Exhibit 18
KPMG LETTERHEAD

July 15, 2004


The Board of Directors
Culp, Inc.
P.O. Box 2686
High Point, North Carolina 27261


Dear Directors:

We  have  audited  the   consolidated   balance  sheets  of  Culp,   Inc.  and
subsidiaries  (the  "Company")  as of May 2, 2004 and April 27, 2003,  and the
related  consolidated  statements of income (loss),  shareholders'  equity and
cash flows for each of the years in the  three-year  period ended May 2, 2004,
and have  reported  thereon  under  date of June 4, 2004.  The  aforementioned
consolidated  financial  statements  and our audit report thereon are included
in the  Company's  annual  report on Form 10-K for the year ended May 2, 2004.
As stated in Note 1 to those consolidated  financial  statements,  the Company
changed its method of accounting  for  inventories  from the lower of last-in,
first-out  (LIFO) cost or market to the lower of  first-in,  first-out  (FIFO)
cost or market and  states  that the newly  adopted  accounting  principle  is
preferable in the  circumstances  as it provides a better  matching of revenue
and expenses.  Additionally, the change will enable the financial reporting to
parallel the way management  assesses the financial and operating  performance
of the Company's  segments.  In accordance with your request, we have reviewed
and discussed with Company  officials the  circumstances and business judgment
and  planning  upon which the  decision  to make this  change in the method of
accounting was based.

With regard to the aforementioned  accounting change,  authoritative  criteria
have not been  established for evaluating the  preferability of one acceptable
method of accounting over another acceptable method.  However, for purposes of
the Company's  compliance with the requirements of the Securities and Exchange
Commission, we are furnishing this letter.

Based on our review and  discussion,  with reliance on  management's  business
judgment and planning,  we concur that the newly adopted  method of accounting
is preferable in the Company's circumstances.

Very truly yours,

\S\ KPMG LLP
Greensboro, North Carolina