10q10k10q10k.net

What changed in UNIFI INC's 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of UNIFI INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+266 added−242 removedSource: 10-K (2025-08-26) vs 10-K (2024-08-23)

Top changes in UNIFI INC's 2025 10-K

266 paragraphs added · 242 removed · 201 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

59 edited+12 added−11 removed80 unchanged
Biggest changeApplication of these technologies allows for various, separate benefits, including: water repellency, flame retardation, soil release, enhanced color-fastness achieved with less water use, and protection from ultra-violet rays, among other attributes. As we continue to diversify our portfolio beyond apparel and pursue new end markets, we expect to gain margin accretive sales and improve facility utilization.
Biggest changeIn addition to the above, UNIFI combines its research and development efforts with the demands of customers and markets to develop innovative technologies that enhance yarn characteristics. Application of these technologies allows for a diversity of benefits, including: water repellency, flame retardation, soil release, enhanced color-fastness achieved with less water use, and protection from ultra-violet rays, among other attributes.
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 unforeseen adverse impacts.
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.
UNIFI incurs normal operating costs associated with the discharge of materials into the environment but does not believe that these costs are material or inconsistent with those of its domestic competitors. On September 30, 2004, Unifi Kinston, LLC (“UK”), a subsidiary of Unifi, Inc., completed its acquisition of polyester filament manufacturing assets located in Kinston, North Carolina (“Kinston”) from INVISTA.
UNIFI incurs normal operating costs associated with the discharge of materials into the environment but does not believe that these costs are material or inconsistent with those of its domestic competitors. 9 On September 30, 2004, Unifi Kinston, LLC (“UK”), a subsidiary of Unifi, Inc., completed its acquisition of polyester filament manufacturing assets located in Kinston, North Carolina (“Kinston”) from INVISTA.
UNIFI has three reportable segments based on the primary geographies in which UNIFI distributes its products: • The Americas Segment primarily manufactures and sells recycled and synthetic products to yarn manufacturers, knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, home furnishings, automotive, industrial, medical, and other end‑use markets principally in North and Central America.
UNIFI has three reportable segments based on the primary geographies in which UNIFI distributes its products: • The Americas Segment primarily manufactures and sells recycled and synthetic textile products to yarn manufacturers, knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, home furnishings, automotive, industrial, medical, and other end‑use markets principally in North and Central America.
Developments in Principal Markets Americas Our operations in the U.S., El Salvador, and Colombia operate under the Dominican Republic—Central America Free Trade Agreement (“CAFTA-DR”) and the United States-Mexico-Canada Agreement (“USMCA”). Prior to the establishment of the USMCA, we benefited from a similar, historical agreement known as the North American Free Trade Agreement (“NAFTA”).
Developments in Principal Markets Americas Our operations in the U.S., El Salvador, and Colombia operate under the Dominican Republic—Central America Free Trade Agreement (“CAFTA-DR”) and the United States-Mexico-Canada Agreement (“USMCA”). Prior to the establishment of the USMCA, we benefited from a similar agreement known as the North American Free Trade Agreement (“NAFTA”).
Sales and Marketing UNIFI employs an internal sales force operating out of sales offices primarily in the U.S., Brazil, China, El Salvador, Colombia, Turkey, and Europe. UNIFI also relies on independent sales agents for sales in several other countries. UNIFI seeks to create strong customer relationships and to build and strengthen those relationships throughout the supply chain.
Sales and Marketing UNIFI employs an internal sales force operating out of sales offices primarily in the U.S., Brazil, China, El Salvador, Colombia, Turkey, India, and Europe. UNIFI also relies on independent sales agents for sales in several other countries. UNIFI seeks to create strong customer relationships and to build and strengthen those relationships throughout the supply chain.
The Brazil Segment includes a manufacturing location and sales offices in Brazil. • The Asia Segment primarily sources recycled and synthetic products from third party suppliers and sells to yarn manufacturers, knitters, and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets principally in Asia and Europe.
The Brazil Segment includes a manufacturing location and sales offices in Brazil. • The Asia Segment primarily sources recycled and synthetic textile products from third party suppliers and sells to yarn manufacturers, knitters, and weavers principally in Asia and Europe that produce fabric for the apparel, automotive, home furnishings, industrial, and other end-use markets.
For its operations in the U.S., UNIFI produces and buys certain of its raw material fibers for Compliant Yarns from a variety of sources in the U.S., UNIFI produces a portion of its Chip requirements in its REPREVE Recycling Center and purchases the remainder of such requirements primarily from external suppliers for use in its domestic spinning facility to produce POY.
For its operations in the U.S., UNIFI produces and buys certain of its raw material fibers for Compliant Yarns from a variety of sources in the U.S., UNIFI produces a portion of its Chip requirements in its REPREVE Recycling Center and purchases the remainder of such requirements from external suppliers for use in its domestic spinning facility to produce POY.
The Americas Segment consists of sales and manufacturing operations in the U.S., El Salvador, and Colombia. • The Brazil Segment primarily manufactures and sells recycled and synthetic products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets principally in Brazil.
The Americas Segment consists of sales and manufacturing operations in the U.S., El Salvador, and Colombia. • The Brazil Segment primarily manufactures and sells recycled and synthetic textile products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets principally in Brazil.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this report and under the subheading “ Investments in Unconsolidated Affiliates ” in Note 10, "Other Non-Current Assets," to the accompanying consolidated financial statements. 9 Available Information UNIFI’s website is www.unifi.com .
Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this report and under the subheading “ Investments in Unconsolidated Affiliates ” in Note 10, "Other Non-Current Assets," to the accompanying consolidated financial statements. Available Information UNIFI’s website is www.unifi.com .
Copies of such corporate governance materials, as well as any of our SEC reports and all amendments thereto, may also be obtained without charge by writing to Unifi, Inc., 7201 West Friendly Avenue, Greensboro, North Carolina 27410, Attention: Secretary.
Copies of such corporate governance materials, as well as any of our SEC reports and all amendments thereto, may also be obtained without charge by writing to Unifi, Inc., 7201 West Friendly Avenue, Greensboro, North Carolina 27410, Attention: Secretary. 10
The Asia Segment has no manufacturing assets and includes sales offices in China, Turkey, and Hong Kong. Other information for UNIFI’s reportable segments is provided in Note 24, “Business Segment Information,” to the accompanying consolidated financial statements.
The Asia Segment has no manufacturing assets and includes sales offices in China, Turkey, Hong Kong, and India. Other information for UNIFI’s reportable segments is provided in Note 24, “Business Segment Information,” to the accompanying consolidated financial statements.
Through having frequent communications with customers, partnering in product development, and engaging key downstream brands and retailers, UNIFI has created significant pull-through sales and brand recognition for its products.
Through frequent communications with customers, partnering in product development, and engaging key downstream brands and retailers, UNIFI has created significant pull-through sales and brand recognition for its products.
However, beginning in the second half of fiscal 2024, we experienced a slow, but steady improvement in overall sales, primarily due to our increased commercial efforts and portfolio diversification. Looking ahead, we believe our Americas business remains well-positioned to capture long-term growth opportunities, and we are working to mitigate any potential recessionary impacts.
However, beginning in the second half of fiscal 2025, we experienced a slow, but steady improvement in overall sales, primarily due to our increased commercial efforts and portfolio diversification. Looking ahead, we believe our Americas business remains well-positioned to capture long-term growth opportunities, and we are working to mitigate any potential recessionary impacts.
Throughout fiscal 2022 and 2023, we experienced adverse pressure from rising input costs, competitive headwinds, and weakening manufacturing productivity. In addition, in fiscal 2023 and 2024, the Americas Segment experienced lower volumes as a result of lower global demand in connection with the inventory destocking efforts of major brands and retailers.
Throughout fiscal 2023, we experienced adverse pressure from rising input costs, competitive headwinds, and weakening manufacturing productivity. In addition, in fiscal 2023, 2024, and 2025, the Americas Segment experienced lower volumes as a result of lower global demand in connection with the inventory destocking efforts of major brands and retailers.
In addition, UNIFI purchases nylon and polyester products for resale from various suppliers. Although UNIFI does not generally have difficulty obtaining its raw material requirements, UNIFI has, in the past, experienced interruptions or limitations in the supply of certain raw materials.
In addition, UNIFI purchases nylon and polyester products for resale from various suppliers. Although UNIFI does not generally have difficulty meeting its raw material requirements, UNIFI has, in the past, experienced interruptions or limitations in the supply of certain raw materials.
We are encouraged by the performance metrics surrounding the eAFK Evo texturing machines currently operating in our facilities, and we expect these upgrades to generate meaningful investment returns in the future when product demand recovers. Due to the weak demand environment in fiscal 2023 and continued weakness expected in fiscal 2024, UNIFI negotiated two contract modifications with the equipment vendor.
We are encouraged by the performance metrics surrounding the eAFK Evo texturing machines currently operating in our facilities, and we expect these upgrades to generate meaningful investment returns in the future when product demand recovers. Due to the weak demand environment in fiscal 2023 and 2024, UNIFI negotiated two contract modifications with the equipment vendor.
Information regarding risks attendant to UNIFI’s foreign operations is included in “Item 1A. Risk Factors” in this report. Seasonality UNIFI is not significantly impacted by seasonality; however, UNIFI typically experiences its highest sales volumes in the fourth quarter of its fiscal years.
Information regarding risks attendant to UNIFI’s foreign operations is included in “Item 1A. Risk Factors” in this report. 8 Seasonality UNIFI is not significantly impacted by seasonality; however, UNIFI typically experiences its highest sales volumes in the fourth quarter of its fiscal year.
The majority of plastic bottles we utilize in the U.S. are obtained in open-market transactions from various entities throughout the U.S., while our Asian subsidiaries source recycled materials from various countries and entities throughout Asia.
The majority of plastic bottles we utilize in the U.S. are obtained in open-market transactions from recycling companies and municipalities throughout the U.S., while our Asian subsidiaries source recycled materials from various countries and entities throughout Asia.
For the majority of our portfolio, we were able to implement selling price adjustments to protect gross margins in fiscal 2022. However, some selling price adjustments in the U.S. and Central America were not realized rapidly enough in fiscal 2022 to avoid temporary gross margin declines in certain portions of our portfolio.
For the majority of our portfolio, we have been able to implement selling price adjustments to protect gross margins. However, some selling price adjustments in the U.S. and Central America were not realized rapidly enough to avoid temporary gross margin declines in certain portions of our portfolio.
As of June 30, 2024, UNIFI had repurchased 701 shares of its common stock at an average price of $15.90 per share, none of which occurred in fiscal 2024, leaving $38,859 available for repurchases under the 2018 SRP.
As of June 29, 2025, UNIFI had repurchased 701 shares of its common stock at an average price of $15.90 per share, none of which occurred in fiscal 2025, leaving $38,859 available for repurchases under the 2018 SRP.
Joint Ventures and Unconsolidated Affiliates UNIFI participates in one joint venture located in the U.S. that supplies raw materials to the Americas Segment. As of June 30, 2024, UNIFI had $1,603 recorded for this unconsolidated affiliate investment. Other information regarding UNIFI’s unconsolidated affiliates is provided in “Item 7.
Joint Ventures and Unconsolidated Affiliates UNIFI participates in one joint venture located in the U.S. that supplies raw materials to the Americas Segment. As of June 29, 2025, UNIFI had $1,151 recorded for this unconsolidated affiliate investment. Other information regarding UNIFI’s unconsolidated affiliates is provided in “Item 7.
While the ultimate short-term and long-term impacts of these duties are not yet known, UNIFI expects these countervailing and antidumping duty rates to play a significant role in helping to normalize the competitive position of UNIFI’s yarns in the U.S. market against the respective imported yarns.
While the ultimate short-term and long-term impacts of these duties are not yet known, UNIFI expects these countervailing and antidumping duty rates to play a significant role in helping to normalize the competitive position of UNIFI’s yarns in the U.S. market against the respective imported yarns. Competition The industry in which UNIFI operates is global and highly competitive.
UNIFI’s top 10 direct customers accounted for approximately 24% of consolidated net sales for fiscal 2024 and approximately 34% of receivables as of June 30, 2024. However, UNIFI’s consolidated net sales are dependent on demand from a relatively small number of brand partners.
UNIFI’s top 10 direct customers accounted for approximately 24% of consolidated net sales for fiscal 2025 and approximately 26% of receivables as of June 29, 2025. However, UNIFI’s consolidated net sales are dependent on demand from a relatively small number of brand partners.
UNIFI’s consolidated net sales are not materially dependent on a single direct customer and no single direct customer accounts for 10% or more of UNIFI’s consolidated net sales. In fiscal 2024, OIA Global comprised 13% of the Asia Segment's sales and Milliken & Company comprised 10% of the Americas Segment's sales.
UNIFI’s consolidated net sales are not materially dependent on a single direct customer and no single direct customer accounts for 10% or more of UNIFI’s consolidated net sales. In fiscal 2025, OIA Global comprised 10% of the Asia Segment's sales.
While we navigated the dynamic cost environment during fiscal 2022 through 2024 better than in earlier prior years, fixed cost absorption and manufacturing productivity have adversely impacted our gross margin and remain current headwinds to UNIFI’s profitability, most notably in the Americas Segment.
While we navigated the dynamic cost environment during fiscal 2023 through 2025 better than in earlier prior years, low manufacturing utilization and manufacturing productivity have adversely impacted our gross margin and remain current headwinds to UNIFI’s profitability, most notably in the Americas Segment.
Beyond the specific demand challenges within the textile industry, our business was adversely impacted by: (i) the impact of inflation on consumer spending and (ii) rising interest rates for consumers and customers, including the impact on the carrying costs of customer inventories.
Beyond the specific demand challenges within the textile industry, our business was adversely impacted by: (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 resulting from trade and regulatory matters (including tariffs).
The polyester and nylon fiber sectors together account for approximately 62% of North American textile consumption. 4 According to the National Council of Textile Organizations, the U.S. textile and apparel industry’s total shipments were approximately $64.8 billion for calendar 2023 as the U.S. textile and apparel industry exported nearly $29.7 billion of textile and apparel products.
The polyester and nylon fiber sectors together account for approximately 62% of North American textile consumption. According to the National Council of Textile Organizations, the U.S. textile and apparel industry’s total shipments were approximately $63.9 billion for calendar 2024 as the U.S. textile and apparel industry exported nearly $28.0 billion of textile and apparel products.
UNIFI’s major competitors in the Americas region for polyester yarns are Aquafil O'Mara; United Textiles of America S.de R.L. de C.V.; NanYa Plastics Corp. of America (“NanYa”); and C S Central America S.A. de C.V.
UNIFI’s major competitors in the Americas region for polyester yarns are Aquafil O'Mara; United Textiles of America S.de R.L. de C.V.; NanYa Plastics Corp. of America (“NanYa”); and C S Central America S.A. de C.V. In fiscal 2024, a major competitor, AKRA, S.A. de C.V., closed its polyester manufacturing facility in Monterrey, Mexico.
Lastly, covering operations utilize a spandex core to produce yarns with more stretch, compression, or comfort. UNIFI’s subsidiaries in Asia offer the same high-quality and innovative products and technologies through contract manufacturing arrangements with local manufacturers. This asset-light model allows for seamless integration of our products into the global supply chains of our customers.
UNIFI’s subsidiaries in Asia offer the same high-quality and innovative products and technologies through contract manufacturing arrangements with local manufacturers. This asset-light model allows for seamless integration of our products into the global supply chains of our customers.
We estimate our consolidated net sales for fiscal 2024 were distributed across our primary end markets as follows: • Apparel (including hosiery and footwear) represented approximately 59% of our consolidated net sales. • Industrial represented approximately 13% of our consolidated net sales, and includes medical, belting, tapes, filtration, ropes, protective fabrics, and awnings. • Furnishings (including both contract and home furnishings) represented approximately 12% of our consolidated net sales, and is largely dependent upon the housing market, which, in turn, is influenced by consumer confidence and credit availability. • Automotive represented approximately 5% of our consolidated net sales. • All other markets represented approximately 11% of our consolidated net sales. 6 In addition to the above, UNIFI combines its research and development efforts with the demands of customers and markets to develop innovative technologies that enhance yarn characteristics.
We estimate our consolidated net sales for fiscal 2025 were distributed across our primary end markets as follows: • Apparel (including hosiery and footwear) represented approximately 58% of our consolidated net sales. • Industrial represented approximately 12% of our consolidated net sales, and includes medical, belting, tapes, filtration, ropes, protective fabrics, and awnings. • Furnishings (including both contract and home furnishings) represented approximately 12% of our consolidated net sales, and is largely dependent upon the housing market, which, in turn, is influenced by consumer confidence and credit availability. • Automotive represented approximately 6% of our consolidated net sales. • All other markets represented approximately 12% of our consolidated net sales.
Capital Investments Fiscal 2021 through 2023 capital investments increased in connection with our planned investment of approximately $100,000 into the Americas and Brazil Segments for new eAFK Evo texturing machinery that has significant efficiency, productivity, and flexibility benefits over our legacy equipment.
Of our consolidated net sales in fiscal 2025, 2024, and 2023, REPREVE Fiber sales comprised 31%, 32%, and 30%, or $174,855, $188,517, and $186,161, respectively. 3 Capital Investments Fiscal 2021 through 2023 capital investments increased in connection with our planned investment of approximately $100,000 into the Americas and Brazil Segments for new eAFK Evo texturing machinery that has significant efficiency, productivity, and flexibility benefits over our legacy equipment.
Dollar (“USD”), any of which could make UNIFI’s products, or the related supply chains, less competitive. While competitors have traditionally focused on high-volume commodity products, they are now increasingly focused on specialty products that UNIFI historically has been able to leverage to generate higher margins.
While competitors have traditionally focused on high-volume commodity products, they are now increasingly focused on specialty products that UNIFI historically has been able to leverage to generate higher margins.
UNIFI’s products are manufactured according to customer specifications and are shipped based upon customer order requirements. Customer payment terms are generally consistent with prevailing industry practices for the geographies in which we participate.
Customers UNIFI’s Americas Segment, Brazil Segment, and Asia Segment serve approximately 480, 360, and 540 customers, respectively, all in a variety of geographic markets. UNIFI’s products are manufactured according to customer specifications and are shipped based upon customer order requirements. Customer payment terms are generally consistent with prevailing industry practices for the geographies in which we participate.
UNIFI also includes, as part of its research and development initiatives, the use of continuous improvement methodologies to increase its manufacturing and other operational efficiencies, both to enhance product quality and to derive cost savings.
UNIFI also includes, as part of its research and development initiatives, the use of continuous improvement methodologies to increase its manufacturing and other operational efficiencies, both to enhance product quality and to derive cost savings. For fiscal 2025, 2024, and 2023, UNIFI incurred $8,750, $9,599, and $10,871, respectively, in costs for research and development (including employee costs).
The primary supplier of nylon raw materials for the Americas Segment are UNF America, LLC (“UNFA”); The LYCRA Company; and Nilit Ltd. ("Nilit"). UNFA is a joint venture owned 50% by UNIFI. Currently, there are multiple domestic and foreign suppliers available to fulfill UNIFI’s sourcing requirements for its recycled products.
UNFA is a joint venture owned 50% by UNIFI. Currently, there are multiple domestic and foreign suppliers available to fulfill UNIFI’s sourcing requirements for its recycled products.
In fiscal 2025, we expect to invest between $10,000 and $12,000 in capital projects, including making further improvements in production capabilities and technological enhancements in the Americas and annual maintenance capital expenditures. 3 Share Repurchases In addition to capital investments and debt retirement, UNIFI may utilize excess cash for strategic share repurchases.
In fiscal 2026, we expect to invest between $8,000 and $12,000 in capital projects, primarily relating to routine annual maintenance capital expenditures. Share Repurchases In addition to capital investments and debt retirement, UNIFI may utilize excess cash for strategic share repurchases.
For sales of Compliant Yarns, UNIFI competes with a limited number of foreign and domestic producers of polyester and nylon yarns. For sales of non-Compliant Yarns, UNIFI competes with a larger number of foreign and domestic producers of polyester and nylon yarns that can meet the required customer specifications of quality, reliability, and timeliness.
For sales of non-Compliant Yarns, UNIFI competes with a larger number of foreign and domestic producers of polyester and nylon yarns that can meet the required customer specifications of quality, reliability, and timeliness. UNIFI is affected by imported textile, apparel, and hosiery products, which adversely impact demand for UNIFI’s polyester and nylon products in certain of its markets.
Products, Technologies, and Related Markets Our virgin and recycled products sold across all geographies range from specialty, value-added, to commodity. We provide products to a variety of end-use markets, principally apparel, industrial, furnishings, and automotive.
In any event, UNIFI monitors these dynamic factors closely and does not currently engage in hedges of polyester or nylon raw materials. 6 Products, Technologies, and Related Markets Our virgin and recycled products sold across all geographies range from specialty, value-added, to commodity. We provide products to a variety of end-use markets, principally apparel, industrial, furnishings, and automotive.
The prices of the principal raw materials used by UNIFI continuously fluctuate, and it is difficult or impossible to predict trends or upcoming developments. In any event, UNIFI monitors these dynamic factors closely and does not currently engage in hedges of polyester or nylon raw materials.
The prices of the principal raw materials used by UNIFI continuously fluctuate, and it is difficult or impossible to predict trends or upcoming developments.
Despite the difficult operating environment, we have continued to focus on commercializing value-added products and creating differentiation through innovation and sustainability, while also expanding our sales channels beyond traditional apparel end-uses.
Despite the difficult operating environment, we have continued to focus on commercializing value-added products and creating differentiation through innovation and sustainability, while also expanding our sales channels beyond traditional apparel end-uses. In fiscal 2025, the Brazil Segment's operating results continued to perform well with steady demand and market share gains, despite competitive import pricing pressures and unfavorable foreign currency impacts.
Because UNIFI is the largest of only a few significant producers of Compliant Yarns under the Regional FTAs, UNIFI continues to leverage its eligibility status for duty-free processing to increase its share of business with regional and domestic fabric producers who ship their products into this region.
Because UNIFI is the largest of only a few significant producers of Compliant Yarns under the Regional FTAs, UNIFI continues to leverage its eligibility status for duty-free processing to increase its share of business with regional and domestic fabric producers who ship their products into this region. 5 Recent efforts to normalize the pricing dynamics between domestic and imported products have resulted in antidumping and countervailing duties placed on polyester textured yarn imports from certain countries that compete in Americas Segment markets.
This action allows for improved short- and mid-term liquidity in light of the current subdued levels of sales and facility utilization and allows for a better matching of future capital expenditures with expected higher levels of future business activity.
These actions allow for (i) improved short- and mid-term liquidity in light of the current subdued levels of sales and facility utilization and (ii) a better matching of future capital expenditures with the consolidation of UNIFI's yarn manufacturing operations.
Based on the establishment of many commercial and branded programs, this strategy has been successful for UNIFI. Product Customization and Manufacturing Processes UNIFI uses advanced production processes to manufacture its high-quality products cost-effectively in North America, Central America, and Brazil and transfers relevant technical knowledge to its asset light operations in Asia for manufacture with trusted supply chain partners.
Product Customization and Manufacturing Processes UNIFI uses advanced production processes to manufacture its high-quality products cost-effectively in North America, Central America, and Brazil and transfers relevant technical knowledge to its asset light operations in Asia for manufacture with trusted supply chain partners. 7 Additional processing of UNIFI’s polyester POY includes texturing, dyeing, twisting, beaming, draw winding, and covering.
The primary metric for tracking growth of the REPREVE brand is REPREVE Fiber sales. REPREVE Fiber represents UNIFI's collection of fiber products on its recycled platform, with or without added technologies. Of our consolidated net sales in fiscal 2022, 2023, and 2024, REPREVE Fiber sales comprised 36%, 30%, and 32%, or $293,080, $186,161, and $188,517, respectively.
The primary metric for tracking growth of the REPREVE brand is REPREVE Fiber sales. REPREVE Fiber represents UNIFI's collection of fiber products on its recycled platform, with or without added technologies.
Due to its current brand recognition and potential growth opportunities, UNIFI believes that its portfolio of registered REPREVE trademarks is its most significant trademark asset. Ownership rights in registered trademarks typically do not expire if the trademarks are continued in use and properly protected under applicable law. UNIFI licenses certain trademarks, including Dacron ® and Softec™, from Invista S.a.r.l. (“INVISTA”).
Ownership rights in registered trademarks typically do not expire if the trademarks are continued in use and properly protected under applicable law. UNIFI licenses certain trademarks, including Dacron ® and Softec™, from Invista S.a.r.l. (“INVISTA”). UNIFI also employs its innovative manufacturing know-how, methods, and processes to produce and deliver proprietary solutions to customers and brand partners.
However, we monitor our input costs closely, and we expect to maintain our ability to respond quickly to cost fluctuations to minimize any potential adverse impacts to earnings. 8 Beyond the current inflationary environment experienced in fiscal 2022, 2023, and 2024, UNIFI expects that costs could continue to rise long term for certain consumables used to produce and ship its products, as well as for its utilities and labor.
Beyond the inflationary environment experienced during fiscal 2023 through 2025, UNIFI expects that costs could continue to rise long-term for certain consumables used to produce and ship its products, as well as for its utilities and labor.
However, much of our portfolio in the Asia region is advantaged by specialty and recycled products and a global sourcing and support model that assists in differentiation. UNIFI’s major competitors for nylon yarn sales in the U.S. are Sapona Manufacturing Company, Inc. and McMichael Mills, Inc.
However, much of our portfolio in the Asia region is advantaged by specialty and recycled products and a global sourcing and support model that assists in differentiation. Globally, competitors for our REPREVE products include recycled brands from Far Eastern New Century, Tiejin, Radici, and Polygenta.
Twisting incorporates real twist into filament yarns, which can be sold for a variety of uses, such as sewing thread, home furnishings, and apparel. Beaming places both textured and covered yarns onto beams to be used by customers in warp knitting and weaving applications. The draw winding process utilizes heat and draws POY to produce mid-tenacity, flat yarns.
Beaming places both textured and covered yarns onto beams to be used by customers in warp knitting and weaving applications. The draw winding process utilizes heat and draws POY to produce mid-tenacity, flat yarns. Lastly, covering operations utilize a spandex core to produce yarns with more stretch, compression, or comfort.
Globally, competitors for our REPREVE products include recycled brands from Far Eastern New Century, Tiejin, Radici, and Polygenta. Raw Materials, Suppliers and Sourcing The primary raw material supplier for the Americas Segment of virgin Chip and POY is NanYa. For the Brazil Segment, Reliance Industries, Ltd. is the primary supplier of POY.
Raw Materials, Suppliers and Sourcing The primary raw material supplier for the Americas Segment of virgin Chip and POY is NanYa. For the Brazil Segment, Reliance Industries, Ltd. is the primary supplier of POY. The primary suppliers of nylon raw materials for the Americas Segment are UNF America, LLC (“UNFA”); and The LYCRA Company.
Additional processing of UNIFI’s polyester POY includes texturing, dyeing, twisting, beaming, draw winding, and covering. The texturing process involves the use of high-speed machines to draw, heat, and false-twist POY to produce yarn with different physical characteristics, depending on its ultimate end-use.
The texturing process involves the use of high-speed machines to draw, heat, and false-twist POY to produce yarn with different physical characteristics, depending on its ultimate end-use. Texturing gives the yarn greater bulk, strength, stretch, consistent dye-ability, and a softer feel, thereby making it suitable for use in the knitting and weaving of fabric.
UNIFI is affected by imported textile, apparel, and hosiery products, which adversely impact demand for UNIFI’s polyester and nylon products in certain of its markets. Several foreign competitors have significant advantages, including lower wages, raw material costs, and capital costs and favorable foreign currency exchange rates against the U.S.
Several foreign competitors have significant advantages, including lower wages, raw material costs, and capital costs and favorable foreign currency exchange rates against the U.S. Dollar (“USD”), any of which could make UNIFI’s products, or the related supply chains, less competitive.
We remain committed to restoring and increasing profitability across our global businesses, while enhancing and delivering upon the demand for value-added innovative and sustainable products. Global Conflicts 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.
The Asia Segment is better able to withstand volatility in product demand due to its asset-light model. We remain committed to restoring and increasing profitability across our global businesses, while enhancing and delivering upon the demand for value-added innovative and sustainable products.
Ultimately, combining leading-edge innovation with our prominent, high-quality brand and agile regional business model will allow for underlying sales and profitability growth. 2 Fiscal 2024 Financial Performance In fiscal 2024, while sales volumes increased, lower sales prices in response to lower raw material input costs for the Americas Segment adversely impacted our ability to generate profits and cash flows.
Ultimately, combining leading-edge innovation with our prominent, high-quality brand and agile regional business model will allow for underlying sales and profitability growth. 2 Fiscal 2025 Financial Performance In fiscal 2025, despite recent improvements in sales volumes and ongoing growth in Central America, the Americas Segment continued to experience customer-demand headwinds, along with continued pricing pressures and lower than anticipated manufacturing utilization that weighed on gross margins.
We are encouraged by programs undertaken with key brands and retailers that benefit from the diversification and innovation of our global portfolio. Looking ahead, we expect to expand into additional markets in India, Europe, Africa, and the Middle East utilizing the asset-light supply chain and service model that has been successful for us in Asia.
We are encouraged by programs undertaken with key brands and retailers that benefit from the diversification and innovation of our global portfolio.
Indicating our expanded product portfolio and enhanced technological capabilities, we recently introduced new products based on the Textile Takeback platform and Thermaloop insulation. Customers UNIFI’s Americas Segment, Brazil Segment, and Asia Segment serve approximately 500, 400, and 600 customers, respectively, all in a variety of geographic markets.
As we continue to diversify our portfolio beyond apparel and pursue new end markets, we expect to gain margin accretive sales and improve facility utilization. Indicating our expanded product portfolio and enhanced technological capabilities, we recently introduced new products based on the Textile Takeback platform and Thermaloop insulation.
UNIFI also employs its innovative manufacturing know-how, methods, and processes to produce and deliver proprietary solutions to customers and brand partners. UNIFI relies on the copyright and trade secret laws of the U.S. and other countries, as well as nondisclosure and confidentiality agreements, to protect these rights.
UNIFI relies on the copyright and trade secret laws of the U.S. and other countries, as well as nondisclosure and confidentiality agreements, to protect these rights. Human Capital As of June 29, 2025, UNIFI had approximately 2,700 employees, which includes approximately 200 individuals working under temporary labor contracts.
Human Capital As of June 30, 2024, UNIFI had approximately 2,900 employees, which includes approximately 200 individuals working under temporary labor contracts. The number of employees in each of the Americas, Brazil, and Asia Segments and the corporate office were approximately 1,900, 800, 100, and 100, respectively, at June 30, 2024.
The number of employees in each of the Americas, Brazil, and Asia Segments and the corporate office were approximately 1,700, 800, 100, and 100, respectively, at June 29, 2025. In fiscal 2025, UNIFI reduced its headcount due to the transition of the Madison, North Carolina manufacturing operations to other production facilities in North and Central America.
Furthermore, we expect continued governmental support on these efforts as both presidential candidates have concerns regarding the impacts of Chinese imports. 5 Competition The industry in which UNIFI operates is global and highly competitive. UNIFI competes not only as a global yarn producer, but also as part of a regional supply chain for certain textile products.
UNIFI competes not only as a global yarn producer, but also as part of a regional supply chain for certain textile products. For sales of Compliant Yarns, UNIFI competes with a limited number of foreign and domestic producers of polyester and nylon yarns.
Removed
We continued to experience a weak global demand environment which resulted in sales levels that were well below historical trends and continued pricing pressures and inflationary impacts that weighed on gross margins.
Added
Due to the continued unfavorable impact of low facility utilization and productivity levels in the Americas Segment, UNIFI adopted cost savings measures which included the consolidation of yarn manufacturing operations in the Americas Segment with the closure and sale of the Madison, North Carolina facility.
Removed
In response to weak operating results, we implemented a Profitability Improvement Plan in fiscal 2024, which consisted primarily of workforce reductions and sales transformation efforts intended to lower operating expenses and increase gross margin opportunities.
Added
In fiscal 2025, the Asia Segment's results decreased primarily due to weak demand and a change in sales mix of REPREVE products. The sales volumes in the Asia Segment, particularly for apparel, were unfavorably impacted by volatility from customer-demand headwinds and tariffs placed upon many countries outside of the United States in the second half of this fiscal year.
Removed
In fiscal 2024, the Brazil Segment's operating results improved sequentially throughout the year with normal pricing dynamics and market share gains following the exit of a domestic competitor overcoming early competitive import pricing pressures.
Added
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. Fortunately, UNIFI has been expanding its supply chain and business model across multiple geographies over the last several years.
Removed
In fiscal 2024, the Asia Segment's results increased primarily due to (i) a strong sales mix and (ii) higher sales volumes compared to fiscal 2023 despite continued weak global demand.
Added
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, most recently with the addition of Unifi Textiles India in October 2024.
Removed
The Asia Segment is better able to withstand volatility in product demand due to its asset-light model and the lack of fixed cost absorption that can be unfavorable in times of weaker demand for asset intensive operations like our Americas and Brazil Segments.
Added
Each of these concepts affords us diversity in this dynamic trade environment and greater flexibility in servicing our customer base. 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, however we have not been directly impacted.
Removed
The existing challenges and future uncertainty, particularly for global demand, labor productivity, and potential further inflation, could worsen and/or continue for prolonged periods, materially impacting our financial performance. The need for future selling price adjustments could impact our ability to retain current customer programs and compete successfully for new programs in certain regions.
Added
In the fourth quarter of fiscal 2025, UNIFI terminated the overall contract in exchange for the forfeiture of $1,448 in deposits which is included in Restructuring costs within the Consolidated Statements of Operations.
Removed
The lower REPREVE Fiber sales for fiscal 2023 and 2024 were driven primarily by weak global demand for both years.
Added
During fiscal 2025, customer-demand headwinds resulted in depressed volumes in Asia and in the second half of the fiscal year, tariffs placed upon many foreign countries resulted in additional demand volatility due to the recent actions taken by the U.S. during trade-related negotiations. 4 Looking ahead, we expect to expand into additional markets in India, Europe, Africa, and the Middle East utilizing the asset-light supply chain and service model that has been successful for us in Asia.
Removed
Recent efforts to normalize the pricing dynamics between domestic and imported products have resulted in antidumping and countervailing duties placed on polyester textured yarn imports from certain countries that compete in Americas Segment markets.
Added
UNIFI’s major competitors for nylon yarn sales in the U.S. are Sapona Manufacturing Company, Inc. and McMichael Mills, Inc. As UNIFI is the only domestic producer of textured polyester in Brazil, our major competitors in Brazil are traders of imported yarns and fibers.
Removed
In fiscal 2024, a major competitor, AKRA, S.A. de C.V., closed its polyester manufacturing facility in Monterrey, Mexico providing us an opportunity to gain additional market share. UNIFI’s major competitors in Brazil are traders of imported yarns and fibers.
Added
Our sales and marketing strategy leverages a multi-channel digital approach, including targeted social media collaborations and campaigns, dynamic website engagement, and strategic media outreach, to enhance brand visibility, drive customer acquisition, and support product conversion across key markets. Based on the establishment of many commercial and branded programs, this strategy has been successful for UNIFI.
Removed
Texturing gives the yarn greater bulk, strength, stretch, consistent dye-ability, and a softer feel, thereby making it suitable for use in the knitting and weaving of fabric. Solution dyeing and package dyeing allow for matching of customer-specific color requirements for yarns sold into various markets.
Added
Solution dyeing and package dyeing allow for matching of customer-specific color requirements for yarns sold into various markets. Twisting incorporates real twist into filament yarns, which can be sold for a variety of uses, such as sewing thread, home furnishings, and apparel.
Removed
For fiscal 2024, 2023, and 2022, UNIFI incurred $9,599, $10,871, and $12,103, respectively, in costs for research and development (including employee costs). 7 Intellectual Property UNIFI has numerous trademarks registered in the U.S. and in other countries and jurisdictions around the world.

