Unifi sees Q4 net sales sequentially improving from Q3
Fourth Quarter Fiscal 2025 Expectations: UNIFI anticipates improved net sales and Adjusted EBITDA in Q4 fiscal 2025, driven by recovery in the Americas Segment, alongside restructuring costs of $6.0 million to $8.0 million and tax rate volatility.
CEO's Outlook on Business Strategy: CEO Eddie Ingle emphasizes the company's commitment to enhancing operations and financial performance while focusing on sustainable products to support a circular economy and future growth.
Trade with 70% Backtested Accuracy
Analyst Views on UFI
About UFI
About the author
Unifi, Inc. Reports Q2 2026 Earnings Highlights
- Significant Cost Restructuring: Unifi's cost restructuring efforts in its North American operations are yielding results, with management reporting improvements in gross margins and free cash flow, alongside a 25% reduction in workforce, which will enhance future profitability and cash flow.
- Sales Decline Impact: Despite a 12.5% year-over-year decline in net sales for the second quarter, management remains optimistic about future sales growth, particularly in the U.S. and Central America, as they expect improvements with a lower cost base.
- Free Cash Flow Growth: Year-to-date, Unifi's free cash flow reached $13.3 million, reflecting a significant increase compared to the previous year, while net debt was reduced to $75 million, indicating positive progress in operational efficiency and financial health.
- Optimistic Future Outlook: Management anticipates that with improvements in the global trade environment and the full realization of cost reduction initiatives, the third quarter will see higher revenue growth, with a new revenue breakeven point set at $575 million, demonstrating confidence in long-term growth.
Unifi Reports Q2 Earnings Beat Expectations
- Earnings Beat: Unifi's Q2 GAAP EPS of -$0.53 exceeded expectations by $0.04, indicating the company's ability to maintain some level of profitability despite ongoing losses.
- Revenue Performance: The company reported Q2 revenue of $121.3M, a 12.7% year-over-year decline, yet it surpassed expectations by $1.12M, demonstrating resilience in sales amidst market challenges.
- Cost Savings Signal: Unifi anticipates achieving a $20M run rate in cost savings by the end of 2026, which will help improve future profitability and open new growth opportunities beyond apparel.
- Market Reaction: Despite the revenue decline, Unifi's earnings report has garnered market attention, with investors expressing optimism about its future cost control and business expansion strategies, potentially leading to a positive impact on stock prices.
Three Consumer Stocks Set to Surge in November
Oversold Stocks Opportunity: The consumer discretionary sector has several oversold stocks, presenting potential buying opportunities for undervalued companies, particularly those with an RSI below 30.
Portillos Inc Performance: Portillos Inc (PTLO) reported weaker-than-expected quarterly results, leading to a 22% stock decline over the past month, with an RSI of 29.9 and a closing price of $4.72.
Unifi Inc Update: Unifi Inc (UFI) experienced a narrower-than-expected quarterly loss, resulting in a 20% drop in stock price over the last month, an RSI of 29.7, and a closing price of $3.70.
Brinker International Results: Despite posting strong quarterly earnings, Brinker International (EAT) saw an 18% decline in stock price over the past month, with an RSI of 29.3 and a closing price of $105.81.
3 Apparel Manufacturer Stocks Showing Signs of Weakness: Significant Drop in Growth Ratings
Declining Growth Scores: Three apparel manufacturers, Oxford Industries Inc., LightInTheBox Holding Co. Ltd., and Unifi Inc., have experienced significant drops in their Growth scores in Benzinga’s Edge Stock Rankings, indicating poor revenue and earnings performance.
Oxford Industries Inc.: The company, known for brands like Tommy Bahama, reported declines across all sales channels and lowered future revenue guidance, resulting in a Growth score decrease from 74.29 to 37.42.
LightInTheBox Holding Co. Ltd.: Despite improvements in gross margins, the company faced a sharp decline in revenue, causing its Growth score to plummet from 46.95 to 21.94.
Unifi Inc.: The manufacturer of recycled fibers saw its Growth score drop from 31.72 to 13.08 due to declining revenue and margin compression, with its REPREVE product line's contribution to net sales also decreasing.
Unifi (UFI) Posts Q4 Loss, Falls Short of Revenue Projections
Quarterly Loss Report: Unifi (UFI) reported a quarterly loss of $0.56 per share, better than the expected loss of $0.80, but worse than a loss of $0.22 per share from the previous year.
Revenue Performance: The company generated revenues of $138.54 million, missing the consensus estimate by 3.46% and down from $157.45 million a year ago.
Stock Outlook: Unifi shares have declined approximately 28.2% this year, with a Zacks Rank of #4 (Sell), indicating expectations for continued underperformance in the near future.
Industry Context: The Textile - Products industry is currently ranked in the bottom 6% of over 250 Zacks industries, which may negatively impact Unifi's stock performance moving forward.
UNIFI®, Makers of REPREVE®, Announces the Sale of Manufacturing Facility
Transaction Overview: UNIFI, Inc. has sold its manufacturing facility in Madison, North Carolina for $45 million, using proceeds to significantly reduce its debt by approximately $43.3 million and strengthen its financial position.
