Unifi Inc. said it experienced its first loss in more than two years in the quarter ended Dec. 25 as the apparel supply chain worked off existing inventory rather than order synthetic yarns from its factories in Brazil, Central America and the United States. However, executives said the company’s forward order book has grown nicely since the holiday, indicating fabric makers have worked off much of their inventory even if retailers have not.
“The destocking impact may have not worked all the way through the supply chain, but it has certainly worked back to us,” said Ron Smith, VP and CFO for Unifi. “We're back to running levels kind of where we were last year, which is very strong.”
Net sales at the company, a popular source of recycled polyester fiber among outdoor and athletic performance brands, increased 3 percent to $167 million in the company’s fiscal second quarter. Unifi said higher prices and raw material inflation offset a 9 percent decline in unit volume.
Net loss for the quarter reached $7.6 million, or 38 cents per share, compared to net income of $5.4 million, or 27 cents per share for year earlier quarter. The net loss for the first half of fiscal 2012 was $7.3 million, or 36 cents per share, compared to net income of $15.6 million, or 78 cents per share, for the prior year period.
