaling $98,000, which pertained to loss on disposal and markdowns of inventory related to the exit of our cut and sewn upholstery fabrics operation located in Shanghai, China. (6) For fiscal 2023, restructuring expense of $1.4 million relates to both our restructuring activities for our cut and sewn upholstery fabrics operations located in Shanghai, China, which occurred during the second quarter of fiscal 2023, and those located in Ouanaminthe, Haiti, which occurred during the third and fourth quarters of fiscal 2023. Restructuring expense represents employee termination benefits of $507,000, lease termination costs of $481,000, impairment losses totaling $357,000 that relate to leasehold improvements and equipment, and $51,000 for other associated costs. Balance sheet information for our business segments follow:
(dollars in thousands) |  | April 27, 2025 |  |  |  | April 28, 2024 |  |
segment assets |  |  |  |  |  |  |  |
mattress fabrics |  |  |  |  |  |  |  |
accounts receivable |  | $ | 10,576 |  |  |  | $ | 10,003 |  |
inventory |  |  | 33,293 |  |  |  |  | 27,671 |  |
property, plant, and equipment (1) (2) |  |  | 23,259 |  |  |  |  | 31,472 |  |
assets held for sale (3) |  |  | 2,177 |  |  |  |  | — |  |
right of use assets (4) (5) |  |  | 125 |  |  |  |  | 1,627 |  |
total mattress fabrics assets |  |  | 69,430 |  |  |  |  | 70,773 |  |
upholstery fabrics |  |  |  |  |  |  |  |
accounts receivable |  |  | 11,268 |  |  |  |  | 11,135 |  |
inventory |  |  | 16,016 |  |  |  |  | 17,172 |  |
property, plant, and equipment (6) (7) |  |  | 1,010 |  |  |  |  | 1,125 |  |
right of use assets (8) (9) |  |  | 2,678 |  |  |  |  | 1,952 |  |
total upholstery fabrics assets |  |  | 30,972 |  |  |  |  | 31,384 |  |
total segment assets |  |  | 100,402 |  |  |  |  | 102,157 |  |
non-segment assets |  |  |  |  |  |  |  |
cash and cash equivalents |  |  | 5,629 |  |  |  |  | 10,012 |  |
short-term investments – rabbi trust |  |  | 1,325 |  |  |  |  | 903 |  |
short-term note receivable |  |  | 280 |  |  |  |  | 264 |  |
current income taxes receivable |  |  | — |  |  |  |  | 350 |  |
other current assets |  |  | 2,970 |  |  |  |  | 3,371 |  |
long-term note receivable |  |  | 1,182 |  |  |  |  | 1,462 |  |
deferred income taxes |  |  | 637 |  |  |  |  | 518 |  |
property, plant, and equipment (10) |  |  | 567 |  |  |  |  | 585 |  |
right of use assets (11) |  |  | 3,105 |  |  |  |  | 2,624 |  |
intangible assets |  |  | 960 |  |  |  |  | 1,876 |  |
long-term investments - rabbi trust |  |  | 5,722 |  |  |  |  | 7,102 |  |
other assets |  |  | 591 |  |  |  |  | 830 |  |
total assets |  | $ | 123,370 |  |  |  | $ | 132,054 |  |
(1) The $23.3 million as of April 27, 2025, represents property, plant, and equipment of $22.3 million, and $955,000 located in the U.S. and Haiti, respectively. (2) The $31.5 million as of April 28, 2024, represents property, plant, and equipment of $21.5 million, $9.4 million, and $555,000 located in the U.S., Canada, and Haiti, respectively. (3) The $2.2 million as of April 27, 2025, represents assets held for sale located in Canada. (4) The $125,000 as of April 27, 2025, represents right of use assets located in Haiti. (5) The $1.6 million as of April 28, 2024, represents right of use assets of $1.1 million and $545,000 located in Haiti and Canada, respectively. (6) The $1.0 million as of April 27, 2025, represents property, plant, and equipment of $940,000 and $70,000 located in the U.S. and China, respectively. (7) The $1.1 million as of April 28, 2024, represents property, plant, and equipment of $1.0 million and $120,000 located in the U.S. and China, respectively. (8) The $2.7 million as of April 27, 2025, represents right of use assets of $1.7 million and $1.0 million located in China and the U.S., respectively. (9) The $2.0 million as of April 28, 2024, represents right of use assets of $1.3 million and $709,000 located in the U.S. and China, respectively (10) The $567,000 as of April 27, 2025, and $585,000 as of April 28, 2024, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics and upholstery fabrics segments located in the U.S. (11) The $3.1 million as of April 27, 2025, and $2.6 million as of April 28, 2024, represent right of use assets associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics and upholstery fabrics segments located in the U.S. Capital expenditures and depreciation expense information for our business segments follow:
(dollars in thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |
capital expenditures (1): |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 1,550 |  |  | $ | 3,474 |  |  | $ | 1,125 |
upholstery fabrics |  |  | 285 |  |  |  | 271 |  |  |  | 467 |
unallocated corporate |  |  | 792 |  |  |  | 255 |  |  |  | 97 |
total capital expenditures |  | $ | 2,627 |  |  | $ | 4,000 |  |  | $ | 1,689 |
depreciation expense |  |  |  |  |  |  |  |  |
mattress fabrics (2) |  | $ | 6,178 |  |  | $ | 5,883 |  |  | $ | 6,050 |
upholstery fabrics |  |  | 601 |  |  |  | 638 |  |  |  | 795 |
total depreciation expense |  | $ | 6,779 |  |  | $ | 6,521 |  |  | $ | 6,845 |
(1) Capital expenditure amounts are stated on an accrual basis. See Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis. (2) During fiscal 2025, depreciation expense for the mattress fabrics segment included additional depreciation expense related to the shortening of useful lives of equipment associated with the closure of operations at our manufacturing facility located in Quebec, Canada. The amount of additional depreciation expense totaling $1.3 million was classified as restructuring expense in our fiscal 2025 Consolidated Statement of Net Loss.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration