Unifi, the US fibre innovator best known for its recycled polyester platform Repreve, has reported a softer start to fiscal 2026 as trade and tariff-related uncertainty continued to disrupt customer ordering patterns across regions. For the quarter ended 28 September 2025, net sales declined 7.9% year on year to $135.7 million, with management highlighting volatility in all business segments.

Repreve fibre products delivered $39.3 million, representing 29% of quarterly sales, compared with $44.7 million and 30% a year earlier. Gross profit fell to $3.4 million with a gross margin of 2.5% (Q1 FY25: $9.5 million, 6.4%), reflecting lower volumes and pricing pressure, particularly in Brazil, alongside production variability in the Americas and Asia.

The company posted an operating loss of $9.6 million and a net loss of $11.4 million (or $0.62 per diluted share), which included $1.1 million of transition costs tied to manufacturing consolidation. Adjusted net loss was $10.3 million, while adjusted EBITDA was $(2.5) million versus $3.3 million in the prior-year period.

Chief executive Eddie Ingle said the quarter came in below expectations amid ongoing macro and policy headwinds but pointed to positive dialogue with brand and retail partners. Unifi has launched a further restructuring programme to sharpen its cost base, including reductions in variable manufacturing costs and selected salaried roles in the United States, alongside targeted price increases and tighter working capital management. The company expects the measures to improve earnings and operating cash flows over the remainder of the year.

Innovation remains a strategic priority. Last Autumn, Unifi introduced A.M.Y. Peppermint, a naturally deodorising yarn engineered for long-lasting freshness, extending its portfolio of performance fibres with a sustainability focus. The business will continue to minimise operational and capital expenditure through fiscal 2026, while preparing to leverage any improvement in the trade environment.

“Looking ahead, our focus remains on strengthening the business and positioning Unifi to capitalise on the investments we have made in new innovations and circular textile solutions,” Ingle said. “We expect to see the benefits in the near term of the cost and pricing actions, putting us in a better position to return value over the long term.”

www.unifi.com

www.repreve.com