UNIFI INC
For the period ended Mar 30, 2025. Filed May 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 30, 2025 · Filed May 7, 2025
UFI$5.81-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-29; filed 2025-02-06.
0000950170-25-015046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-30; filed 2025-05-07.
0000950170-25-065060
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 201 previous paragraphs and 210 current paragraphs.
129 unchanged; 57 reworded; 21 added; 10 removed; 5 previous and 3 current paragraphs rearranged.
Tables are not compared: 31 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
A tariff structure that disproportionately impacts one country or region over another may result in a shift in manufacturing or flow of goods particularly as it relates to textile production across Asia and Central America. Such lower tariff countries or regions may be situated outside of UNIFI’s existing global supply chain. If UNIFI is unable to move production based on these shifts in regional demand, we may lose sales and experience an adverse effect on our financial condition, results of operations, or cash flows. UNIFI will continue to monitor these and other aspects of the current environment, leverage our global business model as necessary, and work closely with stakeholders to ensure business continuity and liquidity.
Current report
Fortunately, UNIFI has been expanding its supply chain and business model across multiple geographies over the last several years. Particularly, (i) our feedstock supply spans multiple markets, (ii) our commercial position in the Central American market remains key to servicing compliant business for USMCA and CAFTA-DR programs, and (iii) we have expanded our asset light model beyond China. Each of these concepts affords us diversity in this dynamic trade environment and greater flexibility in servicing our customer base.
Current report
In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations, including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations.
Current report
In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses in the U.S.
Current report
Gross (Loss) Profit
Current report
For the Americas Segment, gross profit decreased primarily due to decreased productivity related to the consolidation of yarn manufacturing operations.
Current report
The current period and the prior period reflect no material activity.
Current report
On February 3, 2025, UNIFI announced the closing of its Madison, North Carolina facility and the transition of those manufacturing operations to other UNIFI production facilities in North and Central America. As a result, UNIFI incurred restructuring costs of $1,320 in the current period which consisted of (i) equipment relocation and facility closure costs of $1,088 and (ii) employee separation or retention costs of $232.
Current report
The decrease in Segment (Loss) Profit for the Americas Segment from the prior period to the current period was primarily attributable to decreased productivity related to the consolidation of yarn manufacturing operations.
Current report
In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations.
Current report
In the second quarter of fiscal 2024, UNIFI incurred severance costs of $2,351 in connection with the Profitability Improvement Plan in the U.S. and a loss of $2,750 related to the dissolution of a nylon joint venture.
Current report
In the third quarter of fiscal 2025, UNIFI incurred various transition costs totaling $2,900 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs of $1,088, (ii) inventory write-downs of $1,000, (iii) excess manufacturing costs of $580, and (iv) employee separation or retention costs of $232. The facility closure, equipment relocation, employee separation and retention costs were all recorded within Restructuring costs and the inventory write-downs and excess manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses in the U.S.
Current report
In the second quarter of fiscal 2024, UNIFI incurred severance costs of $2,351 in connection with the Profitability Improvement Plan in the U.S. and a loss of $2,750 related to the dissolution of a nylon joint venture.
Current report
(Benefit) Provision for Bad Debts
Current report
Other Operating Expense, Net
Current report
There was no material activity for the current nine-month period or the prior nine-month period.
Current report
The components of Segment Profit, each component as a percentage of net sales, and the percentage increase or decrease over the prior nine-month period amounts for the Brazil Segment, were as follows:
Current report
The components of Segment Profit, each component as a percentage of net sales, and the percentage increase or decrease over the prior nine-month period amounts for the Asia Segment, were as follows:
Current report
Subsequent to quarter-end, on April 10, 2025, UNIFI entered into a Real Estate Purchase and Sale Agreement ("the Purchase Agreement") related to the sale of its Madison, North Carolina facility, as well as certain machinery and equipment located thereon, for a cash purchase price of $53,200. The closing of the transaction is expected to occur on May 15, 2025, unless accelerated by Buyer pursuant to the terms of the Purchase Agreement. The net proceeds of the transaction will be used to repay a portion of the principal balance of term loans and revolving loans outstanding under the 2022 Credit Agreement.
