Unifi Inc
UFI
$3.13 -4.86%
Exchange: NYSE | Sector: Consumer Cyclical | Industry: Apparel Manufacturers
Q1 2025
Published: Nov 6, 2024

Earnings Highlights

  • Revenue of $147.37M up 6.1% year-over-year
  • EPS of $-0.42 increased by 42.5% from previous year
  • Gross margin of 6.4%
  • Net income of -7.63M
  • "We're very pleased with the progress we've made so far on some of the cost savings initiatives and some of the sales transformation. ... we are halfway through many of those efforts." - A.J. Eaker
UFI
Company UFI

Executive Summary

Unifi Inc reported QQ1 2025 net sales of $147.4 million, up 6% year over year but down 6% versus the prior quarter, with gross margin of 6.4% and an operating loss of $3.22 million. Net income was negative $7.63 million, driven by the early-stage ramp in Underlying costs and a challenging margin mix as the company accelerates an operational turnaround. EBITDA totaled $3.60 million, reflecting selective cost containment and volume-driven improvements in SG&A, yet the quarter ended with a negative free cash flow of $14.85 million and a cash balance of $13.7 million. The Brazil segment was the standout performer, delivering a 23% gross margin in Q1, while Asia faced ongoing headwinds from Chinese macro softness and pricing pressure. Management emphasized four growth pillars: 1) REPREVE fiber innovations (Takeback and ThermaLoop), 2) Beyond Apparel expansion (home/carpet, military, packaging, resin offerings), 3) Brazil capacity expansion ( EvoCooler-related capacity gains), and 4) North America cost reductions to lift profitability in H2 FY2025. Management also highlighted a hedge in liquidity via a new $25 million facility (terms through 2027) to support reinvestment in growth initiatives. The company maintains a FY2025 top-line growth target of ~10% and expects a meaningful improvement in gross profit and EBITDA, albeit with near-term quarterly volatility.

Key Performance Indicators

Revenue
Increasing
147.37M
QoQ: -6.40% | YoY: 6.14%
Gross Profit
Increasing
9.46M
6.42% margin
QoQ: -12.35% | YoY: 1 744.87%
Operating Income
Increasing
-3.22M
QoQ: -320.94% | YoY: 73.26%
Net Income
Increasing
-7.63M
QoQ: -91.57% | YoY: 42.49%
EPS
Increasing
-0.42
QoQ: -90.91% | YoY: 42.47%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 135.67 -0.62 -13.8% View
Q3 2025 146.56 -0.92 -1.6% View
Q2 2025 138.88 -0.62 +1.4% View
Q1 2025 147.37 -0.42 +6.1% View