… 2 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

15 edited+7 added−3 removed77 unchanged
Biggest changeThe disclosure requirements of the new rule, as they stand currently, become effective for UNIFI beginning in fiscal 2027 and continue through fiscal 2032. A legal challenge to the new rule has been filed in the U.S. Court of Appeals and the SEC has announced that it would voluntarily stay its final climate disclosure rule pending judicial review.
Biggest changeThe disclosure requirements of the new rule would have become effective for UNIFI beginning in fiscal 2027 and continued through fiscal 2032. A legal challenge to the new rule was filed in the U.S. Court of Appeals shortly after the SEC’s adoption and the SEC issued a voluntarily stay of the climate rule pending judicial review.
Any significant disruption or curtailment in the supply of any of its raw materials could cause UNIFI to reduce or cease its production for an extended period, or require UNIFI to increase its pricing, any of which could have a material adverse effect on its business, financial condition, results of operations, or cash flows.
Any significant disruption or curtailment in the supply of any of its raw materials could cause UNIFI to reduce or cease production for an extended period, or require UNIFI to increase its pricing, any of which could have a material adverse effect on its business, financial condition, results of operations, or cash flows.
There are currently a number of trade regulations and duties in place to protect the U.S. textile industry against competition from low-priced foreign producers, such as those in China, India, and Vietnam. Political and policy-driven influences are subjecting international trade regulations to significant volatility.
There are currently a number of trade regulations, duties, and tariffs in place to protect the U.S. textile industry against competition from low-priced foreign producers, such as those in China, India, and Vietnam. Political and policy-driven influences are subjecting international trade regulations to significant volatility.
Future changes in such trade regulations or duties may make the price of UNIFI’s products less attractive than the goods of its competitors or the finished products of a competitor in the supply chain, which could have a material adverse effect on UNIFI’s business, financial condition, results of operations, or cash flows.
Future changes in such trade regulations, duties, or tariffs may make the price of UNIFI’s products less attractive than the goods of its competitors or the finished products of a competitor in the supply chain, which could have a material adverse effect on UNIFI’s business, financial condition, results of operations, or cash flows.
Illegal transshipment involves circumventing duties by falsely claiming that textiles and apparel are products of a particular country of origin (or include yarn of a particular country of origin) to avoid paying higher duties or to receive benefits from regional free trade agreements, such as USMCA/NAFTA and CAFTA-DR.
Illegal transshipment involves circumventing duties by falsely claiming that textiles and apparel are products of a particular country of origin (or include yarn of a particular country of origin) to avoid paying higher duties and tariffs or to receive benefits from regional free trade agreements, such as USMCA/NAFTA and CAFTA-DR.
Such changes in import duties in the U.S. and other countries in which we operate might also result in increased direct and indirect costs on items imported to support UNIFI’s operations and/or countervailing or responsive changes applicable to exports of our products outside the U.S.
Such changes in import duties and tariffs in the U.S. and other countries in which we operate might also result in increased direct and indirect costs on items imported to support UNIFI’s operations and/or countervailing or responsive changes applicable to exports of our products outside the U.S.
The use of UNIFI’s intellectual property by others without authorization may cause it to lose sales, reduce any competitive advantage UNIFI has developed, or otherwise harm its business. 11 Financial Risks UNIFI has significant foreign operations, and its consolidated results of operations and business may be adversely affected by the risks associated with doing business in foreign locations, including the risk of fluctuations in foreign currency exchange rates.
The use of UNIFI’s intellectual property by others without authorization may cause it to lose sales, reduce any competitive advantage UNIFI has developed, or otherwise harm its business. 12 Financial Risks UNIFI has significant foreign operations, and its consolidated results of operations and business may be adversely affected by the risks associated with doing business in foreign locations, including the risk of fluctuations in foreign currency exchange rates.
The loss of a large brand partner, and the failure to add new customers to replace the corresponding lost sales, would have a material adverse effect on our business, financial condition, results of operations, and cash flows. 10 Significant price volatility of UNIFI’s raw materials and rising energy costs may result in increased production costs.
The loss of a large brand partner, and the failure to add new customers to replace the corresponding lost sales, would have a material adverse effect on our business, financial condition, results of operations, and cash flows. 11 Significant price volatility of UNIFI’s raw materials and rising energy costs may result in increased production costs.
Based on our monitoring activities, we currently believe our lending counterparties will be able to perform their commitments. 12 Operational Risks UNIFI depends on limited sources for certain of its raw materials, and interruptions in supply could increase its costs of production, cause production inefficiencies, or lead to a halt in production.
Based on our monitoring activities, we currently believe our lending counterparties will be able to perform their commitments. 13 Operational Risks UNIFI depends on limited sources for certain of its raw materials, and interruptions in supply could increase its costs of production, cause production inefficiencies, or lead to a halt in production.
Additionally, weaknesses in energy infrastructure could result in supply disruptions that could indirectly affect our operations and could adversely impact our results of operations and cash flows. In March 2024, the SEC issued a final rule that requires registrants to provide climate disclosures in their annual reports and registration statements.
Additionally, weaknesses in energy infrastructure could result in supply disruptions that could indirectly affect our operations and could adversely impact our results of operations and cash flows. In March 2024, the SEC issued a final rule that required registrants to provide climate disclosures in their annual reports and registration statements.
Additionally, the end-consumer retail and apparel markets may continue to experience difficult conditions and other transformations, which could have an adverse effect on UNIFI’s business and financial condition. 13 General Risks Unfavorable changes in trade policies and/or violations of existing trade policies could weaken UNIFI’s competitive position significantly and have a material adverse effect on its business.
Additionally, the end-consumer retail and apparel markets may continue to experience difficult conditions and other transformations, which could have an adverse effect on UNIFI’s business and financial condition. 14 General Risks Unfavorable changes in trade policies and tariffs and/or violations of existing trade policies could weaken UNIFI’s competitive position significantly and have a material adverse effect on its business.
Additionally, UNIFI operates in countries with foreign exchange controls. These controls may limit UNIFI’s ability to transfer funds from its international operations and joint venture or otherwise to convert local currencies into USDs. These limitations could adversely affect UNIFI’s ability to access cash from its foreign operations.
Additionally, UNIFI operates in countries with foreign exchange controls. These controls may limit UNIFI’s ability to transfer funds from its international operations or otherwise to convert local currencies into USDs. These limitations could adversely affect UNIFI’s ability to access cash from its foreign operations.
While foreign competitors have traditionally focused on commodity production, entities are now increasingly focused on value-added products and unbranded recycled products. Competition from unbranded recycled yarns has increased, and could drive market share losses for our flagship REPREVE brand.
While foreign competitors have traditionally focused on commodity production, entities are now increasingly focused on value-added products and unbranded recycled products. Competition from unbranded recycled yarns has increased, and has resulted in market share losses for our flagship REPREVE brand.
UNIFI has foreign operations in Brazil, China, Colombia, El Salvador, and Turkey and participates in a joint venture located in the U.S. In addition, to help service its customers, UNIFI from time to time engages with third-party independent contractors to provide sales and distribution, manufacturing, and other operational and administrative support services in locations around the world.
UNIFI has foreign operations in Brazil, China, Colombia, El Salvador, India, and Turkey. In addition, to help service its customers, UNIFI from time to time engages with third-party independent contractors to provide sales and distribution, manufacturing, and other operational and administrative support services in locations around the world.
If UNIFI is unable to move production based on customer requests or other shifts in regional demand, we may lose sales and experience an adverse effect on our business, financial condition, results of operations, or cash flows. A significant portion of our sales is dependent upon demand from a few large brand partners.
If UNIFI is unable to move production based on customer requests or other shifts in regional demand, we may lose sales and experience an adverse effect on our business, financial condition, results of operations, or cash flows.
Removed
Part of our strategy also includes the license of our trademarks to brand partners, customers, independent contractors, and other third parties. For example, we license our REPREVE trademarks to brand partners that feature this trademark on their marketing materials as part of a co-branded environmental sustainability product narrative.
Added
Due to the uncertain economic and regulatory environment with regards to China, certain customers and brand partners have shifted their supply chains from China to other countries in the region.
Removed
Any such development would have a material adverse effect on UNIFI.
Added
If customers and brand partners continue to move their supply base from China, this would have a negative impact on UNIFI’s profitability in a geographic location where we have made a significant investment in people and the manufacturing partners that make up our supply chain.
Removed
As such, the final disclosure requirements and reporting timeline are currently unknown, as is the cost of compliance with the new disclosure requirements in their final form. 14 Item 1B. Unresolv ed Staff Comments None.
Added
A significant portion of our sales is dependent upon demand from a few large brand partners.
Added
We license our trademarks to brands and customers through formal licensing agreements, allowing for co-branding usage and related marketing claims when our products or technologies are used. All such usage must comply with the terms set forth in the licensing agreement as well as meet our requirements for certification and content usage.
Added
Any such development would have a material adverse effect on UNIFI. The Company is always engaged in efforts to reduce costs and rationalize assets (i.e. improve liquidity). In fiscal 2025, UNIFI identified under-utilized assets to sell at a premium price, which allowed for some deleveraging.
Added
In March 2025, the SEC announced that it had voted to end its defense of the final rule. As such, the final disclosure requirements, if any, and reporting timeline are currently unknown.
Added
While UNIFI may not be required to make climate disclosures under the SEC’s rules, the Company may need to make disclosure under state or international climate-related rules in the regions in which we do business. 15 Item 1B. Unresolv ed Staff Comments None.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

3 edited+0 added−0 removed15 unchanged
Biggest changeFor the years presented, we did not identify any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that had, or were reasonably likely to have, a material affect on the Company, including our business strategy, results of operations, or financial condition.
Biggest changeFor the years presented, we did not identify any risks from cybersecurity threats , including as a result of any previous cybersecurity incidents, that had, or were reasonably likely to have, a material effect on the Company, including our business strategy, results of operations, or financial condition.
The Company’s Information Technology Security Team and its cybersecurity infrastructure is overseen by the CIO who reports to the Chief Executive Officer. The CIO has served in various roles in information technology for over 29 years. Furthermore, UNIFI management prepares, and the Audit Committee reviews and discusses, a quarterly assessment of our risks on an enterprise-wide basis.
The Company’s Information Technology Security Team and its cybersecurity infrastructure is overseen by the CIO who reports to the Chief Executive Officer. The CIO has served in various roles in information technology for over 30 years. Furthermore, UNIFI management prepares, and the Audit Committee reviews and discusses, a quarterly assessment of our risks on an enterprise-wide basis.
We conduct a rigorous enterprise risk management program that is updated quarterly and is designed to bring to the Audit Committee’s attention our most critical risks for evaluation, including cybersecurity risks. 15
We conduct a rigorous enterprise risk management program that is updated quarterly and is designed to bring to the Audit Committee’s attention our most critical risks for evaluation, including cybersecurity risks. 16

Item 2. Properties

Properties — owned and leased real estate

2 edited+2 added−1 removed0 unchanged
Biggest changeFt.) Owned or Leased Administrative Greensboro, North Carolina Corporate headquarters 121,000 Owned Americas Segment Domestic Yadkinville, North Carolina Manufacturing facility 812,000 Owned Yadkinville, North Carolina Manufacturing facility 413,000 Owned Yadkinville, North Carolina Manufacturing facility 261,000 Owned Yadkinville, North Carolina Manufacturing facility 212,000 Owned Yadkinville, North Carolina Manufacturing facility 147,000 Owned Yadkinville, North Carolina Warehouse 400,000 Owned Yadkinville, North Carolina Warehouse 217,000 Owned Yadkinville, North Carolina Warehouse 120,000 Owned Yadkinville, North Carolina Warehouse 82,000 Leased Yadkinville, North Carolina Warehouse 61,000 Leased Reidsville, North Carolina Manufacturing facility 384,000 Owned Reidsville, North Carolina Manufacturing facility 160,000 Owned Reidsville, North Carolina Warehouse 91,000 Leased Madison, North Carolina Manufacturing facility 947,000 Owned Madison, North Carolina Warehouse 31,000 Owned Madison, North Carolina Warehouse 102,000 Leased Foreign Ciudad Arce, El Salvador Manufacturing facility 132,000 Leased Ciudad Arce, El Salvador Warehouse 59,000 Leased Bogota, Colombia Manufacturing facility 31,000 Owned Bogota, Colombia Sales office 1,000 Leased Brazil Segment Foreign Alfenas, Brazil Manufacturing facility 360,000 Owned Alfenas, Brazil Warehouse 354,000 Owned Sao Paulo, Brazil Corporate office 13,000 Leased Asia Segment Foreign Suzhou, China Sales office 17,000 Leased Suzhou, China Warehouse 75,000 Leased Suzhou, China Warehouse 59,000 Leased Management believes all of UNIFI’s operating properties are well maintained and in good condition.
Biggest changeFt.) Owned or Leased Administrative Greensboro, North Carolina Corporate headquarters 121,000 Owned Americas Segment Domestic Yadkinville, North Carolina Manufacturing facility 812,000 Owned Yadkinville, North Carolina Manufacturing facility 413,000 Owned Yadkinville, North Carolina Manufacturing facility 261,000 Owned Yadkinville, North Carolina Manufacturing facility 212,000 Owned Yadkinville, North Carolina Manufacturing facility 147,000 Owned Yadkinville, North Carolina Warehouse 400,000 Owned Yadkinville, North Carolina Warehouse 120,000 Owned Yadkinville, North Carolina Warehouse 82,000 Leased Yadkinville, North Carolina Warehouse 61,000 Leased Reidsville, North Carolina Manufacturing facility 384,000 Owned Reidsville, North Carolina Manufacturing facility 160,000 Owned Reidsville, North Carolina Warehouse 91,000 Leased Madison, North Carolina Warehouse 31,000 Owned Madison, North Carolina Warehouse 102,000 Leased Foreign Ciudad Arce, El Salvador Manufacturing facility 132,000 Leased Ciudad Arce, El Salvador Warehouse 59,000 Leased Bogota (Soacha), Colombia Manufacturing facility 31,000 Owned Bogota, Colombia Sales office 1,000 Leased Brazil Segment Foreign Alfenas, Brazil Manufacturing facility 360,000 Owned Alfenas, Brazil Warehouse 365,000 Owned Sao Paulo, Brazil Corporate office 13,000 Leased Asia Segment Foreign Suzhou, China Sales office 17,000 Leased Suzhou, China Warehouse 59,000 Leased Suzhou, China Warehouse 50,000 Leased Suzhou, China Warehouse 16,000 Leased Management believes all of UNIFI’s operating properties are well maintained and in good condition.
Item 2. P roperties The following table contains information about the principal properties owned or leased by UNIFI as of June 30, 2024 (not in thousands): Location Principal Use Approx. Total Area (Sq.
Item 2. P roperties The following table contains information about the principal properties owned or leased by UNIFI as of June 29, 2025 (not in thousands): Location Principal Use Approx. Total Area (Sq.
Removed
In fiscal 2024, UNIFI’s manufacturing facilities in the Americas Segment operated below capacity for most of the year, primarily due to a decline in demand throughout the apparel supply chains. Management does not perceive any capacity constraints in the foreseeable future.
Added
UNIFI sold two properties within the Americas Segment during fiscal 2025; a warehouse located in Yadkinville, North Carolina and manufacturing facility located in Madison, North Carolina. Management does not anticipate any capacity constraints in the foreseeable future.
Added
Vacant Properties In addition to the above sites, the Company owns approximately 184 acres in the Americas Segment, split approximately equally between Rockingham and Yadkin Counties and approximately 26 acres in the Brazil Segment as of June 29, 2025.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