Current report
For the current nine-month period, the increases in accounts receivable and inventories were largely driven by the improvement in sales and timing of cash receipts. The increase in accounts payable and other current liabilities was largely due to increased accruals for employee compensation.
Current report
For the prior nine-month period, the decrease in inventories was primarily due to lower weighted average costs. The decrease in accounts receivable was largely driven by the decrease in sales and timing of cash receipts. The increase in accounts payable and other current liabilities was largely due to the liabilities recorded for severance and employee compensation.
Removed paragraphs (10)
Previous report
For the Americas Segment, gross profit was flat primarily due to higher sales volumes and conversion margins, which were mostly offset by inflationary pressures.
Previous report
Other Operating (Income) Expense, Net
Previous report
Segment Loss for the Americas Segment was relatively unchanged from the prior period to the current period as higher conversion margins were offset by inflationary pressures.
Previous report
Gross Profit
Previous report
Provision for Bad Debts
Previous report
Gain on Sale of Assets
Previous report
There was no material activity for the current six-month period or the prior six-month period.
Previous report
The components of Segment Profit, each component as a percentage of net sales, and the percentage increase or decrease over the prior six-month period amounts for the Brazil Segment, were as follows:
Previous report
The components of Segment Profit, each component as a percentage of net sales, and the percentage increase or decrease over the prior six-month period amounts for the Asia Segment, were as follows:
Previous report
no amounts had been borrowed against the 2024 Facility as of December 29, 2024;
Reworded paragraphs (57)
Previous wording
The following is management’s discussion and analysis of certain significant factors that have affected UNIFI’s operations, along with material changes in financial condition, during the periods included in the accompanying condensed consolidated financial statements. A reference to a “note” in this section refers to the accompanying notes to condensed consolidated financial statements. A reference to the “current period” refers to the three-month period ended December 29, 2024, while a reference to the “prior period” refers to the three-month period ended December 31, 2023. A reference to the “current six-month period” refers to the six-month period ended December 29, 2024, while a reference to the “prior six-month period” refers to the six-month period ended December 31, 2023. Such references may be accompanied by certain phrases for added clarity. The current period and the prior period each consisted of 13 weeks. The current six-month period and the prior six-month period each consisted of 26 weeks.
Current wording
The following is management’s discussion and analysis of certain significant factors that have affected UNIFI’s operations, along with material changes in financial condition, during the periods included in the accompanying condensed consolidated financial statements. A reference to a “note” in this section refers to the accompanying notes to condensed consolidated financial statements. A reference to the “current period” refers to the three-month period ended March 30, 2025, while a reference to the “prior period” refers to the three-month period ended March 31, 2024. A reference to the “current nine-month period” refers to the nine-month period ended March 30, 2025, while a reference to the “prior nine-month period” refers to the nine-month period ended March 31, 2024. Such references may be accompanied by certain phrases for added clarity. The current period and the prior period each consisted of 13 weeks. The current nine-month period and the prior nine-month period each consisted of 39 weeks.
Previous wording
The challenging environment for textile production and demand has adversely impacted our consolidated sales and profitability. In addition, the following pressures have been present or recently introduced: (i) the impact of inflation on consumer spending, (ii) elevated interest rates for consumers and customers, including the impact on the carrying costs of customer inventories, and (iii) the volatility of trade and regulatory matters in light of recent executive and legislative branch changes. UNIFI will continue to monitor these and other aspects of the current environment, leverage our global business model as necessary, and work closely with stakeholders to ensure business continuity and liquidity.
Current wording
The challenging environment for textile production and demand has adversely impacted our consolidated sales and profitability. In addition, the following pressures have been present or recently introduced: (i) the impact of inflation on consumer spending, (ii) elevated interest rates for consumers and customers, including the impact on the carrying costs of customer inventories, (iii) the volatility of trade and regulatory matters in light of recent executive and legislative branch changes and (iv) the uncertainty over global trade policies and the financial impact of related tariffs and retaliatory tariffs.
