Insights
- American company Unifi reported a drop in Q3 FY24 net sales to $149 million from $156.7 million due to lower selling prices and raw material costs.
- The company's gross profit fell to $4.8 million in the third quarter.
- Operating and net losses widened to $6.9 million and $10.3 million, respectively.
- Adjusted EPS in Q3 FY24 worsened to minus $0.57.
Unifi, Inc, a leading US-based innovator in recycled and synthetic yarns, and maker of Repreve, has reported a decrease in net sales to $149.0 million in the third quarter of fiscal 2024 (Q3 FY24) compared to $156.7 million in the same quarter of the previous year. This decline was primarily attributed to lower average selling prices resulting from changes in the sales mix and reduced raw material costs, particularly in the Americas segment. Despite these challenges, the company made competitive market share gains that contributed to higher sales volumes across both the Americas and Brazil segments.
Gross profit for the quarter stood at $4.8 million, a significant decrease from $9.7 million in the third quarter of fiscal 2023. The decline in the Americas segment's profitability, which dropped by $6.7 million, was mainly due to the timing and extent of comparable holiday shutdown periods. On a positive note, the Brazil Segment saw an improvement in gross profit by $1.5 million, driven by favourable pricing and volume gains. The Asia segment also reported a slight increase in gross profit, the company said in a press release.
American company Unifi reported a drop in Q3 FY24 net sales to $149 million from $156.7 million due to lower selling prices and raw material costs.
The company's gross profit fell to $4.8 million in the third quarter.
Operating and net losses widened to $6.9 million and $10.3 million, respectively.
Adjusted EPS in Q3 FY24 worsened to minus $0.57.
Operating results reflected these challenges, with an operating loss of $6.9 million compared to a loss of $2.7 million in the prior year’s corresponding quarter. This was followed by a net loss of $10.3 million, doubling the loss of $5.2 million reported in Q3 FY23. Additionally, the company's adjusted earnings per share (EPS) worsened to minus $0.57 from minus $0.25, and adjusted EBITDA turned negative at $0.8 million, a stark contrast to the $5 million reported last year.
“Our top-line results exhibit substantial improvement over the previous quarter and we delivered our second consecutive quarter of sequential gross profit improvement, giving us confidence that the apparel inventory destocking period reached a bottom and demand is beginning to return to more normalized levels,” said Eddie Ingle, chief executive officer of Unifi.
Fibre2Fashion News Desk (DP)
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