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Sep 27, 2020
Unifi Q1 2021 Earnings Report
Reported strong sequential growth driven by agile global business model and innovative culture.
Key Takeaways
Unifi, Inc. reported better-than-anticipated results for the first quarter of fiscal 2021, demonstrating the resilience of its business and the agility of its global model. Net sales increased 64% sequentially compared to the fourth quarter of fiscal 2020. REPREVE® Fiber products reached a quarterly record of 35% of net sales.
Net sales were $141.5 million, a decrease of 21% year-over-year, but an increase of 64% sequentially compared to the fourth quarter of fiscal 2020.
Revenues from REPREVE® Fiber products represented a quarterly record of 35% of net sales compared to 31% in the first quarter of fiscal 2020.
Gross margin was 10.3%, an increase of 60 basis points year-over-year, despite the net sales decrease of 21% year-over-year.
Net income was $3.4 million, or $0.18 of diluted earnings per share (“EPS”).
Forward Guidance
For fiscal 2021, assuming no further significant disruptions to global markets or further adverse impacts from COVID-19, the Company notes and expects encouraging net sales trends and growth in profitability with sales of REPREVE® and value-added products expected to continue recent growth rates and increase as a percentage of net sales; and $22.0 to $25.0 million of capital expenditures are expected for fiscal 2021.
Positive Outlook
- The initial recovery in net sales and profitability in the first quarter of fiscal 2021 appears consistent with the improvements in the apparel industry, in spite of the lingering challenges of COVID-19
- Entering the second quarter of fiscal 2021, net sales trends are encouraging and are expected to continue to improve
- Growth in profitability is expected to follow at commensurate rates, considering any routine seasonal net sales and expense items
- Sales of REPREVE® and value-added products are expected to continue recent growth rates
- Sales of REPREVE® and value-added products are expected to increase as a percentage of net sales
Historical Earnings Impact
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