Operational Impact: The closure of the Madison facility is expected to lead to over $20 million in annual operating cost savings and optimize production capacity across other locations in North and Central America, enhancing profitability.
Unifi, Inc. Reports Q2 2026 Earnings Highlights
- Significant Cost Restructuring: Unifi's cost restructuring efforts in its North American operations are yielding results, with management reporting improvements in gross margins and free cash flow, alongside a 25% reduction in workforce, which will enhance future profitability and cash flow.
- Sales Decline Impact: Despite a 12.5% year-over-year decline in net sales for the second quarter, management remains optimistic about future sales growth, particularly in the U.S. and Central America, as they expect improvements with a lower cost base.
- Free Cash Flow Growth: Year-to-date, Unifi's free cash flow reached $13.3 million, reflecting a significant increase compared to the previous year, while net debt was reduced to $75 million, indicating positive progress in operational efficiency and financial health.
- Optimistic Future Outlook: Management anticipates that with improvements in the global trade environment and the full realization of cost reduction initiatives, the third quarter will see higher revenue growth, with a new revenue breakeven point set at $575 million, demonstrating confidence in long-term growth.
Unifi Reports Q2 Earnings Beat Expectations
- Earnings Beat: Unifi's Q2 GAAP EPS of -$0.53 exceeded expectations by $0.04, indicating the company's ability to maintain some level of profitability despite ongoing losses.
- Revenue Performance: The company reported Q2 revenue of $121.3M, a 12.7% year-over-year decline, yet it surpassed expectations by $1.12M, demonstrating resilience in sales amidst market challenges.
- Cost Savings Signal: Unifi anticipates achieving a $20M run rate in cost savings by the end of 2026, which will help improve future profitability and open new growth opportunities beyond apparel.
- Market Reaction: Despite the revenue decline, Unifi's earnings report has garnered market attention, with investors expressing optimism about its future cost control and business expansion strategies, potentially leading to a positive impact on stock prices.
Three Consumer Stocks Set to Surge in November
Oversold Stocks Opportunity: The consumer discretionary sector has several oversold stocks, presenting potential buying opportunities for undervalued companies, particularly those with an RSI below 30.
Portillos Inc Performance: Portillos Inc (PTLO) reported weaker-than-expected quarterly results, leading to a 22% stock decline over the past month, with an RSI of 29.9 and a closing price of $4.72.
Unifi Inc Update: Unifi Inc (UFI) experienced a narrower-than-expected quarterly loss, resulting in a 20% drop in stock price over the last month, an RSI of 29.7, and a closing price of $3.70.
Brinker International Results: Despite posting strong quarterly earnings, Brinker International (EAT) saw an 18% decline in stock price over the past month, with an RSI of 29.3 and a closing price of $105.81.
3 Apparel Manufacturer Stocks Showing Signs of Weakness: Significant Drop in Growth Ratings
Declining Growth Scores: Three apparel manufacturers, Oxford Industries Inc., LightInTheBox Holding Co. Ltd., and Unifi Inc., have experienced significant drops in their Growth scores in Benzinga’s Edge Stock Rankings, indicating poor revenue and earnings performance.
Oxford Industries Inc.: The company, known for brands like Tommy Bahama, reported declines across all sales channels and lowered future revenue guidance, resulting in a Growth score decrease from 74.29 to 37.42.
LightInTheBox Holding Co. Ltd.: Despite improvements in gross margins, the company faced a sharp decline in revenue, causing its Growth score to plummet from 46.95 to 21.94.
Unifi Inc.: The manufacturer of recycled fibers saw its Growth score drop from 31.72 to 13.08 due to declining revenue and margin compression, with its REPREVE product line's contribution to net sales also decreasing.
Unifi (UFI) Posts Q4 Loss, Falls Short of Revenue Projections
Quarterly Loss Report: Unifi (UFI) reported a quarterly loss of $0.56 per share, better than the expected loss of $0.80, but worse than a loss of $0.22 per share from the previous year.
Revenue Performance: The company generated revenues of $138.54 million, missing the consensus estimate by 3.46% and down from $157.45 million a year ago.
Stock Outlook: Unifi shares have declined approximately 28.2% this year, with a Zacks Rank of #4 (Sell), indicating expectations for continued underperformance in the near future.
Industry Context: The Textile - Products industry is currently ranked in the bottom 6% of over 250 Zacks industries, which may negatively impact Unifi's stock performance moving forward.
UNIFI®, Makers of REPREVE®, Announces the Sale of Manufacturing Facility
Transaction Overview: UNIFI, Inc. has sold its manufacturing facility in Madison, North Carolina for $45 million, using proceeds to significantly reduce its debt by approximately $43.3 million and strengthen its financial position.
Operational Impact: The closure of the Madison facility is expected to lead to over $20 million in annual operating cost savings and optimize production capacity across other locations in North and Central America, enhancing profitability.