Previous wording
While we recognize the disruption to global markets and supply chains caused by the conflicts in Ukraine and the Middle East, we have not been directly impacted. Indirectly, we recognize that additional or prolonged impacts to the petroleum or other global markets could cause further inflationary pressures to our global raw material costs or additional unforeseen adverse impacts.
Current wording
Specific to other ongoing geopolitical tensions, we recognize the disruption to global markets and supply chains caused by the conflicts in Ukraine and the Middle East, and we have not been impacted. Indirectly, we recognize that additional or prolonged impacts to the petroleum or other global markets could cause further inflationary pressures to our global raw material costs or additional unforeseen adverse impacts.
Previous wording
Despite lowered input and freight costs and a marginally more stable labor pool recently, global demand volatility and uncertainty continued into fiscal 2025. The threat of recession and global tensions continue to create uncertainty. Such existing challenges and future uncertainty, particularly for rising input costs, labor productivity, and global demand, could worsen and/or continue for prolonged periods, materially impacting our consolidated sales, gross profit, and operating cash flows. Also, the need for future selling price adjustments in connection with inflationary costs could impact our ability to retain current customer programs and compete successfully for new programs in certain regions.
Current wording
Despite lower input and freight costs and a marginally more stable labor pool recently, global demand volatility and uncertainty continued into fiscal 2025. The threat of recession and global tensions continue to create uncertainty. Such existing challenges and future uncertainty, particularly for rising input costs, labor productivity, and global demand, could worsen and/or continue for prolonged periods, materially impacting our consolidated sales, gross profit, and operating cash flows. Also, the need for future selling price adjustments in connection with inflationary costs could impact our ability to retain current customer programs and compete successfully for new programs in certain regions.
Previous wording
Consolidated net sales for the current period increased by $1,963, or 1.4%, and consolidated sales volumes increased by 6.2%, compared to the prior period. Net sales in the current period were higher primarily due to improved sales volumes in each of the reportable segments, along with favorable pricing and market share gains in Brazil, mainly offset by a weaker sales mix in Asia. Despite these sales volume improvements, volumes remain depressed, particularly in the Americas and Asia Segments as a result of continued weak global demand.
Current wording
Consolidated net sales for the current period decreased by $2,439, or 1.6%, and consolidated sales volumes decreased by 0.9%, compared to the prior period. Net sales in the current period were lower primarily due to lower sales volumes and a weaker sales mix in Asia, partially offset by improved sales volumes in the Americas Segment, along with favorable pricing and market share gains in Brazil. Despite these sales volume improvements, volumes remain depressed, particularly in the Americas and Asia Segments as a result of continued weak global demand.
Previous wording
Consolidated weighted average sales prices decreased 4.8% which partially offset the volume increase. The decrease in sales prices was primarily attributable to a weaker sales mix in the Asia Segment, together with unfavorable foreign currency translation effects from the weakening of the BRL versus the USD within our Brazil Segment.
Current wording
Consolidated weighted average sales prices decreased 0.7%. The decrease in sales prices was primarily attributable to a weaker sales mix in the Asia Segment, together with unfavorable foreign currency translation effects from the weakening of the BRL versus the USD within our Brazil Segment.
Previous wording
REPREVE® Fiber products for the current period comprised 31%, or $43,272, of consolidated net sales, compared to 33%, or $45,725, for the prior period.
Current wording
REPREVE® Fiber products for the current period comprised 31%, or $44,699, of consolidated net sales, compared to 31%, or $46,754, for the prior period.
Previous wording
Gross profit for the current period decreased to $534 from $1,636 in the prior period. Gross profit decreased primarily due to softer sales and profitability in the Asia Segment. This was partially offset by (i) increased sales volumes, (ii) improved productivity, and (iii) higher conversion margins in the Brazil Segment. However, gross profit continues to be unfavorably impacted by weak fixed cost absorption in the Americas Segment, where utilization and productivity remain below historical averages due to depressed demand.
