Unifi(UFI) - 2026 Q1 - Quarterly Results

Financial Performance - Net sales for the first quarter of fiscal 2026 were $135.7 million, a decrease of 7.9% from $147.4 million in the first quarter of fiscal 2025[4][5] - Gross profit fell to $3.4 million with a gross margin of 2.5%, down from $9.5 million and 6.4% in the same quarter last year[4][6] - The net loss was $11.4 million, or $0.62 per diluted share, compared to a net loss of $7.6 million, or $0.42 per share, for the first quarter of fiscal 2025[4][7] - Adjusted EBITDA was $(2.5) million, a decline from $3.3 million in the first quarter of fiscal 2025[4][7] - The diluted earnings per share (EPS) for the three months ended September 28, 2025, was $(0.62), compared to $(0.42) for the same period in 2024[27] Revenue Breakdown - Revenues from REPREVE Fiber products were $39.3 million, representing 29% of net sales, compared to $44.7 million or 30% of net sales in the prior year[4] - The Americas segment reported net sales of $85.2 million, a slight decrease from $86.3 million in the prior year[22] Operational Changes - The company launched a restructuring program in October 2025 to enhance cost structure and improve profitability and cash flows[4] - The company incurred transition costs of $1,068 million related to the consolidation of its yarn manufacturing operations, which included facility closure and employee separation costs[25] - Management believes that the transition costs incurred will aid in the long-term consolidation and efficiency of operations[25] Future Outlook - UNIFI expects improved operating cash flows in the second quarter of fiscal 2026 due to working capital reductions and lower spending[9] - The company is focusing on minimizing operational and capital expenditures throughout fiscal 2026[9] - UNIFI plans to capitalize on investments in new innovations and circular textile solutions to strengthen its business[10] Debt and Cash Management - UNIFI's net debt as of September 28, 2025, was $99,790 million, an increase from $85,344 million as of June 29, 2025[28] - UNIFI's foreign operations held nearly all consolidated cash and cash equivalents as of September 28, 2025[29] Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EPS, to provide a clearer view of its operating performance[31] Strategic Focus - UNIFI's strategic initiatives include focusing on the REPREVE Fiber product line, which is part of its recycled platform[30]