Unifi Revenue Falls to $127.9 Million as Adjusted Loss Beats Estimates
Key Facts
Unifi reported an adjusted loss of $0.09 per share for the fiscal first quarter ended September 27, 2026, $0.06 below analysts’ estimate of a $0.15 per-share loss, according to Investing.com. Revenue, however, came in below expectations at $127.9 million, versus a consensus estimate of $138.14 million. Official results showed net sales fell to $127.9 million from $135.7 million in the year-earlier quarter. The company reported a net loss of $2.0 million, or $0.11 per share, compared with a loss of $11.4 million, or $0.62 per share, a year earlier. The figures put the adjusted-loss beat alongside continued sales declines, a narrower net loss and improved operating indicators.
Gross profit rose to $12.5 million, with the margin increasing to 9.8% in the first quarter of fiscal 2027, compared with $3.4 million and a 2.5% margin in the year-earlier period of fiscal 2026, according to the company’s statement published via Nasdaq. Chief Executive Eddie Ingle said the quarter’s results reflected continued benefits from measures taken to improve operating efficiency. He added that the higher gross profit highlighted improved earnings capacity in the business. Improved profit and margin accompanied lower sales, reflecting divergent paths for operating profitability and revenue during the period. The company remained in the red, though its net loss was far smaller than a year earlier.
The company attributed the decline in net sales mainly to softer customer demand patterns in the Americas and Asia segments amid geopolitical, trade and tariff-related uncertainty, partly offset by higher sales in Brazil. Revenue from REPREVE fiber products fell to $36.4 million from $39.3 million a year earlier, but remained 29% of net sales in both periods. In contrast, gross profit in the Americas segment increased by $6.4 million, which the company attributed mainly to multiyear cost-reduction efforts. Gross profit in the Brazil segment also rose by $2.5 million, supported by pricing and sales mix. The differences show that weaker demand in some markets coincided with improved profitability in the Americas and Brazil segments.
Cash flow from operating activities turned positive, reaching $3.7 million, after the company used $8.9 million in the year-earlier quarter, according to Unifi’s statement. The company said the first quarter was its fourth consecutive quarter of positive cash generation. Net debt was $64.8 million on September 27, compared with $67.4 million on June 28. On October 28, Unifi completed the sale of nonstrategic real estate assets for gross proceeds of $60 million. The proceeds enabled it to repay in full a $55.5 million term loan balance, according to the statement.
UFI shares closed at $6.36 on October 29, 2026, compared with a close of $5.66 in the previous session, according to EL7 data. The data provided did not include a documented range for the stock’s movement during the October 29 session. The company had announced that its first-quarter results call would be held on October 30, 2026, at 9:00 a.m. Eastern time, to provide comments on the results and other developments. In its fiscal 2027 outlook, Unifi said it expects sales and profitability to improve compared with fiscal 2026. It linked the outlook to the full-year impact of portfolio management, cost containment and improved operational execution measures.
The company said the Asia segment would remain under pressure because of regional weakness and geopolitical volatility. For the second quarter, it expects cost savings and stable demand to support the Americas segment. It also expects sales and profitability in Brazil to remain near the year-earlier period. The company said raw-material price inflation would weigh negatively on working capital. The outlook combines continued regional pressures and mixed segment performance, while the company is counting on cost-control measures and improved execution to have an impact during the rest of the fiscal year.