Unifi, Inc. reported a net loss of $24.6 million for fiscal 2026, translating to a loss of $1.33 per diluted share, compared to a net loss of $20.3 million, or $1.11 per diluted share, in fiscal 2025. The company's consolidated net sales decreased by 7% to $531.3 million, down from $571.3 million in the previous year. This decline was attributed to cautious customer ordering patterns and ongoing market volatility, particularly in the Americas and Asia segments, which faced significant demand headwinds due to geopolitical tensions and macroeconomic uncertainties. Despite the drop in sales, Unifi's gross profit improved to $30.5 million from $8.4 million in fiscal 2025, driven by cost-saving initiatives and improved manufacturing efficiencies.
The Americas Segment, which accounts for over 60% of Unifi's sales, saw a 6.5% decrease in net sales to $325.2 million, primarily due to a lower-priced sales mix and reduced sales volumes. However, this segment returned to profitability with a gross profit of $4.8 million, a significant improvement from a gross loss of $20.2 million in the prior year. The Brazil Segment's sales also fell by 3% to $115.1 million, impacted by competitive pricing pressures, while the Asia Segment experienced a 13.1% decline in sales to $90.9 million, reflecting lower demand and pricing challenges.
Strategically, Unifi has focused on consolidating its Americas yarn manufacturing operations and implementing a Profit Improvement Plan aimed at reducing costs and enhancing operational efficiency. The company has also prioritized the expansion of its REPREVE® brand, which represents a significant portion of its product offerings. In fiscal 2026, REPREVE Fiber sales accounted for 30% of total net sales, although this was a slight decrease from 31% in fiscal 2025, reflecting the overall decline in customer demand.
Looking ahead, Unifi's management expressed optimism for fiscal 2027, citing a stronger balance sheet and a streamlined manufacturing footprint as key advantages. The company plans to invest between $7 million and $9 million in capital projects, primarily for routine maintenance, while continuing to evaluate opportunities for growth and market expansion. Unifi remains committed to sustainability and innovation, believing that these factors will be crucial for capturing future market share and improving profitability as global demand conditions stabilize.
About UNIFI INC
Unifi, Inc. manufactures and sells recycled and synthetic textile fibers, primarily polyester and nylon, serving yarn producers, knitters, and fabricators across global markets. Its core brand, REPREVE, emphasizes sustainability through recycled fibers. The company operates in North America, South America, and Asia, leveraging innovation, branding, and a diversified supply chain to compete in the global textile industry focused on performance, value-added, and environmentally responsible products.
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