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Jan 01, 2023
Unifi Q2 2023 Earnings Report
Unifi's sales and profitability were impacted by continued near-term demand disruption for apparel production, while cash generated from operations outpaced profitability headwinds.
Key Takeaways
Unifi, Inc. reported a decrease in net sales by 32.4% to $136.2 million compared to the second quarter of fiscal 2022, primarily due to temporary demand disruption in the Americas and Asia segments. The company experienced a gross loss of $8.0 million and an operating loss of $19.8 million, with a net loss of $18.0 million, or ($1.00) per share. Despite these challenges, operating cash flows generated for the six months ended January 1, 2023, were $7.3 million.
Net sales decreased by 32.4% to $136.2 million due to demand disruption in the Americas and Asia.
REPREVE Fiber products accounted for 31% of net sales, totaling $42.9 million.
Gross loss was $8.0 million, with a gross margin of (5.9%).
Operating loss amounted to $19.8 million, and net loss was $18.0 million, or ($1.00) per share.
Unifi
Unifi
Unifi Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comBrazil Revenue
CapyFin.comAsia Revenue
CapyFin.com Forward Guidance
UNIFI expects a modest recovery in the operating environment and textile demand trends for the apparel market during calendar 2023.
Positive Outlook
- Revenue to increase sequentially.
- Sequential operating performance improvement.
- Slightly lower sequential capital expenditures, with further reductions anticipated during the fourth quarter of fiscal 2023.
Challenges Ahead
- Revenue will be adversely impacted by the Lunar New Year holiday in Asia.
- Continued volatility and unfavorability in the effective tax rate.
Revenue & Expenses
Visualization of income flow from segment revenue to net income