Unifi Reports $11.4 Million Net Loss, Despite 1.4% Increase in Net Sales for Q2 Fiscal 2025

Unifi, Inc. reported its financial results for the second quarter of fiscal 2025, revealing a net loss of $11.4 million, or $0.62 per share, compared to a net loss of $19.8 million, or $1.10 per share, in the same period last year. The company’s net sales increased by 1.4% to $138.9 million, up from $136.9 million in the prior year, driven by improved sales volumes across its reportable segments. However, gross profit fell significantly to $534,000 from $1.6 million, primarily due to weaker profitability in the Asia segment and inflationary pressures affecting the Americas segment.

In terms of operational performance, Unifi's total assets decreased to $439.7 million from $469.2 million as of June 30, 2024. The company’s cash and cash equivalents also declined to $18.7 million from $26.8 million. Total liabilities remained relatively stable at $202.5 million, compared to $205.9 million in the previous period. The company’s long-term debt increased to $123 million from $117.8 million, reflecting ongoing financing needs amid challenging market conditions.

Strategically, Unifi has focused on expanding its market share and enhancing its product offerings, particularly in the non-apparel sector with its REPREVE® fiber products. The company recorded a gain of $4.3 million from the sale of a warehouse in North Carolina, which contributed positively to its financial results. However, the company also faced restructuring costs in the previous fiscal period, which were absent in the current quarter, aiding in the reduction of net loss.

Unifi's operational metrics showed a mixed performance across its segments. The Americas segment reported a 3.2% increase in net sales to $83.1 million, while the Brazil segment saw a 5.5% increase to $27.5 million, benefiting from market share gains and improved pricing. Conversely, the Asia segment experienced a decline in net sales of 6.6% to $28.3 million, attributed to a weak demand environment. The company’s total employee headcount remained stable, reflecting its ongoing efforts to manage costs while navigating a challenging economic landscape.

Looking ahead, Unifi remains cautious about the economic environment, which has been impacted by inflation, elevated interest rates, and geopolitical tensions. The company plans to continue monitoring these factors while leveraging its global supply chain to maintain operational efficiency. Unifi's management expressed optimism about future growth opportunities, particularly in expanding its REPREVE® product line and enhancing brand awareness, which they believe will contribute to improved revenue and profitability in the long term.