8 edited+0 added−0 removed8 unchanged
Biggest changeBoyd joined UNIFI in 2007 and has held several other key positions, including Vice President of Brand Sales and head of the Global Business Development group. Ms. Boyd also serves on the Board of Directors for the Synthetic Yarn and Fabric Association (SYFA) and the Textile Technology Center (TTC) Advisory Council. 17 PART II
Biggest changeBoyd joined UNIFI in 2007 and has held several other key positions, including Vice President of Brand Sales and head of the Global Business Development group. Ms. Boyd also serves on the Board of Directors for the Synthetic Yarn and Fabric Association (SYFA) and the Textile Technology Center (TTC) Advisory Council. 18 PART II
Item 4. Mine Sa fety Disclosures Not applicable. 16 INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following is a description of the names and ages of the executive officers of the Company, indicating all positions and offices with the Company held by each such person and each person’s principal occupation or employment during the past five years.
Item 4. Mine Sa fety Disclosures Not applicable. 17 INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following is a description of the names and ages of the executive officers of the Company, indicating all positions and offices with the Company held by each such person and each person’s principal occupation or employment during the past five years.
Eaker is a Certified Public Accountant in North Carolina and began his career in the audit practice of KPMG LLP from 2009 to 2014. Hongjun Ning – Age: 57 – Mr. Ning has served as an Executive Vice President of UNIFI since July 2020, President of Unifi Textiles (Suzhou) Co. Ltd.
Eaker is a Certified Public Accountant in North Carolina and began his career in the audit practice of KPMG LLP from 2009 to 2014. Hongjun Ning – Age: 58 – Mr. Ning has served as an Executive Vice President of UNIFI since July 2020, President of Unifi Textiles (Suzhou) Co. Ltd.
From 2005 to 2018, Mr. Moore served as Managing Director, Asia Pacific, and as Vice President of Global Sales, Marketing, and Asian Operations for Scovill Fasteners Ltd. From 2018 to 2020, he served as Chief Executive Officer for Prym Fashion, a global manufacturer of fastening systems and accessories. Meredith S. Boyd – Age: 38 – Ms.
From 2005 to 2018, Mr. Moore served as Managing Director, Asia Pacific, and as Vice President of Global Sales, Marketing, and Asian Operations for Scovill Fasteners Ltd. From 2018 to 2020, he served as Chief Executive Officer for Prym Fashion, a global manufacturer of fastening systems and accessories. Meredith S. Boyd – Age: 39 – Ms.
Previously, he served as Vice President of UTSC from September 2013 to June 2017, Director of Sales & Marketing of UTSC from August 2008 to September 2013, and General Manager, Sales & Marketing of a former UNIFI joint venture in China from January 2006 to August 2008. Brian D. Moore – Age: 54 – Mr.
Previously, he served as Vice President of UTSC from September 2013 to June 2017, Director of Sales & Marketing of UTSC from August 2008 to September 2013, and General Manager, Sales & Marketing of a former UNIFI joint venture in China from January 2006 to August 2008. Brian D. Moore – Age: 55 – Mr.
Each executive officer of UNIFI is elected by the Board and holds office from the date of election until thereafter removed by the Board. Edmund M. Ingle – Age: 59 – Mr. Ingle has served as Chief Executive Officer of UNIFI and a member of the Board since June 2020.
Each executive officer of UNIFI is elected by the Board and holds office from the date of election until thereafter removed by the Board. Edmund M. Ingle – Age: 60 – Mr. Ingle has served as Chief Executive Officer of UNIFI and a member of the Board since June 2020.
Andrew J. (A.J.) Eaker – Age: 39 – Mr. Eaker has served as Executive Vice President and Chief Financial Officer of UNIFI since January 2024, as Treasurer of UNIFI since December 2022, and as Vice President of UNIFI's primary domestic operating subsidiary since June 2017. Mr.
Andrew J. (A.J.) Eaker – Age: 40 – Mr. Eaker has served as Executive Vice President and Chief Financial Officer of UNIFI since January 2024, as Treasurer of UNIFI since December 2022, and as Vice President of UNIFI's primary domestic operating subsidiary since June 2017. Mr.
Albert P. Carey – Age: 72 – Mr. Carey has served as Executive Chairman of the Board since April 2019. Mr. Carey previously served as Non-Executive Chairman of the Board from January 2019 to March 2019. In March 2019, Mr.
Albert P. Carey – Age: 73 – Mr. Carey has served as Executive Chairman of the Board since April 2019. Mr. Carey previously served as Non-Executive Chairman of the Board from January 2019 to March 2019. In March 2019, Mr.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+1 added−1 removed4 unchanged
Biggest changeUNIFI will continue to evaluate opportunities to use excess cash flows from operations or existing borrowings to repurchase additional stock, while maintaining sufficient liquidity to support its operational needs and to fund future strategic growth opportunities. In fiscal 2024, UNIFI withheld 12 shares in satisfaction of tax withholding obligations under net share settle transactions of stock-based compensation awards.
Biggest changeUNIFI will continue to evaluate opportunities to use excess cash flows from operations or existing borrowings to repurchase additional stock, while maintaining sufficient liquidity to support its operational needs and to fund future strategic growth opportunities.
A significant number of the outstanding shares of common stock that are beneficially owned by individuals and entities are registered in the name of Cede & Co. Cede & Co. is a nominee of The Depository Trust Company, a securities depository for banks and brokerage firms. UNIFI estimates that there are approximately 4,400 beneficial owners of its common stock.
A significant number of the outstanding shares of common stock that are beneficially owned by individuals and entities are registered in the name of Cede & Co. Cede & Co. is a nominee of The Depository Trust Company, a securities depository for banks and brokerage firms. UNIFI estimates that there are approximately 4,550 beneficial owners of its common stock.
Item 5. Market for Registrant’s Common Equity, Related Sto ckholder Matters and Issuer Purchases of Equity Securities UNIFI’s common stock is listed for trading on the New York Stock Exchange (the “NYSE”) under the symbol “UFI.” As of August 21, 2024, there were 115 record holders of UNIFI’s common stock.
Item 5. Market for Registrant’s Common Equity, Related Sto ckholder Matters and Issuer Purchases of Equity Securities UNIFI’s common stock is listed for trading on the New York Stock Exchange (the “NYSE”) under the symbol “UFI.” As of August 21, 2025, there were 110 record holders of UNIFI’s common stock.
As of June 30, 2024, UNIFI had repurchased 701 shares of its common stock at an average price of $15.90 per share, none of which occurred in fiscal 2024, leaving $38,859 available for repurchase under the 2018 SRP.
As of June 29, 2025, UNIFI had repurchased 701 shares of its common stock at an average price of $15.90 per share, none of which occurred in fiscal 2025, leaving $38,859 available for repurchase under the 2018 SRP.
In fiscal 2023, UNIFI withheld 7 shares in satisfaction of tax withholding obligations under net share settle transactions of stock-based compensation awards.
In fiscal 2025, UNIFI withheld 28 shares in satisfaction of tax withholding obligations under net share settle transactions of stock-based compensation awards ("net share settlement"). In fiscal 2024, UNIFI withheld 12 shares for net share settlement.
In fiscal 2022, UNIFI repurchased 617 shares of its common stock at an average price of $14.84 per share. 18 PERFORMANCE GRAPH - SHAREHOLDER RETURN ON COMMON STOCK The below graphic comparison assumes the investment of $100 in each of UNIFI common stock, the S&P SmallCap 600 Index (a benchmark index containing inclusion characteristics closely associated with UNIFI), and the NYSE Composite Index (a broad equity market index), all at June 28, 2019.
In fiscal 2023, UNIFI withheld 7 shares for net share settlement. 19 PERFORMANCE GRAPH - SHAREHOLDER RETURN ON COMMON STOCK The below graphic comparison assumes the investment of $100 in each of UNIFI common stock, the S&P SmallCap 600 Index (a benchmark index containing inclusion characteristics closely associated with UNIFI), and the NYSE Composite Index (a broad equity market index), all at June 26, 2020.
Removed
June 28, 2019 June 26, 2020 June 25, 2021 July 1, 2022 June 30, 2023 June 28, 2024 Unifi, Inc. $ 100.00 $ 64.23 $ 136.21 $ 77.16 $ 44.41 $ 32.42 S&P SmallCap 600 100.00 82.70 145.09 119.55 127.96 136.48 NYSE Composite 100.00 91.20 133.80 120.28 133.78 155.51
Added
June 26, 2020 June 25, 2021 July 1, 2022 June 30, 2023 June 28, 2024 June 27, 2025 Unifi, Inc. $ 100.00 $ 212.08 $ 120.14 $ 69.15 $ 50.47 $ 44.90 S&P SmallCap 600 100.00 175.43 144.56 154.72 165.03 169.79 NYSE Composite 100.00 146.72 131.89 146.69 170.51 196.53 Item 6. [Re served] 20