Current wording
Gross profit for the current period decreased by $5,209 compared to the prior period. Gross profit decreased primarily due to (i) lower conversion margins in the Americas Segment and (ii) softer sales and profitability in the Asia Segment. These were partially offset by (a) increased sales volumes and (b) improved productivity. However, gross profit continues to be unfavorably impacted by weak fixed cost absorption in the Americas Segment, where utilization and productivity remain below historical averages. Ongoing cost savings measures led to UNIFI announcing the consolidation of yarn manufacturing operations in the Americas Segment with the planned closure of the Madison, North Carolina facility. UNIFI incurred $1,580 of transition costs during the period, recorded in Cost of sales, related to (i) inventory write-downs of $1,000 and (ii) excess manufacturing costs of $580.
Previous wording
For the Brazil Segment, gross profit increased primarily due to higher sales volumes from market share gains partially offset by an unfavorable foreign currency translation impact.
Current wording
For the Brazil Segment, gross profit decreased primarily due to (i) an unfavorable foreign currency translation impact and (ii) lower conversion margins.
Previous wording
Equity in Loss (Earnings) of Unconsolidated Affiliates
Current wording
Equity in Loss of Unconsolidated Affiliates
Previous wording
The decrease in the effective tax rate from the prior period to the current period is primarily attributable to fewer losses in the U.S. and a discrete benefit from the release of interest and penalties accrued on uncertain tax positions after the close of the IRS audit in the prior period.
Current wording
The increase in the effective tax rate from the prior period to the current period is primarily attributable to lower foreign earnings and higher losses in the U.S.
Previous wording
The improvement in net loss was primarily attributable to (i) a gain on sale of assets, (ii) no restructuring costs in the current period, (iii) lower bad debt expense and (iv) foreign currency translation gains, partially offset by (a) lower gross profit and (b) higher income tax expense.
Current wording
The decrease in net loss was primarily attributable to (i) lower gross profit and (ii) restructuring costs in the current period, partially offset by (a) lower bad debt expense and (b) lower income tax expense.
Previous wording
Adjusted EBITDA and Adjusted EPS were generally consistent with the prior period as the lower gross profit was mostly offset by (a) lower bad debt expense and (b) foreign currency translation gains.
Current wording
Adjusted EBITDA and Adjusted EPS were lower compared to the prior period primarily due to lower gross profit, partially offset by lower bad debt expense.
Previous wording
The components of Segment Loss, each component as a percentage of net sales, and the percentage increase or decrease over the prior period amounts for the Americas Segment, were as follows:
Current wording
The components of Segment (Loss) Profit, each component as a percentage of net sales, and the percentage increase or decrease over the prior period amounts for the Americas Segment, were as follows:
Previous wording
The increase in net sales for the Americas Segment from the prior period to the current period was primarily attributable to higher sales volumes. Both periods were unfavorably impacted by the continued weak global textile demand environment.
Current wording
The increase in net sales for the Americas Segment from the prior period to the current period was primarily attributable to higher sales volumes and ongoing growth in the Central America business. Both periods were unfavorably impacted by the continued weak global textile demand environment.
Previous wording
The increase in net sales for the Brazil Segment from the prior period to the current period was primarily attributable to (i) higher average selling prices due to increasing raw material costs and (ii) an improvement in sales volumes from market share gains, partially offset by unfavorable foreign currency translation effects from the weakening of the BRL versus the USD.
Current wording
The decrease in net sales for the Brazil Segment from the prior period to the current period was primarily attributable to unfavorable foreign currency translation effects from the weakening of the BRL versus the USD, partially offset by higher average selling prices due to increasing raw material costs.
Previous wording
The increase in Segment Profit for the Brazil Segment from the prior period to the current period was primarily attributable to (i) improved underlying margins from higher selling prices and (ii) an increase in sales volumes as discussed above, partially offset by unfavorable foreign currency translation effects. We continue to prioritize innovation and differentiation to improve our portfolio and competitive position in Brazil.
Current wording
The decrease in Segment Profit for the Brazil Segment from the prior period to the current period was primarily attributable to (i) unfavorable foreign currency translation effects and (ii) lower conversion margins. We continue to prioritize innovation and differentiation to improve our portfolio and competitive position in Brazil.
