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Oct 01, 2023
Unifi Q1 2024 Earnings Report
Unifi's financial performance was impacted by weak apparel demand, resulting in a net loss and a decrease in net sales, though cost control measures and reduced capital expenditures aided cash generation.
Key Takeaways
Unifi reported a decrease in net sales and a net loss for Q1 2024, primarily due to weak apparel demand. However, disciplined cost control measures and reduced capital expenditures helped in cash generation and debt reduction.
Net sales decreased by 22.7% to $138.8 million due to weak apparel demand.
Revenues from REPREVE Fiber products were $42.5 million, representing 31% of net sales.
Gross loss was $0.6 million with a gross margin of (0.4)%, impacted by lower apparel demand.
Net loss was $13.3 million, or ($0.73) per share.
Revenue by Geographic Location
Forward Guidance
UNIFI expects second quarter fiscal 2024 net sales, Adjusted EBITDA, and capital expenditures to be generally consistent with first quarter fiscal 2024 results, and the effective tax rate is expected to demonstrate continued volatility.
Positive Outlook
- Progress made with beyond apparel strategic initiatives.
- Conversations with customers are promising.
- Anticipate that calendar 2024 will bring an improved demand environment.
- Remain optimistic about long-term growth prospects.
- Team’s ability to drive innovation, grow the REPREVE brand, and increase market share.
Challenges Ahead
- Pace of recovery across business and apparel industry has been slower than anticipated.
- Second quarter fiscal 2024 net sales expected to be consistent with first quarter fiscal 2024 results.
- Second quarter fiscal 2024 Adjusted EBITDA expected to be consistent with first quarter fiscal 2024 results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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