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

100 edited+43 added−25 removed54 unchanged
Biggest changeFiscal 2024 Pre-tax Loss Tax Impact Net Loss Diluted EPS GAAP results $ (45,537 ) $ (1,858 ) $ (47,395 ) $ (2.61 ) Loss on joint venture dissolution (1) 2,750 — 2,750 0.15 Severance (2) 2,351 — 2,351 0.13 Adjusted results $ (40,436 ) $ (1,858 ) $ (42,294 ) $ (2.33 ) Weighted average common shares outstanding 18,154 Fiscal 2023 Pre-tax Loss Tax Impact Net Loss Diluted EPS GAAP results $ (45,443 ) $ (901 ) $ (46,344 ) $ (2.57 ) Asset abandonment (3) 8,247 — 8,247 0.46 Contract modification costs (4) 623 — 623 0.03 Recovery of income taxes (5) — (3,799 ) (3,799 ) (0.21 ) Adjusted results $ (36,573 ) $ (4,700 ) $ (41,273 ) $ (2.29 ) Weighted average common shares outstanding 18,037 Fiscal 2022 Pre-tax Income Tax Impact Net Income Diluted EPS GAAP results $ 26,828 $ (11,657 ) $ 15,171 $ 0.80 Recovery of non-income taxes, net (6) 815 (257 ) 558 0.03 Recovery of income taxes, net (7) — (1,446 ) (1,446 ) (0.07 ) Adjusted results $ 27,643 $ (13,360 ) $ 14,283 $ 0.76 Weighted average common shares outstanding 18,868 (1) In the second quarter of fiscal 2024, UNIFI recorded a loss of $2,750 related to the dissolution of a nylon joint venture.
Biggest changeFiscal 2025 Pre-tax Loss Tax Impact Net Loss Diluted EPS GAAP results $ (18,629 ) $ (1,719 ) $ (20,348 ) $ (1.11 ) Transition costs (1) 13,485 — 13,485 0.74 Gain on sales of assets (2) (40,103 ) — (40,103 ) (2.19 ) Recovery of income taxes (3) — (893 ) (893 ) (0.05 ) Adjusted results $ (45,247 ) $ (2,612 ) $ (47,859 ) $ (2.61 ) Weighted average common shares outstanding 18,314 Fiscal 2024 Pre-tax Loss Tax Impact Net Loss Diluted EPS GAAP results $ (45,537 ) $ (1,858 ) $ (47,395 ) $ (2.61 ) Restructuring costs (4) 5,101 — 5,101 0.28 Adjusted results $ (40,436 ) $ (1,858 ) $ (42,294 ) $ (2.33 ) Weighted average common shares outstanding 18,154 Fiscal 2023 Pre-tax Loss Tax Impact Net Loss Diluted EPS GAAP results $ (45,443 ) $ (901 ) (46,344 ) $ (2.57 ) Asset abandonment (5) 8,247 — 8,247 0.46 Contract modification costs (6) 623 — 623 0.03 Recovery of income taxes (7) — (3,799 ) (3,799 ) (0.21 ) Adjusted results $ (36,573 ) $ (4,700 ) $ (41,273 ) $ (2.29 ) Weighted average common shares outstanding 18,037 (1) In fiscal 2025, UNIFI incurred various transition costs totaling $13,485 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs (including asset impairments and disposals) of $5,896, (ii) inventory write-downs of $2,923, (iii) excess fixed manufacturing costs of $1,638, (iv) employee separation or retention costs of $1,580, and (v) forfeitures of deposits for texturing machinery of $1,448.
These performance indicators form the basis of management’s discussion and analysis included below: • sales volume and revenue for UNIFI and for each reportable segment; • gross profit and gross margin for UNIFI and for each reportable segment; • net (loss) income and (loss) earnings per share ("EPS"); • Segment (Loss) Profit, which equals segment gross (loss) profit plus segment depreciation expense; • unit conversion margin, which represents unit net sales price less unit raw material costs, for UNIFI and for each reportable segment; • working capital, which represents current assets less current liabilities; • Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), which represents net (loss) income before net interest expense, income tax expense and depreciation and amortization expense; • Adjusted EBITDA, which represents EBITDA adjusted to exclude, from time to time, certain other adjustments necessary to understand and compare the underlying results of UNIFI; • Adjusted Net (Loss) Income, which represents net (loss) income calculated under GAAP, adjusted to exclude certain amounts which management believes do not reflect the ongoing operations and performance of UNIFI and/or for which exclusion may be necessary to understand and compare the underlying results of UNIFI; • Adjusted EPS, which represents Adjusted Net (Loss) Income divided by UNIFI’s weighted average common shares outstanding; • Adjusted Working Capital, which equals receivables plus inventories and other current assets, less accounts payable and other current liabilities; and • Net Debt, which represents debt principal less cash and cash equivalents.
These performance indicators form the basis of management’s discussion and analysis included below: • sales volume and revenue for UNIFI and for each reportable segment; • gross profit (loss) and gross margin for UNIFI and for each reportable segment; • net (loss) income and (loss) earnings per share ("EPS"); • Segment (Loss) Profit, which equals segment gross (loss) profit plus segment depreciation expense; • unit conversion margin, which represents unit net sales price less unit raw material costs, for UNIFI and for each reportable segment; • working capital, which represents current assets less current liabilities; • Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), which represents net (loss) earnings before net interest expense, income tax expense and depreciation and amortization expense; • Adjusted EBITDA, which represents EBITDA adjusted to exclude, from time to time, certain other adjustments necessary to understand and compare the underlying results of UNIFI; • Adjusted Net (Loss) Income, which represents net loss calculated under GAAP, adjusted to exclude certain amounts which management believes do not reflect the ongoing operations and performance of UNIFI and/or for which exclusion may be necessary to understand and compare the underlying results of UNIFI; • Adjusted EPS, which represents Adjusted Net (Loss) Income divided by UNIFI’s weighted average common shares outstanding; • Adjusted Working Capital, which equals receivables plus inventories and other current assets, less accounts payable and other current liabilities; and • Net Debt, which represents debt principal less cash and cash equivalents.
Gross Profit Fiscal 2024 vs. Fiscal 2023 Gross profit for fiscal 2024 increased by $2,375, or 16.7%, compared to fiscal 2023. Gross profit increased primarily due to (i) increased sales volumes, (ii) variable cost saving initiatives, (iii) improved productivity, and (iv) more stable raw material costs. These were partially offset by (a) higher manufacturing costs and (b) lower conversion margins.
Fiscal 2023 Gross profit for fiscal 2024 increased by $2,375, or 16.7%, compared to fiscal 2023. Gross profit increased primarily due to (i) increased sales volumes, (ii) variable cost saving initiatives, (iii) improved productivity, and (iv) more stable raw material costs. These were partially offset by (a) higher manufacturing costs and (b) lower conversion margins.
However, further degradation in the macroeconomic environment could introduce additional liquidity risk and require UNIFI to limit cash outflows while further utilizing available and additional forms of credit. Cash Provided by Operating Activities The significant components of net cash provided by operating activities are summarized below.
However, further degradation in the macroeconomic environment could introduce additional liquidity risk and require UNIFI to limit cash outflows while further utilizing available and additional forms of credit. Cash (Used) Provided by Operating Activities The significant components of net cash (used) provided by operating activities are summarized below.
Consolidated Overview The below tables provide: • the components of net (loss) income and the percentage increase or decrease over the prior fiscal year amounts, • a reconciliation from net (loss) income to EBITDA and Adjusted EBITDA, and • a reconciliation from net (loss) income to Adjusted Net (Loss) Income and Adjusted EPS.
Consolidated Overview The below tables provide: • the components of net loss and the percentage increase or decrease over the prior fiscal year amounts, • a reconciliation from net loss to EBITDA and Adjusted EBITDA, and • a reconciliation from net loss to Adjusted Net Loss and Adjusted EPS.
Additionally, UNIFI considers opportunities to repatriate existing cash to reduce debt and preserve or enhance liquidity. In fiscal 2023 and 2024, we repatriated approximately $19,000 and $32,000, respectively, from our operations in Asia and Brazil to the U.S. and, after remitting the appropriate withholding taxes, utilized the cash to reduce our outstanding revolver borrowings, thereby increasing the availability.
Additionally, UNIFI considers opportunities to repatriate existing cash to reduce debt and preserve or enhance liquidity. In fiscal 2023, 2024, and 2025, we repatriated approximately $19,000, $32,000, and $15,000, respectively, from our operations in Asia and Brazil to the U.S. and, after remitting the appropriate withholding taxes, utilized the cash to reduce our outstanding revolver borrowings, thereby increasing the availability.
UNIFI’s primary sources of capital are cash generated from operations and borrowings available under the 2022 ABL Revolver (as defined below) of the 2022 ABL Facility (as defined below).
UNIFI’s primary sources of capital are cash generated from operations, borrowings available under the 2022 ABL Revolver (as defined below) of the 2022 ABL Facility (as defined below) and the 2024 Facility (as defined below).
The 2022 Credit Agreement provides for a $230,000 senior secured credit facility (the “2022 ABL Facility”), including a $115,000 revolving credit facility (the "2022 ABL Revolver") and a term loan (the "2022 ABL Term Loan") that can be reset up to a maximum amount of $115,000, once per fiscal year, if certain conditions are met.
The 2022 Credit Agreement provided for a $230,000 senior secured credit facility (the “2022 ABL Facility”), including a $115,000 revolving credit facility (the "2022 ABL Revolver") and a term loan (the "2022 ABL Term Loan") that can be reset up to a maximum amount of $115,000, once per fiscal year, if certain conditions are met.
Following the tables is a discussion and analysis of the significant components of net (loss) income.
Following the tables is a discussion and analysis of the significant components of net loss.
As of June 30, 2024, UNIFI had repurchased 701 shares of its common stock at an average price of $15.90 per share, none of which occurred in fiscal 2024, leaving $38,859 available for repurchases under the 2018 SRP.
As of June 29, 2025, UNIFI had repurchased 701 shares of its common stock at an average price of $15.90 per share, none of which occurred in fiscal 2024, leaving $38,859 available for repurchases under the 2018 SRP.
Additionally, the effects of discrete and other rate impacting items are more pronounced when income before income taxes is lower. Fiscal 2024 vs.
Additionally, the effects of discrete and other rate impacting items are more pronounced when income before income taxes is lower. Fiscal 2025 vs.
The contract modification was executed at a cost to UNIFI of $623 and allowed UNIFI to delay the associated equipment purchases and installation activities for 18 months, deferring approximately $25,000 of capital expenditures. In December 2023, UNIFI extended this delay by an additional 12 months at no cost to the Company.
The contract modification was executed at a cost to UNIFI of $623 and allowed UNIFI to delay the associated equipment purchases and installation activities for 18 months, deferring approximately $25,000 of capital expenditures. In fiscal 2024, UNIFI extended this delay by an additional 12 months at no cost to the Company.
Borrowings under the 2022 ABL Facility bear interest at the Secured Overnight Financing Rate ("SOFR") plus 0.10% plus an applicable margin of 1.25% to 1.75%, or the Base Rate (as defined in the 2022 Credit Agreement) plus an applicable margin of 0.25% to 0.75%, with interest paid most commonly on a monthly basis.
Borrowings under the 2022 ABL Facility bear interest at the Secured Overnight Financing Rate ("SOFR") plus 0.10% plus an applicable margin of 2.0%, or the Base Rate (as defined in the 2022 Credit Agreement) plus an applicable margin of 1.0%, with interest paid most commonly on a monthly basis.
UNIFI considers $41,644 of its unremitted foreign earnings to be permanently reinvested to fund working capital requirements and operations abroad, and has therefore not recognized a deferred tax liability for the estimated future taxes that would be incurred upon repatriation.
UNIFI considers $42,505 of its unremitted foreign earnings to be permanently reinvested to fund working capital requirements and operations abroad, and has therefore not recognized a deferred tax liability for the estimated future taxes that would be incurred upon repatriation.
Despite sales volume improvements in each of the reportable segments, volumes remain depressed, particularly in the Americas and Asia Segments as a result of continued weak global demand. Consolidated weighted average sales prices decreased 14.8% which drove the decrease in net sales.
Despite sales volume improvements in each of the reportable segments, volumes remain depressed, particularly in the Americas and Asia Segments as a result of continued customer-demand headwinds. Consolidated weighted average sales prices decreased 14.8% which drove the decrease in net sales.
Such obligations, predominantly related to ongoing operations and service contracts in support of normal course business, range from approximately $1,000 to $10,000 per annum and vary based on the renewal timing of specific commitments and the range of services received. • Non-capital purchase orders totaled approximately $78,163 at the end of fiscal 2024 and are expected to be settled in fiscal 2025.
Such obligations, predominantly related to ongoing operations and service contracts in support of normal course business, range from approximately $1,000 to $10,000 per annum and vary based on the renewal timing of specific commitments and the range of services received. • Non-capital purchase orders totaled approximately $13,218 at the end of fiscal 2025 and are expected to be settled in fiscal 2026.
A plus or minus 10% change in the inventory net realizable value adjustment would not have been material to UNIFI’s consolidated financial statements for the past three fiscal years. June 30, 2024 July 2, 2023 July 3, 2022 Net realizable value adjustment $ (3,813 ) $ (5,625 ) $ (3,487 )
A plus or minus 10% change in the inventory net realizable value adjustment would not have been material to UNIFI’s consolidated financial statements for the past three fiscal years. June 29, 2025 June 30, 2024 July 2, 2023 Net realizable value adjustment $ (3,964 ) $ (3,813 ) $ (5,625 )
Near the end of fiscal 2020, we divested a minority interest investment and significantly improved our liquidity position, supporting business preservation and the ability to capture long-term growth opportunities. • Throughout fiscal 2021, our businesses experienced sequential improvement alongside global demand and economic recovery, and we capitalized on profitable opportunities that fueled strong consolidated results. • Throughout fiscal 2022, we experienced adverse pressure from rising input costs and a weakening of labor productivity, primarily in our domestic operations. • Throughout fiscal 2023, we experienced a downturn in global textile demand as brands and retailers began to destock their inventory levels. • Throughout fiscal 2024, global textile demand remained weak, particularly in the Americas and Asia Segments with reduced overall order levels.
Near the end of fiscal 2020, we divested a minority interest investment and significantly improved our liquidity position, supporting business preservation and the ability to capture long-term growth opportunities. • Throughout fiscal 2021, our businesses experienced sequential improvement alongside global demand and economic recovery, and we capitalized on profitable opportunities that fueled strong consolidated results. • Throughout fiscal 2022, we experienced adverse pressure from rising input costs and a weakening of labor productivity, primarily in our domestic operations. • Throughout fiscal 2023, we experienced a downturn in global textile demand as brands and retailers began to destock their inventory levels. • Throughout fiscal 2024, global textile demand remained weak, particularly in the Americas and Asia Segments with reduced overall order levels. • Throughout fiscal 2025, inflationary pressures and uncertainty over global trade policies resulted in volatility and customer-demand headwinds, particularly in the Americas and Asia Segments.
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.
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 manufacturing utilization and adversely impacts gross profit and gross margin.
Fiscal 2023 The decrease in the effective tax rate from fiscal 2023 to fiscal 2024 was primarily attributable to a discrete tax benefit recognized in fiscal 2023 related to the recovery of certain Brazilian income taxes paid in prior years. Fiscal 2023 vs.
Fiscal 2023 The decrease in the effective tax rate from fiscal 2023 was primarily attributable to a discrete tax benefit recognized in fiscal 2023 related to the recovery of certain Brazilian income taxes paid in prior years. Net Loss Fiscal 2025 vs.
If these earnings were distributed in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, UNIFI could be subject to additional tax liabilities of approximately $10,906. Liquidity Considerations Inflationary pressures and demand uncertainty throughout fiscal 2022, 2023, and 2024 created risks to UNIFI's liquidity.
If these earnings were distributed in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, UNIFI could be subject to additional tax liabilities of approximately $11,193. Liquidity Considerations Inflationary pressures and demand uncertainty throughout fiscal 2023, 2024, and 2025 created risks to UNIFI's liquidity.
The additional assets from these capital projects consist primarily of machinery and equipment. 34 Share Repurchase Program On October 31, 2018, UNIFI announced that the Board approved the 2018 SRP under which UNIFI is authorized to acquire up to $50,000 of its common stock.
UNIFI expects recent and future capital projects to provide benefits to future profitability. The additional assets from these capital projects consist primarily of machinery and equipment. Share Repurchase Program On October 31, 2018, UNIFI announced that the Board approved the 2018 SRP under which UNIFI is authorized to acquire up to $50,000 of its common stock.
