Unifi, Inc. reported improved profitability in the fiscal third quarter ended March 29 with the benefit of lower expenses and healthier gross margins. Sales fell 11.3 percent year over year, but increased 7.1 percent sequentially. Net sales decreased to $130.0 million from $146.6 million, primarily due to lower customer ordering patterns stemming from geopolitical, trade, and tariff-related uncertainty.

  • Revenues from Repreve fiber products were $38.2 million and represented 29 percent of net sales, compared to $34.3 million or 28 percent of net sales for the second quarter of fiscal 2026.

Gross profit increased to $9.1 million from $(0.4) million. Americas Segment gross profit increased by $10.6 million, primarily from the multi-year cost reduction efforts, partially offset by lower sales. Brazil Segment gross profit decreased by $0.2 million, primarily due to import pricing pressures. Asia Segment gross profit decreased by $0.8 million, primarily due to lower sales volumes.

Operating loss improved to $0.1 million from $13.9 million. The change was primarily due to higher gross profit, lower SG&A, and gain on foreign currency transaction. Net loss was $2.3 million compared to a net loss of $16.8 million.

Adjusted Net Loss was $3.8 million, which excludes $1.5 million in net gain on foreign currency transaction, compared to Adjusted Net Loss of $13.9 million.

Adjusted EBITDA was $4.0 million, which excludes the net foreign currency transaction, compared to $(4.9) million.

Eddie Ingle, chief executive officer of Unifi, Inc., stated, “We are pleased to report that the impact of our team’s hard work is beginning to translate into improved financial performance, highlighted by improved gross profit and debt reduction. These results were driven by the actions we have taken over the past several quarters to realign our cost structure and optimize our operations, and give us confidence that we can generate stronger profitability and cash flow from a lower revenue base moving forward. In addition, we remain focused on partnering with our global customers to deliver innovative solutions to address their evolving needs, which will serve us well in supporting sustainable, long-term market and business growth.”

Outlook
Unifi will continue to focus on leveraging its improved cost footprint while investing in innovation and strategically managing the balance sheet to ensure that the Company is better positioned to capitalize and grow as business conditions improve. Results for the fourth quarter of fiscal 2026 will include responsive price increases associated with petrochemical-related inflation.

Ingle concluded, “As we enter the fourth quarter and look towards the remainder of calendar year 2026, we are encouraged by the momentum we are seeing across our businesses. Our innovative beyond apparel business is continuing to gain traction, which should help support improved financial results. We also anticipate the need to support higher working capital levels to accommodate demand and petrochemical-related inflation. While the business is in a stronger position today than it has been in some time, we remain focused on driving sustained financial improvement and long-term shareholder value.”