Cost-cutting is Paying Off for Unifi
Thu, August 20, 2026 at 8:38 PM GMT+3 4 min read
Although Unifi Inc., the recycled and synthetic yarn maker, delivered a net loss for its fiscal fourth quarter, the company posted higher sales and gross profit while reducing expenses.
The net loss was $1.2 million, or 6 cents per share, which compares to a net income of $15.5 million, or 82 cents per share, in the same period last year, which the company said included a $35.8 million gain on the sale of a manufacturing facility, and was partially offset by $10.6 million in "transition costs."
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Net sales rose 4.1 percent in the quarter to $144.2 million, with revenues from its Repreve Fiber products line coming in at $40.2 million, which represents 28 percent of net sales. Gross profit came in at $14.3 million, which compares to a gross loss of $1.1 million for the same period last year.
Eddie Ingle, chief executive officer of Unifi Inc., said the company closed fiscal 2026 "with clear momentum, highlighted by meaningful improvement in profitability and cash generation."
"These results reflect disciplined execution of our cost reduction, operational optimization, and portfolio management initiatives, each of which has driven [down] our revenue break-even point," the CEO said. "As we enter fiscal 2027, Unifi is operating from a healthier financial position, with a more focused cost structure and a balance sheet that we expect to further strengthen through the planned sale of non-strategic real estate assets."
In other line items, selling, general and administrative (SG&A) expenses came in at $11.8 million, which is a decrease of 1 percent from the fourth quarter of fiscal 2025. The company said the drop was "primarily driven by cost reduction efforts."
Unifi also said in a statement announcing results that following the fourth fiscal quarter, it entered into an agreement "to sell certain non-strategic real estate assets." Earlier this week, the company said those assets were in Yadkin County, N.C., and were sold for $60 million to reduce debt. The assets include approximately 120 acres of land and 500,000 square feet of warehouse space at the company's Yadkinville operation, which remains open.
The buyer, data center operator WhiteFiber, is acquiring the property through its wholly owned subsidiary, Enovum Data Centers Corp.; WhiteFiber is also developing a $1 billion data center at Unifi's former manufacturing site in nearby Madison, N.C. The transaction is expected to close in the fourth quarter.
Regarding the higher sales in the quarterly report, the company said it was primarily due to higher sales from the Brazil Segment and was partially offset "by tepid customer ordering patterns in the Americas and Asia Segments stemming from geopolitical, trade and tariff-related uncertainty."
For 2027, Unifi said it will focus on leveraging the company's improved cost footprint while investing in innovation. The company also said it will manage the balance sheet "to ensure that the company remains better positioned to capitalize on improved business conditions and grow over time."
Ingle said as the company enters fiscal 2027, "We are seeing encouraging signs across several areas of our business, including Beyond Apparel, which continues to contribute to our improving financial performance. We remain focused on positioning the business for long-term growth, driving disciplined capital allocation and executing additional initiatives designed to further strengthen our businesses."
"While Unifi has entered the new fiscal year in a position of greater financial strength, our focus remains on executing our strategy, serving our customers and building on the momentum that we have established that will help create long-term value for our shareholders," the CEO added.
On an earnings call with analysts Thursday morning, Ingle said in the Americas, "We expect that the broader market environment will remain challenging in terms of revenues, but our focus will continue to remain on driving growth in margin-accretive revenues from our value-added products and Beyond Apparel initiatives. And this business segment is expected to yield improved year-over-year and sequential margins."
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