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Unifi Q3 2025 Earnings Report
Unifi reported a decrease in net sales and a net loss for the third fiscal quarter ended March 30, 2025, primarily due to a less favorable sales mix and lower sales volumes in Asia, alongside unfavorable foreign currency effects in Brazil.
Key Takeaways
Unifi, Inc. reported a net loss of $16.8 million on net sales of $146.6 million for the third fiscal quarter of 2025. This represents a decrease in sales of 1.6% compared to the same period last year, driven by a less favorable sales mix and lower sales volumes in the Asia Segment, as well as unfavorable foreign currency effects in the Brazil Segment. The company's gross loss was $0.4 million, and adjusted EBITDA was $(4.9) million.
Net sales decreased by 1.6% to $146.6 million, primarily due to a less favorable sales mix and lower sales volumes in Asia, and unfavorable foreign currency effects in Brazil.
The company reported a gross loss of $0.4 million, a significant decline from a gross profit of $4.8 million in the prior year.
Net loss increased to $16.8 million, or $0.92 per share, compared to a net loss of $10.3 million, or $0.57 per share, in the third quarter of fiscal 2024.
Adjusted EBITDA was $(4.9) million, compared to $(0.8) million in the third quarter of fiscal 2024.
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 to improve sequentially in the fourth quarter of fiscal 2025, driven by further recovery in the Americas Segment. The company anticipates continued restructuring and transition expenses.
Positive Outlook
- Net sales are expected to improve sequentially from the third quarter of fiscal 2025.
- Adjusted EBITDA is expected to improve sequentially from the third quarter of fiscal 2025.
- Further recovery is anticipated for the Americas Segment.
- The sale of the Madison, North Carolina manufacturing facility is expected to reduce outstanding debt and enhance financial position.
- Annual cost savings of approximately $20.0 million are expected from the manufacturing footprint reduction, primarily from lower headcount and operational synergies.
Challenges Ahead
- Continued restructuring and transition expenses are expected, estimated between $6.0 million and $8.0 million.
- Continued volatility in the effective tax rate is anticipated.
- Uncertainty around the global macroeconomic environment persists.
- Equipment relocation and abandonment costs are a significant component of restructuring expenses.
- The outlook assumes no meaningful changes in business activities resulting from evolving tariff and trade negotiations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income