Fiscal 2023 The provision (benefit) for bad debts changed from a benefit of $89 in fiscal 2023 to a provision of $1,571 in fiscal 2024 that reflects the provision for a specifically identified customer balance originating in the U.S. fiber market. Fiscal 2023 vs.
Fiscal 2023 The provision (benefit) for bad debts changed to a provision of $1,571 in fiscal 2024 from a benefit of $89 in fiscal 2023 due to the provision recorded for a specifically identified customer balance originating in the U.S. fiber market.
In connection with this construction financing arrangement, UNIFI has borrowed a total of $9,755 and transitioned $9,755 of completed asset costs to finance lease obligations as of June 30, 2024. Scheduled Debt Maturities The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the following five fiscal years and thereafter.
In connection with this construction financing arrangement, UNIFI has borrowed a total of $9,755 and transitioned $9,755 of completed asset costs to finance lease obligations as of June 29, 2025. No borrowings occurred during fiscal 2025. Scheduled Debt Maturities The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the following five fiscal years and thereafter.
Fiscal 2023 also includes (i) $8,247 of impairment related to the abandonment of certain machinery constructed in fiscal 2017 and (ii) $623 paid to a vendor to facilitate an 18-month delay for equipment purchases. There was no meaningful activity in fiscal 2022. Interest Expense, Net Fiscal 2024 vs. Fiscal 2023 Interest expense, net increased from fiscal 2023 to fiscal 2024.
Fiscal 2023 also includes (i) $8,247 of impairment related to the abandonment of certain machinery constructed in fiscal 2017 and (ii) $623 paid to a vendor to facilitate an 18-month delay for equipment purchases. 27 Interest Expense, Net Fiscal 2025 vs. Fiscal 2024 Interest expense, net increased from fiscal 2024.
As of June 30, 2024, UNIFI was in compliance with all financial covenants in the 2022 Credit Agreement; excess availability under the 2022 ABL Revolver was $40,832 and UNIFI had $0 of standby letters of credit. Management maintains the capability to improve the fixed charge coverage ratio utilizing existing foreign cash and cash equivalents.
As of June 29, 2025, UNIFI was in compliance with all financial covenants in the 2022 Credit Agreement; excess availability under the 2022 ABL Revolver was $46,526 and UNIFI had $0 of standby letters of credit. Management maintains the capability to improve the fixed charge coverage ratio utilizing existing foreign cash and cash equivalents.
(4) In fiscal 2023, UNIFI amended certain existing contracts related to future purchases of texturing machinery by delaying the scheduled receipt and installation of such equipment in the U.S. and El Salvador for 18 months. UNIFI paid the associated vendor $623 to establish the 18-month delay.
(6) In fiscal 2023, UNIFI amended certain existing contracts related to future purchases of texturing machinery by delaying the scheduled receipt and installation of such equipment for approximately 18 months. UNIFI paid the associated vendor $623 to establish the 18-month delay.
Significant financing activities included $7,600 of net payments against the 2022 ABL Facility, along with $3,001 of payments on finance lease obligations. Fiscal 2023 Significant investing activities included $36,434 for capital expenditures (as described above). Significant financing activities included $22,200 of net borrowings against the 2022 ABL Facility, along with $2,123 of payments on finance lease obligations.
Fiscal 2024 Significant investing activities included $11,189 for capital expenditures (as described above). Significant financing activities included $7,600 of net payments against the 2022 ABL Facility, along with $3,001 of payments on finance lease obligations. Fiscal 2023 Significant investing activities included $36,434 for capital expenditures (as described above).
In fiscal 2023, UNIFI invested $36,434 in capital projects, primarily relating to (i) texturing machinery, (ii) further improvements in production capabilities and technological enhancements in the Americas, and (iii) routine annual maintenance capital expenditures.
In fiscal 2023, UNIFI invested $36,434 in capital projects, primarily relating to (i) texturing machinery, (ii) further improvements in production capabilities and technological enhancements in the Americas, and (iii) routine annual maintenance capital expenditures. 35 In fiscal 2026, UNIFI expects to invest between $8,000 and $12,000 in capital projects, primarily relating to routine annual maintenance capital expenditures.
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. • For the Americas Segment, gross profit declined primarily due to (i) higher manufacturing costs and (ii) lower conversion margins.
However, gross profit continues to be unfavorably impacted by low manufacturing utilization in the Americas Segment, where utilization and productivity remain below expected levels due to depressed demand. • For the Americas Segment, gross profit declined primarily due to (i) higher manufacturing costs and (ii) lower conversion margins.
The associated tax impact was estimated to be $0 due to (i) a valuation allowance against net operating losses in the U.S. and (ii) UNIFI's effective tax rate in El Salvador.
UNIFI paid the associated vendor $623 to establish the 18-month delay. The associated tax impact was estimated to be $0 due to (i) a valuation allowance against net operating losses in the U.S. and (ii) UNIFI's effective tax rate in El Salvador.
If excess availability under the 2022 ABL Revolver falls below the Trigger Level (as defined in the 2022 Credit Agreement), a financial covenant requiring the Loan Parties to maintain a fixed charge coverage ratio on a quarterly basis of at least 1.05 to 1.00 becomes effective. The Trigger Level as of June 30, 2024 was $21,620.
If excess availability under the 2022 ABL Revolver falls below the Trigger Level (as defined in the First Amendment), a financial covenant requiring the Loan Parties to maintain a fixed charge coverage ratio on a quarterly basis of at least 1.05 to 1.00 becomes effective. The Trigger Level as of June 29, 2025 was $16,500.
Working capital and Adjusted Working Capital are within the range of management’s expectations based on the composition of the underlying business and global structure. The decrease in receivables, net was primarily due to a decrease in sales and the timing of cash receipts. The decrease in inventories was primarily attributable to concerted efforts to reduce inventory levels.
Working capital and Adjusted Working Capital are within the range of management’s expectations based on the composition of the underlying business and global structure. The decrease in receivables, net was primarily due to the overall decrease in sales and the timing of cash receipts.
Upon review of each ASU issued by the FASB through the date of this report, UNIFI identified no other newly issued accounting pronouncements that are expected to have a significant impact on UNIFI’s consolidated financial statements.
Upon review of each ASU issued by the FASB through the date of this report, UNIFI identified no other newly issued accounting pronouncements that are expected to have a significant impact on UNIFI’s consolidated financial statements. 37 Recently Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures .
Americas Segment The components of Segment Profit and the percentage increase or decrease over the prior period amounts for the Americas Segment are as follows: Fiscal 2024 % Change Fiscal 2023 % Change Fiscal 2022 Net sales $ 344,256 (11.7 ) $ 389,662 (19.3 ) $ 483,085 Cost of sales 361,886 (10.5 ) 404,321 (11.8 ) 458,617 Gross (loss) profit (17,630 ) 20.3 (14,659 ) (159.9 ) 24,468 Depreciation expense 22,154 0.5 22,044 4.2 21,153 Segment Profit $ 4,524 (38.7 ) $ 7,385 (83.8 ) $ 45,621 Gross margin (5.1 )% (3.8 )% 5.1 % Segment margin 1.3 % 1.9 % 9.4 % Segment net sales as a percentage of consolidated amount 59.1 % 62.5 % 59.2 % Segment Profit as a percentage of consolidated amount 10.8 % 19.3 % 44.2 % The changes in net sales for the Americas Segment are as follows: Net sales for fiscal 2022 $ 483,085 Decrease in sales volumes (92,593 ) Decrease due to an additional week of sales in fiscal 2022 (8,703 ) Net change in average selling price and sales mix 7,873 Net sales for fiscal 2023 $ 389,662 Net sales for fiscal 2023 $ 389,662 Net change in average selling price and sales mix (58,661 ) Increase in sales volumes 13,255 Net sales for fiscal 2024 $ 344,256 The decrease in net sales for the Americas Segment from fiscal 2023 to fiscal 2024 was primarily attributable to the net change in average selling price and sales mix that included lower raw material input costs, partially offset by an increase in sales volumes.
Americas Segment The components of Segment Profit and the percentage increase or decrease over the prior period amounts for the Americas Segment are as follows: Fiscal 2025 % Change Fiscal 2024 % Change Fiscal 2023 Net sales $ 347,931 1.1 $ 344,256 (11.7 ) $ 389,662 Cost of sales 368,148 1.7 361,886 (10.5 ) 404,321 Gross loss (20,217 ) 14.7 (17,630 ) 20.3 (14,659 ) Depreciation expense 21,003 (5.2 ) 22,154 0.5 22,044 Segment Profit $ 786 (82.6 ) $ 4,524 (38.7 ) $ 7,385 Gross margin (5.8 )% (5.1 )% (3.8 )% Segment margin 0.2 % 1.3 % 1.9 % Segment net sales as a percentage of consolidated amount 60.9 % 59.1 % 62.5 % Segment Profit as a percentage of consolidated amount 2.4 % 10.8 % 19.3 % The changes in net sales for the Americas Segment are as follows: Net sales for fiscal 2023 $ 389,662 Net change in average selling price and sales mix (58,661 ) Increase in sales volumes 13,255 Net sales for fiscal 2024 $ 344,256 Net sales for fiscal 2024 $ 344,256 Net change in average selling price and sales mix 1,843 Increase in sales volumes 1,832 Net sales for fiscal 2025 $ 347,931 The increase in net sales for the Americas Segment from fiscal 2024 to fiscal 2025 was primarily attributable to higher sales volumes, partially offset by a lower-priced sales mix.
The changes in Segment Profit for the Brazil Segment are as follows: Segment Profit for fiscal 2022 $ 28,641 Decrease in underlying margins (17,494 ) Increase in sales volumes 2,594 Favorable foreign currency translation effects 456 Segment Profit for fiscal 2023 $ 14,197 Segment Profit for fiscal 2023 $ 14,197 Increase in sales volumes 1,942 Increase in underlying unit margins 1,225 Favorable foreign currency translation effects 648 Segment Profit for fiscal 2024 $ 18,012 The increase in Segment Profit for the Brazil Segment from fiscal 2023 to fiscal 2024 was primarily attributable to (i) increases in sales volumes as discussed above, (ii) improved conversion margins, and (ii) favorable foreign currency translation effects.
The changes in Segment Profit for the Brazil Segment are as follows: Segment Profit for fiscal 2023 $ 14,197 Increase in sales volumes 1,942 Increase in underlying unit margins 1,225 Favorable foreign currency translation effects 648 Segment Profit for fiscal 2024 $ 18,012 Segment Profit for fiscal 2024 $ 18,012 Increase in underlying unit margins 2,198 Increase in sales volumes 688 Unfavorable foreign currency translation effects (2,100 ) Segment Profit for fiscal 2025 $ 18,798 The increase in Segment Profit for the Brazil Segment from fiscal 2024 to fiscal 2025 was primarily attributable to (i) higher conversion margins and (ii) an increase in sales volumes discussed above, partially offset by unfavorable foreign currency translation effects.
Adjusted EBITDA (Non-GAAP Financial Measure) Adjusted EBITDA decreased from $(4,085) for fiscal 2023 to $(5,197) for fiscal 2024, primarily due to higher bad debt expense, lower earnings from unconsolidated affiliates, and other operating expenses net. Adjusted EBITDA decreased from $55,190 for fiscal 2022 to $(4,085) for fiscal 2023, primarily in connection with the decrease in gross profit.
Adjusted EBITDA decreased from $(4,085) for fiscal 2023 to $(5,197) for fiscal 2024, primarily due to higher bad debt expense, lower earnings from unconsolidated affiliates, and other operating expenses, net.
During fiscal 2023, UNIFI entered into finance lease obligations totaling $5,629 for texturing machines. The maturity dates of these obligations occur during fiscal 2028 with interest rates between 4.4% and 6.2%.
The maturity dates of these obligations range from March 2028 to August 2032 with interest rates ranging from 4.2% to 5.4%. During fiscal 2024, UNIFI entered into finance lease obligations totaling $1,633 for texturing machines. The maturity dates of these obligations occur during fiscal 2029 with interest rates between 6.6% and 6.9%.
Recently Adopted There have been no newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a significant impact on UNIFI’s consolidated financial statements. 36 Off-Balance Sheet Arrangements UNIFI is not a party to any off-balance sheet arrangements that have had, or are reasonably likely to have, a current or future material effect on UNIFI’s financial condition, results of operations, liquidity, or capital expenditures.
Off-Balance Sheet Arrangements UNIFI is not a party to any off-balance sheet arrangements that have had, or are reasonably likely to have, a current or future material effect on UNIFI’s financial condition, results of operations, liquidity, or capital expenditures.
The difference in fiscal weeks was not meaningful to Segment Profit. 28 Brazil Segment The components of Segment Profit and the percentage increase or decrease over the prior period amounts for the Brazil Segment are as follows: Fiscal 2024 % Change Fiscal 2023 % Change Fiscal 2022 Net sales $ 117,783 (1.1 ) $ 119,062 (5.6 ) $ 126,066 Cost of sales 103,028 (3.6 ) 106,900 8.1 98,925 Gross profit 14,755 21.3 12,162 (55.2 ) 27,141 Depreciation expense 3,257 60.0 2,035 35.7 1,500 Segment Profit $ 18,012 26.9 $ 14,197 (50.4 ) $ 28,641 Gross margin 12.5 % 10.2 % 21.5 % Segment margin 15.3 % 11.9 % 22.7 % Segment net sales as a percentage of consolidated amount 20.2 % 19.1 % 15.5 % Segment Profit as a percentage of consolidated amount 42.8 % 37.0 % 27.8 % The changes in net sales for the Brazil Segment are as follows: Net sales for fiscal 2022 $ 126,066 Decrease in average selling price and change in sales mix (19,862 ) Increase in sales volumes 11,373 Favorable foreign currency translation effects 1,485 Net sales for fiscal 2023 $ 119,062 Net sales for fiscal 2023 $ 119,062 Decrease in average selling price and change in sales mix (21,723 ) Increase in sales volumes 16,137 Favorable foreign currency translation effects 4,307 Net sales for fiscal 2024 $ 117,783 The decrease in net sales for the Brazil Segment from fiscal 2023 to fiscal 2024 was primarily attributable to lower average selling prices due to pressure from low-priced import competition, partially offset by (i) an improvement in sales volumes from market share gains and (ii) favorable foreign currency translation effects from the strengthening of the BRL versus the USD.
Brazil Segment The components of Segment Profit and the percentage increase or decrease over the prior period amounts for the Brazil Segment are as follows: Fiscal 2025 % Change Fiscal 2024 % Change Fiscal 2023 Net sales $ 118,726 0.8 $ 117,783 (1.1 ) $ 119,062 Cost of sales 102,699 (0.3 ) 103,028 (3.6 ) 106,900 Gross profit 16,027 8.6 14,755 21.3 12,162 Depreciation expense 2,771 (14.9 ) 3,257 60.0 2,035 Segment Profit $ 18,798 4.4 $ 18,012 26.9 $ 14,197 Gross margin 13.5 % 12.5 % 10.2 % Segment margin 15.8 % 15.3 % 11.9 % Segment net sales as a percentage of consolidated amount 20.8 % 20.2 % 19.1 % Segment Profit as a percentage of consolidated amount 58.3 % 42.8 % 37.0 % The changes in net sales for the Brazil Segment are as follows: Net sales for fiscal 2023 $ 119,062 Decrease in average selling price and change in sales mix (21,723 ) Increase in sales volumes 16,137 Favorable foreign currency translation effects 4,307 Net sales for fiscal 2024 $ 117,783 Net sales for fiscal 2024 $ 117,783 Increase in average selling price and change in sales mix 10,735 Increase in sales volumes 4,476 Unfavorable foreign currency translation effects (14,268 ) Net sales for fiscal 2025 $ 118,726 The increase in net sales for the Brazil Segment from fiscal 2024 to fiscal 2025 was primarily attributable to (i) higher average selling prices in response to increasing raw material costs and (ii) an improvement in sales volumes from market share gains, mostly offset by unfavorable foreign currency translation effects from the weakening of the BRL versus the USD.
The changes in Segment Profit for the Americas Segment are as follows: Segment Profit for fiscal 2022 $ 45,621 Change in underlying margins and sales mix (29,492 ) Decrease in sales volumes (8,744 ) Segment Profit for fiscal 2023 $ 7,385 Segment Profit for fiscal 2023 $ 7,385 Change in underlying margins and sales mix (3,112 ) Increase in sales volumes 251 Segment Profit for fiscal 2024 $ 4,524 The decrease in Segment Profit for the Americas Segment from fiscal 2023 to fiscal 2024 was primarily attributable to (i) higher manufacturing costs and (ii) lower conversion margins.
The changes in Segment Profit for the Americas Segment are as follows: Segment Profit for fiscal 2023 $ 7,385 Change in underlying margins and sales mix (3,112 ) Increase in sales volumes 251 Segment Profit for fiscal 2024 $ 4,524 Segment Profit for fiscal 2024 $ 4,524 Change in underlying margins and sales mix (3,738 ) Segment Profit for fiscal 2025 $ 786 The decrease in Segment Profit for the Americas Segment from fiscal 2024 to fiscal 2025 was primarily attributable to lower than anticipated manufacturing utilization and inconsistent productivity, along with transition costs related to the consolidation of yarn manufacturing operations. 29 The decrease in Segment Profit for the Americas Segment from fiscal 2023 to fiscal 2024 was primarily attributable to (i) higher manufacturing costs and (ii) lower conversion margins.
Fiscal 2022 Other operating expense, net was $7,856 in fiscal 2023 and $733 in fiscal 2024, which includes foreign currency transaction gains in fiscal 2023 and foreign currency transaction losses in fiscal 2024.
There was no meaningful activity in fiscal 2024 or 2023. Other Operating Expense, Net Fiscal 2025 vs. Fiscal 2024 vs. Fiscal 2023 There was no meaningful activity in fiscal 2025. Other operating expense, net was $733 in fiscal 2024 and $7,856 in fiscal 2023, which include foreign currency transaction gains and losses.
(3) In the second quarter of fiscal 2024, UNIFI incurred severance costs in connection with the Profitability Improvement Plan in the U.S. (4) In fiscal 2023, UNIFI abandoned certain specialized machinery in the Americas and recorded an impairment charge.
