Demand trends among apparel manufacturers continue to impact near-term operating performance
GREENSBORO, NC, January 19, 2023—(BUSINESS WIRE)–Unifi, Inc. (NYSE: UFI) (together with its consolidated subsidiaries, “UNIFI”), makers of REPREVE and one of the world’s leading innovators in recycled and synthetic yarns, today announced preliminary results for its fiscal second quarter ended January 1, 2023. and has scheduled an earnings conference call for the second quarter of 2023.
For the second quarter of fiscal year 2023, UNIFI expects:
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Net sales between $135 million and $137 million, a decrease of approximately 24% to 25% from the first quarter of fiscal 2023, compared to prior expectations of a 10% to 15% decrease;
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Negative gross margin between (5.5%) and (6.5%);
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Operating loss between $19.0 million and $21.0 million;
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Loss before income taxes between $20.0 million and $22.0 million; and
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Adjusted EBITDA between $(12.0) million and $(14.0) million, compared to prior expectations of between $0.0 million and $(5.0) million.
Eddie Ingle, Chief Executive Officer of UNIFI, said: “Our business continued to face a difficult operating environment in the second fiscal quarter, and our results for the period reflected continued demand disruption from destocking and slower global apparel production, which impacted by, among other things, the impact of COVID-19 in China. This weaker-than-expected demand is prevailing among our apparel customers as they work to normalize their supply chains and seek to reduce excess inventory. In response to these temporary challenges, we have implemented numerous cost controls, and other savings measures are underway. In addition, we are taking advantage of the additional liquidity provided by our credit facility, which we previously announced was amended, extended and extended on October 28, 2022.”
Ingle continued, “As we look forward, the mid- and long-term drivers of our business remain intact. We expect to see improvements in volumes and operational performance as we progress through calendar year 2023 and as customer ordering patterns begin to normalize. We should also experience improved performance and efficiencies across the business as a result of the various cost-saving measures currently in place, along with stabilized input costs. Our global business model and long-term demand for sustainable solutions remain unchanged.”
The preliminary, unaudited information contained herein remains subject to confirmation and finalization based on UNIFI’s quarter-end closing procedures, including the execution of internal controls over financial reporting and the subsequent occurrence or identification of events prior to the official issuance of quarterly financial statements.
UNIFI is planning an earnings conference call for the second quarter of fiscal 2023
UNIFI will hold a conference call at 8:30 a.m. ET on Thursday, February 2, 2023, to discuss financial results for the second quarter of 2023. Financial results and accompanying materials for the second quarter of fiscal 2023 will be available after the close of market trading on Wednesday, February 1, 2023, on UNIFI’s website at http://investor.unifi.com. The conference call can be accessed approximately 10 minutes prior to the start of the call by dialing (800) 715-9871 (domestic) or (646) 307-1963 (international) and, when prompted, entering the conference ID number 1094008. There will also be live audio webcast of the call, which can be accessed on UNIFI’s website at http://investor.unifi.com. A replay of the conference call will be available approximately two hours after the call until Thursday, February 9, 2023, and may be accessed through UNIFI’s website at http://investor.unifi.com. In addition, the presentation slides will be available on the UNIFI website for 12 months after the call.
About UNIFA
Unifi, Inc. (NYSE: UFI) is a global provider of textile solutions and one of the world’s leading innovators in the production of synthetic and recycled fibers. Through REPREVE, one of UNIFI’s proprietary technologies and a global leader in branded recycled fibers, UNIFI has transformed more than 35 billion plastic bottles into recycled fibers for new clothing, footwear, home goods and other consumer products. UNIFI is constantly innovating technologies to meet consumer needs in moisture management, thermal regulation, antimicrobial protection, UV protection, stretchability, water resistance and improved softness. UNIFI cooperates with many of the world’s most influential brands in sportswear, fashion, household, automotive and other industries. For more information about UNIFI, visit www.unifi.com.
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