Previous wording
The decrease in net sales for the Asia Segment from the prior period to the current period was primarily attributable to the changes in sales volumes related to customer-specific programs, which were partially offset by an overall improvement in sales volumes compared to the prior period despite continued weak global demand, particularly for apparel.
Current wording
The decrease in net sales for the Asia Segment from the prior period to the current period was primarily attributable to the changes in sales volumes related to customer-specific programs due to continued weak global demand, particularly for apparel.
Previous wording
The decrease in Segment Profit for the Asia Segment from the prior period to the current period was attributable to a decline in gross margin rate associated with a change in sales mix of REPREVE products, partially offset by the overall increase in sales volumes.
Current wording
The decrease in Segment Profit for the Asia Segment from the prior period to the current period was primarily attributable to (i) a lower gross margin rate associated with a change in sales mix of REPREVE products and (ii) a decline in sales volumes.
Previous wording
Six Months Ended December 29, 2024 Compared to Six Months Ended December 31, 2023
Current wording
Nine Months Ended March 30, 2025 Compared to Nine Months Ended March 31, 2024
Previous wording
the components of net loss and the percentage increase or decrease over the prior six-month period amounts, and
Current wording
the components of net loss and the percentage increase or decrease over the prior nine-month period amounts, and
Previous wording
The tables below set forth reconciliations of (i) Loss before income taxes (“Pre-tax Loss”), (ii) Provision (benefit) for income taxes (“Tax Impact”), (iii) Net Loss to Adjusted Net Loss, and (iv) Diluted EPS to Adjusted EPS.
Current wording
The tables below set forth reconciliations of (i) Loss before income taxes (“Pre-tax Loss”), (ii) Provision for income taxes (“Tax Impact”), (iii) Net Loss to Adjusted Net Loss, and (iv) Diluted EPS to Adjusted EPS.
Previous wording
Consolidated net sales for the current six-month period increased by $10,491, or 3.8%, and consolidated sales volumes increased 6.9%, compared to the prior six-month period. Net sales in the current six-month period were higher primarily due to improved sales volumes in each of the reportable segments, along with favorable pricing in Brazil. Despite these sales volume improvements, volumes remain depressed, particularly in the Americas and Asia Segments as a result of continued weak global demand.
Current wording
Consolidated net sales for the current nine-month period increased by $8,052, or 1.9%, and consolidated sales volumes increased 4.2%, compared to the prior nine-month period. Net sales in the current nine-month period were higher primarily due to improved sales volumes in each of the reportable segments, along with favorable pricing in Brazil. Despite some volume improvements, overall sales remain depressed, particularly in the Americas and Asia Segments as a result of continued weak global demand.
Previous wording
Consolidated weighted average sales prices decreased 3.1% which partially offset the volume increase. The decrease in sales prices was primarily attributable to sales mix and lower average selling prices in Asia and the Americas Segment, together with unfavorable foreign currency translation effects from the weakening of the BRL versus the USD within our Brazil Segment.
Current wording
Consolidated weighted average sales prices decreased 2.3% which partially offset the volume increase. The decrease in sales prices was primarily attributable to sales mix and lower average selling prices in the Asia and Americas Segments, together with unfavorable foreign currency translation effects from the weakening of the BRL versus the USD within our Brazil Segment.
Previous wording
REPREVE® Fiber products for the current six-month period comprised 31%, or $88,014, of consolidated net sales, compared to 32%, or $88,186, for the prior six-month period.
Current wording
REPREVE® Fiber products for the current nine-month period comprised 31%, or $132,713, of consolidated net sales, compared to 32%, or $134,940, for the prior nine-month period.
Previous wording
Gross profit for the current six-month period increased to $9,992 from $1,061 in the prior six-month period. Gross profit increased primarily due to (i) increased sales volumes, (ii) variable cost saving initiatives, (iii) improved productivity, and (iv) higher conversion margins. However, gross profit continues to be unfavorably impacted by weak fixed cost absorption in the Americas Segment, where utilization and productivity remain below historical averages due to depressed demand.