(4) In 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. (5) In fiscal 2023, UNIFI abandoned certain specialized machinery in the Americas and recorded an impairment charge.
The increase was attributable to higher average borrowings on the revolving credit facility combined with higher average interest rates in fiscal 2024. Interest expense, net for fiscal 2023 includes a $273 loss on debt extinguishment. Fiscal 2023 vs. Fiscal 2022 Interest expense, net increased from fiscal 2022 to fiscal 2023.
The increase was attributable to higher average borrowings on the revolving credit facility combined with higher average interest rates in fiscal 2024. Fiscal 2023 also includes a $273 loss on debt extinguishment. Loss (Earnings) from Unconsolidated Affiliates There was no material activity for fiscal 2025, 2024, and 2023.
Following the establishment of the 2022 Credit Agreement, UNIFI’s cash and liquidity positions are considered sufficient to sustain its operations and meet its growth needs. However, further degradation in the macroeconomic environment could introduce additional liquidity risk and require UNIFI to limit cash outflows for discretionary activities while further utilizing available and additional forms of credit.
However, further degradation in the macroeconomic environment could introduce additional liquidity risk and require UNIFI to limit cash outflows for discretionary activities while further utilizing available and additional forms of credit.
During fiscal 2022, UNIFI reduced the estimated recovery by $815 based on additional clarity and the review of the recovery process during the months following the associated SFC decision. 26 Provision for Income Taxes The change in consolidated income taxes is as follows: Fiscal 2024 Fiscal 2023 Fiscal 2022 (Loss) income before income taxes $ (45,537 ) $ (45,443 ) $ 26,828 Provision for income taxes 1,858 901 11,657 Effective tax rate (4.1 )% (2.0 )% 43.5 % The effective tax rate is subject to variation due to a number of factors, including: variability in pre-tax and taxable income; the mix of income by jurisdiction; changes in deferred tax valuation allowances; and changes in audit adjustments, statutes, regulations, and case law.
Provision for Income Taxes The change in consolidated income taxes is as follows: Fiscal 2025 Fiscal 2024 Fiscal 2023 Loss before income taxes $ (18,629 ) $ (45,537 ) $ (45,443 ) Provision for income taxes 1,719 1,858 901 Effective tax rate (9.2 )% (4.1 )% (2.0 )% The effective tax rate is subject to variation due to a number of factors, including: variability in pre-tax and taxable income; the mix of income by jurisdiction; changes in deferred tax valuation allowances; and changes in audit adjustments, statutes, regulations, and case law.
In fiscal 2022, UNIFI invested $39,631 in capital projects, primarily relating to (i) texturing machinery, (ii) further improvements in production capabilities and technological enhancements in the Americas, and (iii) routine annual maintenance capital expenditures.
In fiscal 2025, UNIFI invested $10,488 in capital projects, primarily relating to (i) modifications of machinery with the consolidation of yarn manufacturing operations, (ii) further improvements in production capabilities and technological enhancements in the Americas, and (iii) routine annual maintenance capital expenditures.
Fiscal 2024 Fiscal 2023 Fiscal 2022 Net (loss) income $ (47,395 ) $ (46,344 ) $ 15,171 Interest expense, net 7,726 5,468 1,561 Provision for income taxes 1,858 901 11,657 Depreciation and amortization expense (1) 27,513 27,020 25,986 EBITDA (10,298 ) (12,955 ) 54,375 Loss on joint venture dissolution (2) 2,750 — — Severance (3) 2,351 — — Asset abandonment (4) — 8,247 — Contract modification costs (5) — 623 — Recovery of non-income taxes, net (6) — — 815 Adjusted EBITDA $ (5,197 ) $ (4,085 ) $ 55,190 (1) Within this reconciliation, depreciation and amortization expense excludes the amortization of debt issuance costs, which are reflected in interest expense, net.
Fiscal 2025 Fiscal 2024 Fiscal 2023 Net loss $ (20,348 ) $ (47,395 ) $ (46,344 ) Interest expense, net 8,632 7,726 5,468 Provision for income taxes 1,719 1,858 901 Depreciation and amortization expense (1) 25,064 27,513 27,020 EBITDA 15,067 (10,298 ) (12,955 ) Transition costs (2) 13,485 — — Gain on sales of assets (3) (40,103 ) — — Restructuring costs (4) — 5,101 — Asset abandonment (5) — — 8,247 Contract modification costs (6) — — 623 Adjusted EBITDA $ (11,551 ) $ (5,197 ) $ (4,085 ) (1) Within this reconciliation, depreciation and amortization expense excludes the amortization of debt issuance costs, which are reflected in interest expense, net.
The total amount ultimately invested for fiscal 2025 could be more or less than the currently estimated amount depending on the timing and scale of contemplated initiatives and is expected to be funded primarily with cash provided by operating activities and other borrowings. UNIFI expects recent and future capital projects to provide benefits to future profitability.
UNIFI will seek to ensure maintenance capital expenditures are sufficient to allow continued production at high efficiencies. The total amount ultimately invested for fiscal 2026 could be more or less than the currently estimated amount depending on the timing and scale of contemplated initiatives and is expected to be funded primarily with cash provided by operating activities and other borrowings.
In connection with entering into the 2022 Credit Agreement, UNIFI recorded a $273 loss on debt extinguishment to interest expense in the second quarter of fiscal 2023 related to its prior debt instrument.
In connection with entering into the 2022 Credit Agreement, UNIFI recorded a $273 loss on debt extinguishment to interest expense in fiscal 2023 related to its prior debt instrument. On September 5, 2024, UNIFI, Inc. and certain of its subsidiaries entered into a First Amendment to the 2022 Credit Agreement (the “First Amendment”) with a syndicate of lenders.
Within the accompanying consolidated statements of cash flows, amortization of debt issuance costs is reflected in depreciation and amortization expense. In fiscal 2023, interest expense, net includes $273 of loss on debt extinguishment. (2) In the second quarter of fiscal 2024, UNIFI recorded a loss of $2,750 related to the dissolution of a nylon joint venture.
Within the accompanying consolidated statements of cash flows, amortization of debt issuance costs is reflected in depreciation and amortization expense. In fiscal 2025, 2024 and 2023, interest expense, net includes $136, $0 and $273, respectively, of loss on debt extinguishment.
As the Asia market improves, the volume of low-cost Asian imports into Brazil is expected to decrease. 20 The following developments and trends occurred or were occurring in fiscal 2024: • Demand levels for the majority of our business lines in the Americas and Asia Segments were below historical trends, as a result of lower global demand amid consumer and macroeconomic uncertainty. • Our REPREVE family of products continued to gain momentum with brands, retailers, and mill partners who value sustainability and UNIFI’s ability to produce leading-edge products with in-demand technologies. • The Americas Segment experienced continued weak demand and weak fixed cost absorption in connection with lower production, despite stable raw material costs during fiscal 2024. • The Brazil Segment was able to capture market share, but incurred selling price pressures from low-cost imports in the first half of the fiscal year. • The Asia Segment's sales growth slowed in fiscal 2024, due to a slowdown in global demand; however, there remains healthy demand for REPREVE, generating continued portfolio expansion.
As the Asia market improves, the volume of low-cost Asian imports into Brazil is expected to decrease. 21 The following developments and trends occurred or were occurring in fiscal 2025: • Demand levels for the majority of our business lines in the Americas and Asia Segments were below expectations, as a result of lower global demand amid consumer and macroeconomic uncertainty including most recently the tariffs and retaliatory tariffs. • Our REPREVE family of products continued to gain momentum with brands, retailers, and mill partners who value sustainability and UNIFI’s ability to produce leading-edge products with in-demand technologies. • The Americas Segment experienced lower than anticipated manufacturing utilization and production levels, despite stable raw material costs during fiscal 2025.
Net (Loss) Income Fiscal 2024 % Change Fiscal 2023 % Change Fiscal 2022 Net sales $ 582,209 (6.6 ) $ 623,527 (23.6 ) $ 815,758 Cost of sales 565,593 (7.2 ) 609,286 (17.1 ) 735,273 Gross profit 16,616 16.7 14,241 (82.3 ) 80,485 SG&A 46,632 (1.5 ) 47,345 (9.8 ) 52,489 Provision (benefit) for bad debts 1,571 nm (89 ) (80.0 ) (445 ) Restructuring costs 5,101 nm — nm — Other operating expense (income), net 733 (90.7 ) 7,856 nm (158 ) Operating (loss) income (37,421 ) (8.4 ) (40,871 ) nm 28,599 Interest expense, net 7,726 41.3 5,468 nm 1,561 Loss (earnings) from unconsolidated affiliates 390 (143.5 ) (896 ) 48.1 (605 ) Recovery of non-income taxes, net — nm — nm 815 (Loss) income before income taxes (45,537 ) 0.2 (45,443 ) nm 26,828 Provision for income taxes 1,858 106.2 901 (92.3 ) 11,657 Net (loss) income $ (47,395 ) 2.3 $ (46,344 ) nm $ 15,171 nm – not meaningful Non-GAAP Reconciliations EBITDA and Adjusted EBITDA (Non-GAAP Financial Measures) The reconciliations of the amounts reported under GAAP for Net (Loss) Income to EBITDA and Adjusted EBITDA are as follows.
Net Loss Fiscal 2025 % Change Fiscal 2024 % Change Fiscal 2023 Net sales $ 571,344 (1.9 ) $ 582,209 (6.6 ) $ 623,527 Cost of sales 562,926 (0.5 ) 565,593 (7.2 ) 609,286 Gross profit 8,418 (49.3 ) 16,616 16.7 14,241 SG&A 49,005 5.1 46,632 (1.5 ) 47,345 (Benefit) provision for bad debts (166 ) (110.6 ) 1,571 nm (89 ) Restructuring costs 8,924 74.9 5,101 nm — (Gain) loss on sales and disposals of assets (40,079 ) nm 62 nm 278 Other operating expense, net 254 (62.1 ) 671 (91.1 ) 7,578 Operating loss (9,520 ) (74.6 ) (37,421 ) (8.4 ) (40,871 ) Interest expense, net 8,632 11.7 7,726 41.3 5,468 Loss (earnings) from unconsolidated affiliates 477 22.3 390 (143.5 ) (896 ) Loss before income taxes (18,629 ) (59.1 ) (45,537 ) 0.2 (45,443 ) Provision for income taxes 1,719 (7.5 ) 1,858 106.2 901 Net loss $ (20,348 ) (57.1 ) $ (47,395 ) 2.3 $ (46,344 ) nm – not meaningful Non-GAAP Reconciliations EBITDA and Adjusted EBITDA (Non-GAAP Financial Measures) The reconciliations of the amounts reported under GAAP for Net Loss to EBITDA and Adjusted EBITDA are as follows.
The impairment charge was recorded to reflect the lack of future positive cash flows associated with the machinery, following multiple years of investment recovery since its fiscal 2017 installation. (5) In fiscal 2023, UNIFI amended certain existing contracts related to future purchases of texturing machinery by delaying the scheduled receipt and installation of such equipment for approximately 18 months.
(5) In fiscal 2023, UNIFI abandoned certain specialized machinery in the Americas and recorded an impairment charge. The impairment charge was recorded to reflect the lack of future positive cash flows associated with the machinery, following multiple years of investment recovery since its fiscal 2017 installation.
The changes in income taxes receivable, income taxes payable, current operating lease liabilities, and current portion of long-term debt were insignificant. Capital Projects Maintenance capital expenditures are necessary to support UNIFI’s current operations, capacities, and capabilities and exclude expenses relating to repairs and costs that do not extend an asset’s useful life.
Capital Projects Maintenance capital expenditures are necessary to support UNIFI’s current operations, capacities, and capabilities and exclude expenses relating to repairs and costs that do not extend an asset’s useful life.
The changes in Segment Profit for the Asia Segment are as follows: Segment Profit for fiscal 2022 $ 28,876 Decrease in sales volumes (12,885 ) Unfavorable foreign currency translation effects (1,981 ) Change in underlying margins and sales mix 2,728 Segment Profit for fiscal 2023 $ 16,738 Segment Profit for fiscal 2023 $ 16,738 Increase in sales volumes 1,880 Change in underlying margins and sales mix 1,514 Unfavorable foreign currency translation effects (631 ) Segment Profit for fiscal 2024 $ 19,501 The increase in Segment Profit for the Asia Segment from fiscal 2023 to fiscal 2024 was attributable to (i) the increase in sales volumes discussed above and (ii) an improved gross margin rate associated with a strong sales mix of REPREVE products, partially offset by unfavorable foreign currency translation effects.
The changes in Segment Profit for the Asia Segment are as follows: Segment Profit for fiscal 2023 $ 16,738 Increase in sales volumes 1,880 Change in underlying margins and sales mix 1,514 Unfavorable foreign currency translation effects (631 ) Segment Profit for fiscal 2024 $ 19,501 Segment Profit for fiscal 2024 $ 19,501 Change in underlying margins and sales mix (5,979 ) Decrease in sales volumes (882 ) Favorable foreign currency translation effects 25 Segment Profit for fiscal 2025 $ 12,665 The decrease in Segment Profit for the Asia Segment from fiscal 2024 to fiscal 2025 was primarily attributable to a decline in gross margin associated with (i) a change in sales mix of REPREVE products and (ii) lower sales volumes due to customer-demand headwinds and volatility introduced by recent tariffs.
During fiscal 2025, we expect the majority of our capital will be deployed to support further working capital needs in response to the demand environment and product sales.
During fiscal 2026, we expect the majority of our capital will be deployed to support further working capital needs in response to the demand environment and product sales. However, given the current global economic risks, we are prepared to act swiftly and diligently to ensure the vitality of the business.
Fiscal 2024 Fiscal 2023 Fiscal 2022 Net (loss) income $ (47,395 ) $ (46,344 ) $ 15,171 Depreciation and amortization expense 27,669 27,186 26,207 Equity in loss (earnings) of unconsolidated affiliates 390 (896 ) (605 ) Impairment for asset abandonment — 8,247 — Recovery of taxes, net — (3,799 ) 815 Non-cash compensation expense 2,074 2,805 3,555 Deferred income taxes (3,543 ) (2,788 ) (3,119 ) Subtotal (20,805 ) (15,589 ) 42,024 Distributions received from unconsolidated affiliates 1,000 — 750 Change in inventories 13,879 24,431 (34,749 ) Other changes in assets and liabilities 8,018 (4,102 ) (7,645 ) Net cash provided by operating activities $ 2,092 $ 4,740 $ 380 Fiscal 2024 Compared to Fiscal 2023 The decrease in operating cash flows was primarily due to weaker earnings in fiscal 2024 compared to fiscal 2023, partially offset by working capital improvements.
Fiscal 2025 Fiscal 2024 Fiscal 2023 Net loss $ (20,348 ) $ (47,395 ) $ (46,344 ) Depreciation and amortization expense 25,284 27,669 27,186 Equity in loss (earnings) of unconsolidated affiliates 477 390 (896 ) Impairment for asset abandonment — — 8,247 Recovery of taxes, net — — (3,799 ) Non-cash compensation expense 3,252 2,074 2,805 (Gain) loss on sales and disposals of assets (39,317 ) 62 278 Deferred income taxes (676 ) (3,543 ) (2,788 ) Subtotal (31,328 ) (20,743 ) (15,311 ) Distributions received from unconsolidated affiliates — 1,000 - Change in inventories 9,588 13,879 24,431 Other changes in assets and liabilities 429 7,956 (4,380 ) Net cash (used) provided by operating activities $ (21,311 ) $ 2,092 $ 4,740 Fiscal 2025 Compared to Fiscal 2024 The decrease in operating cash flows from fiscal 2024 was primarily due to weaker underlying earnings together with less favorable impacts from changes in working capital than in the prior year and transition activities.
Once global economic pressures subside, we believe incremental revenue for the Americas Segment will be generated from our anti-dumping petitions and efforts around fair trade of textile yarn, and continued demand for innovative and sustainable products. The Asia Segment continues to capture demand for recycled products and serves as a significant component of future growth.
Looking ahead, we believe our operations remain well-positioned to capture long-term growth opportunities and we are working to mitigate any potential recessionary impacts. Once global economic pressures subside, we believe incremental revenue for the Americas Segment will be generated from our anti-dumping petitions and efforts around fair trade of textile yarn, and continued demand for innovative and sustainable products.
Adjusted Net (Loss) Income (Non-GAAP Financial Measure) Adjusted Net Loss increased from $(41,273) for fiscal 2023 to $(42,294) for fiscal 2024, primarily due to higher bad debt expense, lower earnings from unconsolidated affiliates, and a decrease in other operating expenses net.
Adjusted Net Loss increased from $(41,273) for fiscal 2023 to $(42,294) for fiscal 2024, primarily due to higher bad debt expense, lower earnings from unconsolidated affiliates, and a decrease in other operating expenses, net. 28 Segment Overview Following is a discussion and analysis of the revenue and profitability performance of UNIFI’s reportable segments for fiscal 2025, 2024, and 2023.
(6) In fiscal 2022, UNIFI reduced an estimated benefit based on additional clarity and the review of the recovery process in Brazil. 23 Adjusted Net (Loss) Income and Adjusted EPS (Non-GAAP Financial Measures) The tables below set forth reconciliations of (i) (Loss) Income Before Income Taxes (“Pre-tax (Loss) Income”), Provision for Income Taxes (“Tax Impact”) and Net (Loss) Income to Adjusted Net (Loss) Income and (ii) Diluted EPS to Adjusted EPS.
Adjusted Net Loss and Adjusted EPS (Non-GAAP Financial Measures) The tables below set forth reconciliations of (i) Loss Before Income Taxes (“Pre-tax Loss”), Provision for Income Taxes (“Tax Impact”) and Net Loss to Adjusted Net Loss and (ii) Diluted EPS to Adjusted EPS.
