Unifi Sees Healthy Sequential Improvement In Q3 Results

Unifi, Inc. announced preliminary results for its fiscal third fiscal quarter ended April 2, showing sequential improvement in sales and earnings over its fiscal second quarter.

For the third quarter of fiscal 2023, Unifi expects the following results compared to the immediately preceding second quarter of fiscal 2023:

• Net sales between $155 million and $157 million, a sequential-quarter increase of 14 percent to 15 percent;
• Gross profit between $9 million and $10 million, a sequential-quarter improvement from a gross loss of $8 million;
• Operating loss between $2 million and $3 million, a sequential-quarter improvement of $17 million to $18 million; and
• Adjusted EBITDA between $4 million and $5 million, a sequential-quarter improvement of $17 million to $18 million.

When releasing second-quarter results, Unifi predicted revenue to increase sequentially and sequential operating performance improvement but did not quantify the improvement.

Eddie Ingle, CEO of Unifi, said, “We are very pleased with our sales and profitability results in the third fiscal quarter, which demonstrates significant sequential recovery in our financial metrics and underlying business momentum. While the demand environment remains subdued, our diligence around labor efficiency, working capital management, liquidity resources, and tactical execution have allowed us to capitalize on some of the initial normalizations of apparel production that has occurred thus far in calendar 2023.”

Ingle concluded, “Repreve consistently garners interest from premier brands and retailers, as customer programs and development activities resonate with industry leaders. We expect to continue experiencing improvements in volumes and operating performance as we move through calendar 2023 and customer ordering patterns further stabilize. Our liquidity position and our credit facility, which was amended, expanded and extended in October 2022, continue to provide significant maneuverability for the current operating environment and our mid- and long-term strategic growth initiatives. We ended the third quarter of fiscal 2023 with approximately $50 million in cash, net debt of $86 million, and over $45 million of available borrowings under the credit facility.”