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Dec 29, 2024
Unifi Q2 2025 Earnings Report
Unifi's financial performance saw a slight increase in net sales, but a decrease in gross profit. The company experienced a net loss, though improved from the previous year. Efficiency initiatives are expected to drive future growth.
Key Takeaways
Unifi, Inc. reported a 1.4% increase in net sales to $138.9 million for Q2 2025, driven by higher sales volumes. However, gross profit decreased to $0.5 million, and the company experienced a net loss of $11.4 million, improved from a net loss of $19.8 million in the previous year. The company is transitioning certain manufacturing operations to enhance efficiency and profitability.
Net sales increased by 1.4% to $138.9 million, driven by higher sales volumes.
REPREVE Fiber products accounted for 31% of net sales, totaling $43.3 million.
Net loss improved to $11.4 million, or $0.62 per share, compared to $19.8 million, or $1.10 per share, in the previous year.
The company is consolidating its U.S. manufacturing footprint to become leaner and more profitable.
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 net sales and Adjusted EBITDA improving sequentially from the second quarter of fiscal 2025, primarily driven by higher revenues for the Americas Segment.
Positive Outlook
- Net sales and Adjusted EBITDA are expected to improve sequentially from the second quarter of fiscal 2025.
- Higher revenues are anticipated for the Americas Segment.
- The company is focusing on optimizing its business.
- The company is improving its profitability.
- The company is making strategic investments in innovation.
Challenges Ahead
- Capital expenditures are expected to be between $5.0 million and $6.0 million due to the transition of production out of one North Carolina facility.
- Continued volatility in the effective tax rate is expected.
- U.S. manufacturing transition costs will partially offset second half fiscal 2025 underlying profit generation.
- Outlook assumes no meaningful changes in business activities resulting from the evolving tariff and trade negotiations.
- Results for the second quarter came in slightly below expectations due to global and localized pressures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income