The decrease in Segment Profit for the Brazil Segment from fiscal 2022 to fiscal 2023 was primarily attributable to an overall decrease in gross margin mainly due to the decrease in selling prices discussed above and the impact of higher raw material costs in beginning inventory. 29 Asia Segment The components of Segment Profit and the percentage increase or decrease over the prior period amounts for the Asia Segment are as follows: Fiscal 2024 % Change Fiscal 2023 % Change Fiscal 2022 Net sales $ 120,170 4.7 $ 114,803 (44.4 ) $ 206,607 Cost of sales 100,679 2.7 98,065 (44.8 ) 177,731 Gross profit 19,491 16.4 16,738 (42.0 ) 28,876 Depreciation expense 10 — — — — Segment Profit $ 19,501 16.5 $ 16,738 (42.0 ) $ 28,876 Gross margin 16.2 % 14.6 % 14.0 % Segment margin 16.2 % 14.6 % 14.0 % Segment net sales as a percentage of consolidated amount 20.6 % 18.4 % 25.3 % Segment Profit as a percentage of consolidated amount 46.4 % 43.7 % 28.0 % The changes in net sales for the Asia Segment are as follows: Net sales for fiscal 2022 $ 206,607 Decrease in sales volumes (92,535 ) Unfavorable foreign currency translation effects (13,455 ) Change in average selling price and sales mix 14,186 Net sales for fiscal 2023 $ 114,803 Net sales for fiscal 2023 $ 114,803 Increase in sales volumes 12,939 Unfavorable foreign currency translation effects (3,936 ) Change in average selling price and sales mix (3,636 ) Net sales for fiscal 2024 $ 120,170 The increase in net sales for the Asia Segment from fiscal 2023 to fiscal 2024 was primarily attributable to improved sales volumes despite continued weak global demand and inventory destocking by brands and retailers, particularly for apparel.
The increase in Segment Profit for the Brazil Segment from fiscal 2023 to fiscal 2024 was primarily attributable to (i) increases in sales volumes as discussed above, (ii) improved conversion margins, and (ii) favorable foreign currency translation effects. 30 Asia Segment The components of Segment Profit and the percentage increase or decrease over the prior period amounts for the Asia Segment are as follows: Fiscal 2025 % Change Fiscal 2024 % Change Fiscal 2023 Net sales $ 104,687 (12.9 ) $ 120,170 4.7 $ 114,803 Cost of sales 92,079 (8.5 ) 100,679 2.7 98,065 Gross profit 12,608 (35.3 ) 19,491 16.4 16,738 Depreciation expense 57 470.0 10 — — Segment Profit $ 12,665 (35.1 ) $ 19,501 16.5 $ 16,738 Gross margin 12.0 % 16.2 % 14.6 % Segment margin 12.1 % 16.2 % 14.6 % Segment net sales as a percentage of consolidated amount 18.3 % 20.6 % 18.4 % Segment Profit as a percentage of consolidated amount 39.3 % 46.4 % 43.7 % The changes in net sales for the Asia Segment are as follows: Net sales for fiscal 2023 $ 114,803 Increase in sales volumes 12,939 Unfavorable foreign currency translation effects (3,936 ) Change in average selling price and sales mix (3,636 ) Net sales for fiscal 2024 $ 120,170 Net sales for fiscal 2024 $ 120,170 Change in average selling price and sales mix (10,103 ) Decrease in sales volumes (5,433 ) Favorable foreign currency translation effects 53 Net sales for fiscal 2025 $ 104,687 The decrease in net sales for the Asia Segment from fiscal 2024 to fiscal 2025 was primarily attributable to (i) a change in sales mix of REPREVE products and (ii) an overall decrease in sales volumes due to the continued customer-demand headwinds, particularly for apparel, and volatility introduced by recent tariffs partially offset by favorable foreign currency translation effects due to the strengthening of the RMB versus the USD.
The BRL to USD weighted average exchange rate was 5.01, 5.17, and 5.21 for fiscal 2024, 2023, and 2022, respectively. The RMB to USD weighted average exchange rate was 7.22, 6.94, and 6.45 for fiscal 2024, 2023, and 2022, respectively.
The BRL to USD weighted average exchange rate was 5.71, 5.01, and 5.17 for fiscal 2025, 2024, and 2023, respectively. The RMB to USD weighted average exchange rate was 7.21, 7.22, and 6.94 for fiscal 2025, 2024, and 2023, respectively. 22 Key Performance Indicators and Non-GAAP Financial Measures UNIFI continuously reviews performance indicators to measure its success.
Fiscal 2023 SG&A expenses decreased from fiscal 2023, primarily due to lower marketing, compensation, and amortization expenses. Fiscal 2023 vs. Fiscal 2022 SG&A expenses decreased from fiscal 2022, primarily due to lower compensation and discretionary expenses, including marketing and advertising. Provision (Benefit) for Bad Debts Fiscal 2024 vs.
Fiscal 2024 SG&A expenses increased from fiscal 2024, primarily due to higher compensation-related expenses and professional fee expenses, partially offset by decreases in depreciation and amortization expenses. Fiscal 2024 vs. Fiscal 2023 SG&A expenses decreased from fiscal 2023, primarily due to lower marketing, compensation, and amortization expenses. (Benefit) Provision for Bad Debts Fiscal 2025 vs.
In fiscal 2024, we experienced stable raw material prices for most of the fiscal year, although lower REPREVE sales to apparel markets impacted our profitability. The continuing volatility in global crude oil prices is likely to impact UNIFI’s polyester and nylon raw material costs.
In fiscal 2024, we experienced stable raw material prices for most of the fiscal year, although lower REPREVE sales to apparel markets impacted our profitability. In fiscal 2025, the Americas and Asia Segments experienced lower input and freight costs, but the demand volatility and uncertainty persisted.
These were partially offset by (i) higher sales volumes, (ii) variable cost management efforts, and (ii) a more stable raw material cost environment. • For the Brazil Segment, gross profit increased primarily due to higher sales volumes from market share gains and favorable foreign currency translation effects, partially offset by decreasing market prices in Brazil due to low-cost import competition. • For the Asia Segment, gross profit increased primarily due to (i) a strong sales mix and (ii) higher sales volumes compared to fiscal 2023, despite continued weak global demand.
These were partially offset by (i) higher sales volumes, (ii) variable cost management efforts, and (ii) a more stable raw material cost environment. • For the Brazil Segment, gross profit increased primarily due to higher sales volumes from market share gains and favorable foreign currency translation effects, partially offset by decreasing market prices in Brazil due to low-cost import competition. • For the Asia Segment, gross profit increased primarily due to (i) a strong sales mix and (ii) higher sales volumes compared to fiscal 2023, despite continued macro-driven customer-demand headwinds. 26 SG&A Expenses The changes in SG&A expenses were as follows: SG&A for fiscal 2023 $ 47,345 Net decrease in marketing expenses (848 ) Net decrease in amortization expenses (763 ) Net increase in professional fees 587 Other net increases 311 SG&A for fiscal 2024 $ 46,632 SG&A for fiscal 2024 $ 46,632 Net increase in compensation-related expenses 2,454 Net increase in professional fees 690 Other net increases 158 Net decrease in depreciation and amortization expenses (929 ) SG&A for fiscal 2025 $ 49,005 Fiscal 2025 vs.
Recognizing the continuing weak demand environment, in the third quarter of fiscal 2023, UNIFI negotiated a contract modification with an equipment vendor from which significant capital expenditures had occurred and were planned to continue through September 2024.
The sale of this facility was part of a plan announced in February 2025 to consolidate the Americas Segment yarn manufacturing operations and transition the associated manufacturing operations to other production facilities in North and Central America. 32 Recognizing the continuing weak demand environment, in fiscal 2023, UNIFI negotiated a contract modification with an equipment vendor from which significant capital expenditures had occurred and were planned to continue through September 2024.
(5) In fiscal 2023, UNIFI recorded a recovery of income taxes in connection with filing amended tax returns in Brazil relating to certain income taxes paid in prior fiscal years following favorable legal rulings in fiscal 2023. (6) In fiscal 2022, UNIFI reduced an estimated benefit based on additional clarity and the review of the recovery process in Brazil.
(7) In fiscal 2023, UNIFI recorded a recovery of income taxes in connection with filing amended tax returns in Brazil relating to certain income taxes paid in prior fiscal years following favorable legal rulings in fiscal 2023. 25 Net Sales Fiscal 2025 vs.
See “Non-GAAP Reconciliations” below for reconciliations of each non-GAAP metrics to the most directly comparable GAAP metric. 22 Review of Results of Operations for Fiscal 2024, 2023, and 2022 UNIFI’s fiscal 2024 and 2023 each consisted of 52 weeks, while its fiscal 2022 consisted of 53 weeks.
See “Non-GAAP Reconciliations” below for reconciliations of each non-GAAP metrics to the most directly comparable GAAP metric. 23 Review of Results of Operations for Fiscal 2025, 2024 and 2023 UNIFI’s fiscal 2025, 2024 and 2023 each consisted of 52 weeks, with no impacts to net sales, gross profit, and selling, general, and administrative ("SG&A") expenses due to extra weeks.
The Brazil Segment has returned to more normalized levels of performance and is expected to maintain healthy volumes and margins.
The Asia Segment continues to focus on demand for recycled products and serves as a significant component of future growth. The Brazil Segment has returned to more normalized levels of performance and is expected to maintain healthy volumes and margins.
REPREVE Fiber products for fiscal 2024 comprised 32%, or $188,517, of consolidated net sales, up from 30%, or $186,161, for fiscal 2023. 24 Fiscal 2023 vs. Fiscal 2022 Consolidated net sales for fiscal 2023 decreased by $192,231, or 23.6%, and consolidated sales volumes decreased 25.3%, compared to fiscal 2022.
REPREVE Fiber products for fiscal 2024 comprised 32%, or $188,517, of consolidated net sales, up from 30%, or $186,161, for fiscal 2023. Gross Profit Fiscal 2025 vs. Fiscal 2024 Gross profit for fiscal 2025 decreased to $8,418 from $16,616 in fiscal 2024.
ASU No. 2023-07 expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The ASU is effective for UNIFI’s fiscal 2025 for annual reporting and in the first quarter of fiscal 2026 for interim reporting, with early adoption permitted. UNIFI has not adopted, and does not expect to early adopt, this standard.
ASU No. 2023-07 expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. UNIFI adopted the ASU this fiscal year and the adoption did not have a material impact to UNIFI's consolidated financial statements.
These negative impacts were partially offset by variable cost management efforts, more stable raw material costs and an increase in sales volumes in fiscal 2024. The decrease in Segment Profit for the Americas Segment from fiscal 2022 to fiscal 2023 was primarily attributable to lower production volumes driving weaker fixed cost absorption in connection with lower sales volumes.
These negative impacts were partially offset by variable cost management efforts, more stable raw material costs and an increase in sales volumes in fiscal 2024.
UNIFI employs a variety of strategies to ensure that its worldwide cash is available in the locations where it is needed.
Cash and cash equivalents held by foreign subsidiaries may not be presently available to fund UNIFI’s domestic capital requirements, including its domestic debt obligations. UNIFI employs a variety of strategies to ensure that its worldwide cash is available in the locations where it is needed.
Ultimately, we believe that combining leading-edge innovation with our prominent, high-quality brand and agile regional business model will allow for underlying sales and profitability growth.
Ultimately, we believe that combining leading-edge innovation with our prominent, high-quality brand and agile regional business model will allow for underlying sales and profitability growth. Significant Developments and Trends Key drivers of our recent financial results include: • During fiscal 2020, our financial results began to improve following more stable import and raw material cost environments.
Both periods were unfavorably impacted by the continued weak global textile demand environment. The decrease in net sales for the Americas Segment from fiscal 2022 to fiscal 2023 was primarily attributable to lower sales volumes following weaker global textile demand.
Both periods were unfavorably impacted by customer-demand headwinds and the volatile global textile demand environment. The decrease in net sales for the Americas Segment from fiscal 2023 to fiscal 2024 was primarily attributable to the net change in average selling price and sales mix that included lower raw material input costs, partially offset by an increase in sales volumes.
Additionally, a discrete tax benefit was recognized in fiscal 2023 related to the recovery of certain Brazilian income taxes paid in prior years. Net (Loss) Income Fiscal 2024 vs. Fiscal 2023 Net loss for fiscal 2024 was $47,395, or $2.61 per diluted share, compared to net loss of $46,344, or $2.57 per diluted share, for fiscal 2023.
Fiscal 2023 Net loss for fiscal 2024 was $47,395, or $2.61 per diluted share, compared to $46,344, or $2.57 per diluted share, for fiscal 2023.
Net Debt (Non-GAAP Financial Measure) The reconciliations for Net Debt are as follows: June 30, 2024 July 2, 2023 Long-term debt $ 117,793 $ 128,604 Current portion of long-term debt 12,277 12,006 Unamortized debt issuance costs 229 289 Debt principal 130,299 140,899 Less: cash and cash equivalents 26,805 46,960 Net Debt $ 103,494 $ 93,939 33 Working Capital and Adjusted Working Capital (Non-GAAP Financial Measure) The following table presents the components of working capital and the reconciliation from working capital to Adjusted Working Capital: June 30, 2024 July 2, 2023 Cash and cash equivalents $ 26,805 $ 46,960 Receivables, net 79,165 83,725 Inventories 131,181 150,810 Income taxes receivable 164 238 Other current assets 11,618 12,327 Accounts payable (43,622 ) (44,455 ) Other current liabilities (17,662 ) (12,932 ) Income taxes payable (754 ) (789 ) Current operating lease liabilities (2,251 ) (1,813 ) Current portion of long-term debt (12,277 ) (12,006 ) Working capital $ 172,367 $ 222,065 Less: Cash and cash equivalents (26,805 ) (46,960 ) Less: Income taxes receivable (164 ) (238 ) Less: Income taxes payable 754 789 Less: Current operating lease liabilities 2,251 1,813 Less: Current portion of long-term debt 12,277 12,006 Adjusted Working Capital $ 160,680 $ 189,475 Working capital decreased from $222,065 as of July 2, 2023 to $172,367 as of June 30, 2024, while Adjusted Working Capital decreased from $189,475 to $160,680, both primarily in connection with slower overall economic conditions and higher input costs.
Fiscal 2026 Fiscal 2027 Fiscal 2028 Fiscal 2029 Fiscal 2030 Thereafter ABL Revolver $ — $ — $ 11,000 $ — $ — $ — 2024 Facility — — 22,000 — — — ABL Term Loan 9,200 9,200 48,600 — — — Finance lease obligations 2,959 2,536 1,527 278 223 485 Total $ 12,159 $ 11,736 $ 83,127 $ 278 $ 223 $ 485 Further discussion of the terms and conditions of the Credit Agreement and the Company’s existing indebtedness is outlined in Note 12, “Long-Term Debt,” to the accompanying consolidated financial statements. 34 Net Debt (Non-GAAP Financial Measure) The reconciliations for Net Debt are as follows: June 29, 2025 June 30, 2024 Long-term debt $ 95,727 $ 117,793 Current portion of long-term debt 12,159 12,277 Unamortized debt issuance costs 122 229 Debt principal 108,008 130,299 Less: cash and cash equivalents 22,664 26,805 Net Debt $ 85,344 $ 103,494 Working Capital and Adjusted Working Capital (Non-GAAP Financial Measure) The following table presents the components of working capital and the reconciliation from working capital to Adjusted Working Capital: June 29, 2025 June 30, 2024 Cash and cash equivalents $ 22,664 $ 26,805 Receivables, net 75,383 79,165 Inventories 122,929 131,181 Income taxes receivable 5,429 164 Other current assets 9,222 11,618 Accounts payable (37,468 ) (43,622 ) Other current liabilities (18,899 ) (17,662 ) Income taxes payable (49 ) (754 ) Current operating lease liabilities (2,368 ) (2,251 ) Current portion of long-term debt (12,159 ) (12,277 ) Working capital $ 164,684 $ 172,367 Less: Cash and cash equivalents (22,664 ) (26,805 ) Less: Income taxes receivable (5,429 ) (164 ) Less: Income taxes payable 49 754 Less: Current operating lease liabilities 2,368 2,251 Less: Current portion of long-term debt 12,159 12,277 Adjusted Working Capital $ 151,167 $ 160,680 Working capital decreased from $172,367 as of June 30, 2024 to $164,684 as of June 29, 2025, while Adjusted Working Capital decreased from $160,680 to $151,167, both primarily in connection with slower overall economic conditions and higher input costs.
Fiscal 2023 Compared to Fiscal 2022 The increase in operating cash flows was primarily due to reducing working capital associated with a decline in overall business activity in fiscal 2023, which was primarily offset by significantly weaker earnings. 35 Cash (Used) Provided by Investing Activities and Financing Activities Fiscal 2024 Significant investing activities included $11,189 for capital expenditures (as described above).
Fiscal 2024 Compared to Fiscal 2023 The decrease in operating cash flows was primarily due to weaker earnings in fiscal 2024 compared to fiscal 2023, partially offset by working capital improvements. 36 Cash (Used) Provided by Investing Activities and Financing Activities Fiscal 2025 Significant investing activities included $10,488 for capital expenditures (as described above) and $51,553 of cash proceeds from the sales of a warehouse in Yadkinville, North Carolina and manufacturing facility in Madison, North Carolina.
Contractual Obligations In addition to management’s discussion and analysis surrounding our liquidity and capital resources, long-term debt, finance leases, operating leases, and the associated principal and interest components thereof, as of June 30, 2024, UNIFI’s contractual obligations consisted of the following additional concepts and considerations: • Capital purchase obligations relate to contracts with vendors for the construction or purchase of assets, primarily for the normal course operations in our manufacturing facilities.
Contractual Obligations In addition to management’s discussion and analysis surrounding our liquidity and capital resources, long-term debt, finance leases, operating leases, and the associated principal and interest components thereof, as of June 29, 2025, UNIFI’s contractual obligations consisted of the following additional concepts and considerations: • Purchase obligations are agreements that are enforceable and legally binding and that specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction.

