Unifi Q1 revenue falls as Americas and Asia demand weakens
Unifi Q1 revenue falls as Americas and Asia demand weakens
Overview
U.S. recycled yarn maker's fiscal Q1 revenue fell yr/yr on weak Americas and Asia demand
Gross profit and margin rose sharply, driven by cost reductions and favorable Brazil pricing
Company completed $60 mln asset sale to pay off $55.5 mln term loan
Outlook
Unifi expects fiscal 2027 sales and profitability to improve from fiscal 2026
Company expects Americas Segment to benefit from cost savings and stable demand in Q2 fiscal 2027
Unifi says Asia Segment will remain pressured by regional softness and geopolitical volatility in Q2 fiscal 2027
Result Drivers
AMERICAS AND ASIA DEMAND - Co said lower net sales were mainly due to tepid customer ordering patterns in Americas and Asia segments amid geopolitical, trade and tariff uncertainty
COST REDUCTIONS - Gross profit increase in Americas segment was mainly attributed to multi-year cost reduction efforts
BRAZIL PRICING - Co said Brazil segment gross profit rose due to favorable pricing dynamics and sales mix
Company press release: ID:nBw3m5hwGa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Miss | $127.92 mln | $138.03 mln (1 Analyst) |
Q1 Loss Per Share |
| $0.11 |
|
Q1 Net Loss |
| $2.02 mln |
|
Q1 Adjusted EBITDA |
| $6.05 mln |
|
Q1 Operating Income |
| -$24,000 |
|
Q1 Pretax Loss |
| $983,000 |
|
Analyst Coverage
Wall Street's median 12-month price target for Unifi Inc is $12.00, about 112% above its October 28 closing price of $5.66
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 79 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)