Unifi gains traction toward return to profitability during third quarter

Unifi Inc. continued to make progress on a return to profitability with a $2.3 million loss for its third quarter of fiscal 2026, the Greensboro yarn manufacturer reported Tuesday.

By comparison, Unifi reported a $9.7 million loss for its second quarter, as well as a $16.8 million loss a year ago.

Unifi had an earnings loss of 12 cents a share. The average earnings forecast was a loss of 22 cents by one analyst surveyed by Zacks Investment Research.

Sales were down 11.3% to $130 million, due to "lower customer ordering patterns stemming from geopolitical, trade and tariff-related uncertainty."

As a result, Unifi has instituted a series of "responsive price increases associated with petrochemical-related inflation."

Unifi has three primary markets in the Americas, Brazil and Asia.

Americas sales were down 16.2% to $78.3 million, while Brazil sales rose 3.5% to $29.1 million and Asian sales declined 9.3% to $22.6 million.

Repreve sales were $38.2 million during the quarter, representing 29% of all sales. By comparison, Repreve sales were $34.3 million a year ago.

Repreve, introduced in 2006, is polyester yarn made from chips that come mainly from recycled bottles. Sorbtek is its moisture management yarn. Repreve-based yarns are used to make products for the apparel, outdoor, home textiles and automotive sectors.

Unifi completed during the second quarter its latest round of a restructuring that began in December 2024 that included an unidentified number of jobs eliminated. The reduction involved "variable manufacturing costs across labor, spend and support functions."

Unifi also reduced operating hours by an unspecified amount during the second quarter.

The manufacturer listed having 2,500 full-time and 200 temporary employees overall as of June 29, including: 100 at its Greensboro corporate office; a combined 1,700 in the United States, Colombia and El Salvador; 800 in Brazil; and 100 in China.

Nearly 1,000 employees have been listed at its Yadkinville manufacturing campus, which is one of the county's largest employers, and between a combined 300 to 350 in Madison and Reidsville.

Unifi chief executive Eddie Ingle said Tuesday in a news release that the restructuring "is beginning to translate into improved financial performance, highlighted by improved gross profit and debt reduction."

"It gives us confidence that we can generate strong profitability and cash flow from a lower revenue base going forward."

Ingle added that "our innovative beyond apparel business is continuing to gain traction, which should help support improved financial results."

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