The company posted net sales of $130 million for the quarter ended March 29, 2026, down 11.3 per cent year on year (YoY) from $146.6 million. However, sales increased 7.1 per cent sequentially from the previous quarter.
US-based Unifi Inc has reported improved Q3 FY26 profitability despite an 11.3 per cent YoY decline in net sales to $130 million.
The gross profit rose to $9.1 million from a loss a year earlier, while net loss narrowed sharply to $2.3 million.
Adjusted EBIT turned positive at $4 million, supported by cost reductions, operational optimisation and stronger Repreve product sales.
Eddie Ingle, CEO at Unifi said the company’s operational and cost restructuring measures were beginning to translate into improved financial performance. “We are pleased to report that the impact of our team’s hard work is beginning to translate into improved financial performance, highlighted by improved gross profit and debt reduction,” added Ingle.
Gross margin returns to positive territory
The gross profit improved significantly to $9.1 million compared to a gross loss of $0.4 million in Q3 FY25. Gross margin rose to 7 per cent from negative 0.3 per cent a year earlier, supported by multi-year cost reduction efforts and operational optimisation, Unifi said in a press release.
Net loss narrowed sharply to $2.3 million, or $0.12 per diluted share, from $16.8 million, or $0.92 per diluted share, in the corresponding quarter last year. Adjusted net loss improved to $3.8 million from $13.9 million in Q3 FY25, while adjusted EBITDA turned positive at $4 million against a negative $4.9 million a year ago.
Revenue from Repreve fibre products reached $38.2 million during the quarter and accounted for 29 per cent of total net sales, up from $34.3 million and 28 per cent share in the second quarter of FY26.
Unifi also generated $8 million in cash from operating activities during the quarter and $24.4 million during the first nine months of FY26. Debt principal stood at $94.9 million, while net debt was reduced to $68.4 million as of March 29, 2026.
Selling, general and administrative (SG&A) expenses declined 9 per cent YoY to $11.2 million, driven by continued cost-saving initiatives.
“These results were driven by the actions we have taken over the past several quarters to realign our cost structure and optimise our operations and give us confidence that we can generate stronger profitability and cash flow from a lower revenue base moving forward,” said Ingle.
The Americas segment recorded the largest improvement in gross profit due to cost reductions, partially offset by lower sales. Meanwhile, the Brazil segment faced import pricing pressure, and the Asia segment was impacted by lower sales volumes.
Innovation and sustainability focus continue
During the quarter, Unifi published its ‘Sustainability Snapshot’ highlighting progress in textile-to-textile recycling and launched Luxel, a linen-inspired easy-care performance yarn.
Looking ahead, the company expects the fourth quarter of FY26 to benefit from responsive price increases linked to petrochemical-related inflation.
“As we enter the fourth quarter and look towards the remainder of calendar year 2026, we are encouraged by the momentum we are seeing across our businesses,” Ingle said.
“Our innovative beyond apparel business is continuing to gain traction, which should help support improved financial results,” he added.
Fibre2Fashion News Desk (SG)
