Unifi Reports $16.8 Million Net Loss and Revenue Decline in Latest Quarter

Unifi, Inc. reported a net loss of $16.8 million for the three months ended March 30, 2025, compared to a loss of $10.3 million in the same period last year, reflecting a 63.1% increase in losses. Revenue for the quarter decreased by 1.6% to $146.6 million, down from $149.0 million in the prior year. The company's gross profit turned negative, resulting in a gross loss of $445,000, a significant decline from a gross profit of $4.8 million in the previous year. The increase in net loss was attributed to lower gross profit margins and restructuring costs associated with the consolidation of manufacturing operations.

For the nine-month period ending March 30, 2025, Unifi's net sales increased by 1.9% to $432.8 million, compared to $424.8 million in the prior year. The gross profit for this period rose to $9.5 million, a 63.9% increase from $5.8 million in the previous nine months. The improvement in gross profit was primarily driven by increased sales volumes and variable cost-saving initiatives, although the company still faced challenges with fixed cost absorption in its Americas Segment. The net loss for the nine months was $35.8 million, a 17.5% improvement from a loss of $43.4 million in the prior year.

Strategically, Unifi announced the closure of its Madison, North Carolina facility, with plans to transition operations to other production sites in North and Central America. This restructuring is expected to incur additional costs, estimated between $6 million and $8 million, as the company aims to enhance operational efficiency. The company also recorded a gain of $4.3 million from the sale of a warehouse in Yadkinville, North Carolina, which will be used to reduce outstanding debt.

Operationally, Unifi's Americas Segment saw a 2.6% increase in net sales to $93.5 million, while the Brazil Segment reported a decline of 4.9% to $28.1 million, impacted by unfavorable foreign currency translation effects. The Asia Segment experienced a more significant drop, with net sales decreasing by 12.0% to $24.9 million, primarily due to weak global demand for apparel. The company continues to focus on expanding its market share and product offerings, particularly in non-apparel markets with its REPREVE® products.

Looking ahead, Unifi remains cautious about the economic environment, which has been characterized by inflationary pressures and fluctuating demand. The company is committed to monitoring market conditions and adjusting its strategies accordingly to maintain liquidity and operational stability. Unifi's management believes that its ongoing initiatives, including the consolidation of manufacturing operations and expansion into new markets, will position the company for improved performance in the future.