… 88 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

8 edited+0 added−0 removed13 unchanged
Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations.” UNIFI does not enter into foreign currency derivatives to hedge its net investment in its foreign operations. 37 As of June 30, 2024, foreign currency exchange rate risk concepts included the following: Approximate Amount or Percentage Percentage of total consolidated assets held by UNIFI's subsidiaries outside the U.S. whose functional currency is not the USD 30 % Cash and cash equivalents held outside the U.S.: Denominated in USD $ 16,062 Denominated in RMB 502 Denominated in BRL 8,775 Denominated in other foreign currencies 162 Total cash and cash equivalents held outside the U.S. $ 25,501 Percentage of total cash and cash equivalents held outside the U.S. 95 % Cash and cash equivalents held inside the U.S. in USD by foreign subsidiaries $ 1,287 More information regarding UNIFI’s derivative financial instruments as of June 30, 2024 is provided in Note 18, “Fair Value of Financial Instruments and Non-Financial Assets and Liabilities,” to the accompanying consolidated financial statements.
Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations.” UNIFI does not enter into foreign currency derivatives to hedge its net investment in its foreign operations. 38 As of June 29, 2025, foreign currency exchange rate risk concepts included the following: Approximate Amount or Percentage Percentage of total consolidated assets held by UNIFI's subsidiaries outside the U.S. whose functional currency is not the USD 32 % Cash and cash equivalents held outside the U.S.: Denominated in USD $ 11,813 Denominated in RMB 665 Denominated in BRL 7,360 Denominated in other foreign currencies 696 Total cash and cash equivalents held outside the U.S. $ 20,534 Percentage of total cash and cash equivalents held outside the U.S. 91 % Cash and cash equivalents held inside the U.S. in USD by foreign subsidiaries $ 2,109 Raw Material and Commodity Cost Risks A significant portion of UNIFI’s raw material and energy costs are derived from petroleum-based chemicals.
During fiscal 2022 and 2023, our raw material costs were elevated. We were able to implement responsive selling price adjustments for the majority of our portfolio; however our underlying gross margin was pressured. In fiscal 2024, while gross margins were still pressured, UNIFI experienced a more stable raw material pricing environment for most of the fiscal year.
During fiscal 2022 and 2023, our raw material costs were elevated. We were able to implement responsive selling price adjustments for the majority of our portfolio; however our underlying gross margin was pressured. In fiscal 2024 and 2025, while gross margins were still pressured, UNIFI experienced a more stable raw material pricing environment for most of the fiscal year.
Other Risks UNIFI is also exposed to political risk, including changing laws and regulations governing international trade, such as quotas, tariffs, and tax laws. The degree of impact and the frequency of these events cannot be predicted. 38 Item 8. Financial Statemen ts and Supplementary Data Our consolidated financial statements and the related notes begin on page F-i herein.
Other Risks UNIFI is also exposed to political risk, including changing laws and regulations governing international trade, such as quotas, tariffs, and tax laws. The degree of impact and the frequency of these events cannot be predicted. 39 Item 8. Financial Statemen ts and Supplementary Data Our consolidated financial statements and the related notes begin on page F-i herein.
UNIFI may also enter into foreign currency forward contracts to hedge its exposure for certain equipment or inventory purchase commitments. As of June 30, 2024, UNIFI had no outstanding foreign currency forward contracts. A significant portion of raw materials purchased by the Brazil Segment are denominated in USDs, requiring UNIFI to exchange BRL for USD.
UNIFI may also enter into foreign currency forward contracts to hedge its exposure for certain equipment or inventory purchase commitments. As of June 29, 2025, UNIFI had no outstanding foreign currency forward contracts. A significant portion of raw materials purchased by the Brazil Segment are denominated in USDs, requiring UNIFI to exchange BRL for USD.
After considering UNIFI’s outstanding debt obligations with fixed rates of interest, UNIFI’s sensitivity analysis indicates that a 50-basis point interest rate increase as of June 30, 2024 would result in an increase in annual interest expense of approximately $700. Foreign Currency Exchange Rate Risk UNIFI conducts its business in various foreign countries and in various foreign currencies.
After considering UNIFI’s outstanding debt obligations with fixed rates of interest, UNIFI’s sensitivity analysis indicates that a 50-basis point interest rate increase as of June 29, 2025 would result in an increase in annual interest expense of approximately $500. Foreign Currency Exchange Rate Risk UNIFI conducts its business in various foreign countries and in various foreign currencies.
UNIFI does not enter into derivative financial instruments for trading purposes, nor is it a party to any leveraged financial instruments. Interest Rate Risk UNIFI is exposed to interest rate risk through its borrowing activities. As of June 30, 2024, UNIFI had borrowings under the 2022 ABL Term Facility totaling $120,900.
UNIFI does not enter into derivative financial instruments for trading purposes, nor is it a party to any leveraged financial instruments. Interest Rate Risk UNIFI is exposed to interest rate risk through its borrowing activities. As of June 29, 2025, UNIFI had borrowings under the 2022 ABL Term Facility and 2024 Facility totaling $100,000.
A sudden rise in the price of petroleum and petroleum-based products could have a material impact on UNIFI’s profitability. UNIFI does not use financial instruments to hedge its exposure to changes in these costs as management has concluded that the overall cost of hedging petroleum exceeds the potential risk mitigation.
UNIFI does not use financial instruments to hedge its exposure to changes in these costs as management has concluded that the overall cost of hedging petroleum exceeds the potential risk mitigation.
Raw Material and Commodity Cost Risks A significant portion of UNIFI’s raw material and energy costs are derived from petroleum-based chemicals. The prices for petroleum and petroleum-related products and related energy costs are volatile and dependent on global supply and demand dynamics, including certain geo-political risks.
The prices for petroleum and petroleum-related products and related energy costs are volatile and dependent on global supply and demand dynamics, including certain geo-political risks. A sudden rise in the price of petroleum and petroleum-based products could have a material impact on UNIFI’s profitability.

Other UFI 10-K year-over-year comparisons