UNIFI®, Makers of REPREVE®, Provides Business Update and Schedules Second Quarter Fiscal 2023 Earnings Conference Call
January 19 2023 - 6:00AM
Business Wire
Demand trends across apparel producers continue
to weigh on near-term operating performance
Unifi, Inc. (NYSE: UFI) (together with its consolidated
subsidiaries, “UNIFI”), makers of REPREVE and one of the world’s
leading innovators in recycled and synthetic yarns, today announced
preliminary results for its second fiscal quarter ended January 1,
2023 and scheduled its second quarter fiscal 2023 earnings
conference call.
For the second quarter of fiscal 2023, UNIFI
expects:
- Net sales between $135 million and $137 million, a decrease of
approximately 24% to 25% from the first quarter of fiscal 2023,
compared to the previous expectation of a 10% to 15% decrease;
- Negative gross margin between (5.5%) and (6.5%);
- Operating loss between $19.0 million and $21.0 million;
- Loss before income taxes between $20.0 million and $22.0
million; and
- Adjusted EBITDA between ($12.0) million and ($14.0) million,
compared to the previous expectation of between $0.0 million and
($5.0) million.
Eddie Ingle, Chief Executive Officer of UNIFI, said, “Our
business continued to face a difficult operating environment in the
second fiscal quarter, and our results for the period are a
reflection of continued demand disruption from inventory destocking
and slowed global apparel production, which has been influenced by,
among other things, the impact of COVID-19 in China. This
weaker-than-expected demand has been prevalent across our apparel
customers as they work through a normalization in their supply
chains and aim to reduce excess inventories. In response to these
temporary challenges, we executed a number of cost controls, and
other savings measures are ongoing. In addition, we are benefiting
from the additional liquidity afforded by our credit facility that
we previously announced was amended, expanded and extended on
October 28, 2022.”
Ingle continued, “As we look forward, the mid- and long-term
drivers of our business remain intact. We expect to see
improvements in volumes and operating performance as we move
through calendar 2023 and customer ordering patterns begin to
normalize. We should also experience improved performance and
efficiencies across the business as a result of various cost saving
measures currently in effect, along with stabilized raw material
input costs. Our global business model and the long-term demand for
sustainable solutions remains unchanged.”
The preliminary, unaudited information contained herein remains
subject to confirmation and finalization based on UNIFI’s
quarter-end closing procedures, including the execution of internal
controls over financial reporting and the subsequent occurrence or
identification of events prior to the formal issuance of the
quarterly financial statements.
UNIFI Schedules Second Quarter Fiscal
2023 Earnings Conference Call
UNIFI will host a conference call at 8:30 a.m., Eastern Time, on
Thursday, February 2, 2023, to discuss its second quarter fiscal
2023 financial results. The second quarter fiscal 2023 financial
results and supporting materials will be available after the close
of market trading on Wednesday, February 1, 2023 on UNIFI’s website
at http://investor.unifi.com. The conference call can be accessed
approximately 10 minutes prior to the beginning of the call by
dialing (800) 715-9871 (Domestic) or (646) 307-1963 (International)
and, when prompted, providing conference ID number 1094008. There
will also be a live audio webcast of the call, which can be
accessed on UNIFI’s website at http://investor.unifi.com. A replay
of the conference call will be available approximately two hours
following the call through Thursday, February 9, 2023 and can be
accessed via UNIFI’s website at http://investor.unifi.com. In
addition, presentation slides will be available on UNIFI’s website
for 12 months following the call.
About UNIFI
Unifi, Inc. (NYSE: UFI) is a global textile solutions provider
and one of the world's leading innovators in manufacturing
synthetic and recycled performance fibers. Through REPREVE, one of
UNIFI's proprietary technologies and the global leader in branded
recycled performance fibers, UNIFI has transformed more than 35
billion plastic bottles into recycled fiber for new apparel,
footwear, home goods, and other consumer products. UNIFI
continually innovates technologies to meet consumer needs in
moisture management, thermal regulation, antimicrobial protection,
UV protection, stretch, water resistance, and enhanced softness.
UNIFI collaborates with many of the world's most influential brands
in the sports apparel, fashion, home, automotive, and other
industries. For more information about UNIFI, visit
www.unifi.com.
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Davis Snyder Alpha IR Group 312-445-2870 UFI@alpha-ir.com
Unifi (NYSE:UFI)
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