Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2025 were $146.6 million, down 2% year-over-year, primarily due to lower sales volumes in the Asia segment and unfavorable foreign currency impacts [17][25] - Gross margin in the Americas segment declined by 350 basis points, driven by inflationary pressures and transition costs related to the manufacturing footprint reduction [25][26] - The company anticipates significant savings of $20 million from the consolidation of manufacturing activities across North and Central America, expected to fully materialize in calendar 2026 [27][30] Business Line Data and Key Metrics Changes - In the Americas segment, net sales increased by 3% compared to the prior year, driven by sales growth initiatives and improved market conditions [25][26] - The Asia segment experienced a 12% decline in net sales, attributed to macroeconomic pressures and a less favorable sales mix [26][27] - REPREVE represented 31% of sales during the quarter, remaining stable compared to the previous year despite macroeconomic challenges in China [18][19] Market Data and Key Metrics Changes - Demand in North America is improving, particularly in Central America, where over 50% of business has been reprieved, indicating positive future prospects [6][7] - The Brazil segment continues to perform well due to a stable market for textured polyester, despite pricing pressures from imports [17][26] - The company is monitoring the tariff environment closely, with expectations of a potential 10% to 15% revenue decline in Asia if current tariffs remain in place [42][45] Company Strategy and Development Direction - The company is focused on rationalizing assets and improving profitability, including the closure of the Madison facility and the sale of the facility for $53.2 million to enhance the balance sheet [13][14] - Innovation remains a key focus, with traction in military wear and carpet products expected to drive revenue growth in the new fiscal year [9][10] - The company aims to leverage its asset-light model in Asia while exploring opportunities in markets beyond apparel, such as automotive and packaging [50][81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth and solid economics in the new fiscal year, driven by ongoing initiatives and improved capacity utilization [11][14] - The global tariff situation remains fluid, but management believes it could lead to a net neutral to positive impact on the business over the next few years [17][42] - The company expects to generate positive free cash flow and improve investment opportunities as restructuring efforts yield results [30][32] Other Important Information - The company received several accolades for its sustainability efforts, including recognition from Fast Company and Newsweek, highlighting its commitment to innovation and circularity [21][22] - The Madison facility's closure is expected to be completed by mid-June, with no anticipated loss in revenues or disruptions in customer service [14][27] Q&A Session Summary Question: FX impact in Brazil - The foreign exchange headwind for the Brazil segment was approximately $4 million for the quarter and $11 million for the nine months [46] Question: Margins in Beyond Apparel markets - Margins for military wear and carpet products are at least twice as good as the base business [37][39] Question: Impact of de minimis rule exemption - The overall impact of de minimis and tariffs could lead to a downturn in business in Asia by 10% to 15% [42][45] Question: Cost savings from facility consolidation - Some cost savings are expected to materialize in the first quarter of fiscal 2026, but full run rate savings will not be realized until later in the calendar year [47][48] Question: Profitability disclosure for REPREVE - REPREVE is a material component of the Asia segment, accounting for over 80% of overall Asia segment sales [64][66] Question: Future asset sales - Currently, there are no other assets slated for sale, but the company continues to evaluate its balance sheet for additional opportunities [81]