Current wording
Gross profit for the current nine-month period increased to $9,547 from $5,825 in the prior nine-month period. Gross profit increased primarily due to (i) increased sales volumes, (ii) variable cost saving initiatives, (iii) improved productivity in certain manufacturing areas, and (iv) higher conversion margins. However, gross profit continues to be unfavorably impacted by weak manufacturing fixed cost absorption in the Americas Segment, where utilization and productivity remain below historical averages. Ongoing cost savings measures led to UNIFI announcing the consolidation of yarn manufacturing operations in the Americas Segment with the planned closure of the Madison, North Carolina facility. UNIFI incurred $1,580 of transition costs during the period, recorded in Cost of sales, related to (i) inventory write-downs of $1,000, and (ii) excess manufacturing costs of $580.
Previous wording
SG&A did not change meaningfully from the prior six-month period to the current six-month period, nor did the change include any significant offsetting impacts.
Current wording
SG&A did not change meaningfully from the prior nine-month period to the current nine-month period, nor did the change include any significant offsetting impacts.
Previous wording
The current period benefit reflects no material activity, while the prior period provision reflected an increase for a specifically identified customer balance originating in the U.S. fiber market.
Current wording
The current nine-month period benefit reflects no material activity, while the prior nine-month period provision reflected an increase for a specifically identified customer balance originating in the U.S. fiber market.
Previous wording
Restructuring costs for the prior period consisted of (i) a loss of $2,750 for the dissolution of a nylon joint venture and (ii) severance charges of $2,351 in connection with the Profitability Improvement Plan in the U.S.
Current wording
On February 3, 2025, UNIFI announced the closing of its Madison, North Carolina facility and the transition of those manufacturing operations to other UNIFI production facilities in North and Central America. As a result, UNIFI incurred restructuring costs of $1,320 in the current period which consisted of (i) equipment relocation and facility closure costs of $1,088 and (ii) employee separation or retention costs of $232. Restructuring costs for the prior nine-month period consisted of (i) a loss of $2,750 for the dissolution of a nylon joint venture and (ii) severance charges of $2,351 in connection with the Profitability Improvement Plan in the U.S.
Previous wording
Other operating expense, net for the current six-month period and the prior six-month period include foreign currency transaction losses of $268 and $430, respectively, with no other meaningful activity.
Current wording
Other operating expense, net for the current nine-month period and the prior nine-month period include foreign currency transaction losses of $218 and $395, respectively, with no other meaningful activity.
Previous wording
Interest expense, net increased primarily due to lower interest income in the current six-month period, associated with lower global cash balances.
Current wording
Interest expense, net increased primarily due to lower interest income in the current nine-month period, associated with lower global cash balances.
Previous wording
Equity in Loss (Earnings) of Unconsolidated Affiliates
Current wording
Equity in Loss of Unconsolidated Affiliates
Previous wording
Provision (benefit) for income taxes and the effective tax rate were as follows:
Current wording
Provision for income taxes and the effective tax rate were as follows:
Previous wording
The decrease in the effective tax rate from the prior six-month period to the current six-month period is primarily attributable to less losses in the U.S. in the current six-month period, as well as a decrease in valuation allowances on deferred tax asset balances adjusted in response to the IRS audit of tax years 2014 through 2019, which was concluded during the prior six-month period.
Current wording
The decrease in the effective tax rate from the prior nine-month period to the current nine-month period is primarily attributable to (i) lower losses in the U.S. and lower foreign earnings in the current nine-month period, as well as (ii) a decrease in valuation allowances and release of interest and penalty reserves for uncertain tax benefits as a result of concluding an IRS audit during the prior nine-month period.
Previous wording
The improvement in net loss was primarily attributable to (i) increased gross profit, (ii) lower bad debt expense, (iii) a gain on sale of assets, and (iv) no restructuring costs in the current period, partially offset by (a) higher interest expense, net, (b) higher income tax expense, (c) higher SG&A costs, and (d) lower earnings from unconsolidated affiliates.
Current wording
The improvement in net loss was primarily attributable to (i) increased gross profit, (ii) lower bad debt expense, (iii) a gain on sale of assets, and (iv) lower restructuring costs in the current nine-month period compared to the prior nine-month period, partially offset by (a) higher interest expense, net, and (b) higher income tax expense.
