Unifi, Inc., the owner of the Repreve fiber brand, reported a wider Adjusted loss in the fiscal first quarter ended September 29 as sales declined 7.9 percent year-over-year (y/y) to $135.7 million. The maker of recycled and synthetic yarns attributed the sales decline primarily to trade and tariff-related uncertainty and demand volatility across each business segment.

  • Revenues from Repreve Fiber products were $39.3 million, representing 29 percent of total net sales, compared to $44.7 million, or 30 percent of net sales, for the first quarter of fiscal 2025.

Gross profit was $3.4 million and gross margin was 2.5 percent, compared to gross profit of $9.5 million and 6.4 percent for the first quarter of fiscal 2025.

  • Brazil Segment gross profit decreased by $5.3 million, primarily due to import pricing pressures and lower sales volumes.
  • Asia Segment gross profit decreased by $0.5 million, primarily due to lower sales volumes.
  • Americas Segment gross profit decreased by $0.3 million, primarily from demand and production volatility.

In October 2025, Unifi launched an additional restructuring program to further enhance its cost structure and drive stronger profitability and cash flows in fiscal 2026.

Operating loss increased to $9.6 million in fiscal Q1, compared to $3.2 million in the prior-year period. The change was attributed primarily to lower gross profit and transition costs.

Net loss was $11.4 million, or a loss of 62 cents per diluted share, which includes $1.1 million in transition costs, compared to a net loss of $7.6 million, or a loss of 42 cents per diluted share, for the first quarter of fiscal 2025. The Adjusted net loss was $10.3 million, excluding $1.1 million in transition costs, compared to an adjusted net loss of $7.6 million in the prior-year period.

Adjusted EBITDA was negative $2.5 million, compared to positive $3.3 million for the first quarter of fiscal 2025.

Fiscal 2026 Profit Improvement Plan
Unifi reported that it has implemented additional cost savings initiatives that include reducing variable manufacturing costs across labor, spend, and support functions, while also eliminating many salaried positions in the U.S. Along with a renewed focus on optimizing commercial execution, increasing margin accretive activities, and scrutinizing working capital, management expects this improvement plan to aid in generating positive operating cash flow in the quarters ahead.

Outlook
Unifi said it will focus on minimizing operational and capital expenditures throughout fiscal 2026. The second quarter of fiscal 2026 is expected to exhibit improved operating cash flows compared to the first quarter of fiscal 2026, driven by working capital reductions and lower spending across production activities.

Eddie Ingle, chief executive officer of Unifi, Inc., stated, “Looking ahead, our focus continues to remain on making the necessary changes to strengthen our business and position Unifi to capitalize on the investments we have made in new innovations and circular textile solutions. We expect to see the benefits of the cost and pricing actions in the near term. As a result, we will be in a better position to take advantage of any improvement in the current trade environment and return value to our shareholders over the long term.”

Image courtesy of Unifi Fortisyn: abrasion-resistant yarn engineered for military and tactical gear.