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 [18][26][48] - Gross margin in the Americas segment declined by 350 basis points, driven by inflationary pressures and transition costs related to the manufacturing footprint reduction [26][27] - The sale of the Madison facility for $53.2 million is expected to significantly improve the balance sheet and reduce outstanding debt [13][28] 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 [18][26] - The Asia segment experienced a 12% decline in net sales, attributed to macroeconomic pressures and a less favorable sales mix [19][27] - REPREVE represented 31% of sales during the quarter, remaining stable compared to the previous year despite macroeconomic challenges in China [19][20] Market Data and Key Metrics Changes - Demand in North America is improving, particularly in Central America, where over 50% of business has been reprieved recently [6][7] - The Brazil segment continues to perform well due to a stable market for textured polyester, despite pricing pressures from imports [18][26] - The tariff situation remains fluid, with potential benefits for the Americas segment if tariffs on China remain in place [15][16] Company Strategy and Development Direction - The company is focused on optimizing its business and improving profitability through asset rationalization and cost savings initiatives [3][14] - Innovation efforts are being emphasized, particularly in military wear and carpet, which are expected to yield better margins than the base business [8][12] - The company aims to leverage its asset-light model in Asia while exploring opportunities in new markets beyond apparel, such as automotive and packaging [51][52] 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][30] - The company is closely monitoring the tariff environment and expects it to have a net neutral to positive impact over the next few years [18][32] - Management anticipates significant savings from the consolidation of manufacturing activities, with a projected $20 million reduction in cost of sales [28][31] Other Important Information - The company has received several accolades for its sustainability efforts, including recognition from Fast Company and Newsweek [22] - The Madison facility is set to close in mid-June, with the transition expected to enhance liquidity and margin performance [14][28] 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 [47] Question: Margins in Beyond Apparel - Margins for military wear and carpet are at least twice as good as the base business [37] Question: Impact of de minimis rule exemption - The overall impact of de minimis and tariffs could lead to a downturn in Asia business by 10% to 15% [43][46] Question: Cost savings realization timeline - Some cost savings from facility consolidation 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 [48][49] Question: Profitability disclosure for REPREVE - REPREVE constitutes over 80% of overall Asia segment sales, but detailed profitability metrics will not be disclosed at this time [66][68]