Previous wording
Adjusted EBITDA and Adjusted EPS increased primarily due to (i) higher gross profit and (ii) lower bad debt expense, partially offset by (a) higher SG&A costs and (b) lower earnings from unconsolidated affiliates.
Current wording
Adjusted EBITDA and Adjusted EPS increased primarily due to (i) higher gross profit and (ii) lower bad debt expense.
Previous wording
Following is a discussion and analysis of the revenue and profitability performance of UNIFI’s reportable segments for the current six-month period.
Current wording
Following is a discussion and analysis of the revenue and profitability performance of UNIFI’s reportable segments for the current nine-month period.
Previous wording
The components of Segment Profit (Loss), each component as a percentage of net sales, and the percentage increase or decrease over the prior six-month period amounts for the Americas Segment, were as follows:
Current wording
The components of Segment Profit (Loss), each component as a percentage of net sales, and the percentage increase or decrease over the prior nine-month period amounts for the Americas Segment, were as follows:
Previous wording
The increase in net sales for the Americas Segment from the prior six-month period to the current six-month period was primarily attributable to higher sales volumes, partially offset by a lower-priced sales mix. Both periods were unfavorably impacted by the continued weak global textile demand environment.
Current wording
The increase in net sales for the Americas Segment from the prior nine-month period to the current nine-month period was primarily attributable to higher sales volumes, partially offset by a lower-priced sales mix. Both periods were unfavorably impacted by the continued weak global textile demand environment.
Previous wording
The increase in Segment Profit for the Americas Segment from the prior six-month period to the current six-month period was primarily attributable to higher margins due to improved variable cost management efforts. Segment Profit for the Americas Segment continues to be negatively impacted by a lower proportion of fiber sales volumes. As fiber products carry a higher selling price and allocation of production costs versus Chip and Flake, lower fiber production drives weaker fixed cost absorption and adversely impacts gross profit and gross margin.
Current wording
The increase in Segment Profit for the Americas Segment from the prior nine-month period to the current nine-month period was primarily attributable to higher margins due to improved variable cost management efforts, partially offset by weak manufacturing fixed cost absorption and decreased productivity related to the consolidation of yarn manufacturing operations. Ongoing cost savings measures led to UNIFI announcing the consolidation of yarn manufacturing operations in the Americas Segment with the planned closure of the Madison, North Carolina facility. UNIFI incurred $1,580 of transition costs during the period, recorded in Cost of sales, related to (i) inventory write-downs of $1,000 and (ii) excess manufacturing costs of $580. Additionally, Segment Profit for the Americas Segment continues to be negatively impacted by a lower proportion of fiber sales volumes which are below historical averages due to depressed demand. As fiber products carry a higher selling price and allocation of production costs versus Chip and Flake, lower fiber production drives weaker fixed cost absorption and adversely impacts gross profit and gross margin.
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
There was no material activity for the current period or the prior period.
Current report — wording carried from elsewhere
In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina.
Current report — wording carried from elsewhere
In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
The current period and the prior period include foreign currency transaction (gains) losses of $(221) and $464, respectively, with no other meaningful activity.
Previous report — wording carried elsewhere
In the second quarter of fiscal 2025, UNIFI recorded a gain of $4,296 related to the sale of a warehouse located in Yadkinville, North Carolina. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses and capital losses in the U.S.
Previous report — wording carried elsewhere
The current six-month period provision reflects no material activity, while the prior six-month period provision reflected an increase for a specifically identified customer balance originating in the U.S. fiber market.
Previous report — wording carried elsewhere
Restructuring costs for the prior six-month period consisted of (i) a loss of $2,750 for the dissolution of a nylon joint venture and (ii) severance charges of $2,351 in connection with the Profitability Improvement Plan in the U.S.
Previous report — wording carried elsewhere
On January 2, 2025, UNIFI borrowed $22,000 against the 2024 Facility and used the proceeds to reduce the outstanding ABL Revolver balance. There was no impact to debt principal from these transactions.