Unifi Inc., the recycled and synthetic yarn maker, closed its fiscal fourth quarter with a smaller net loss while reporting higher sales and gross profit, driven by cost-cutting efforts. The company posted a net loss of $1.2 million, or 6 cents per share, compared with net income of $15.5 million, or 82 cents per share, in the same period last year. That prior-year figure included a $35.8 million gain from selling a manufacturing facility, partly offset by $10.6 million in transition costs.
Net sales rose 4.1 percent to $144.2 million, with Repreve Fiber product revenues hitting $40.2 million, or 28 percent of net sales. Gross profit reached $14.3 million, reversing a gross loss of $1.1 million a year earlier. Selling, general and administrative expenses fell 1 percent to $11.8 million, which the company attributed to cost reduction efforts.
CEO Eddie Ingle said the company closed fiscal 2026 with clear momentum, citing improved profitability and cash generation. He noted that disciplined execution of cost reduction, operational optimization, and portfolio management initiatives had lowered the revenue break-even point. The company also said it entered an agreement to sell non-strategic real estate assets in Yadkin County, N.C., for $60 million to reduce debt. The property includes about 120 acres of land and 500,000 square feet of warehouse space at the Yadkinville operation, which remains open. The buyer is data center operator WhiteFiber, through its subsidiary Enovum Data Centers Corp. The sale is expected to close in the fourth quarter.
Higher quarterly sales were primarily due to the Brazil segment, partially offset by tepid customer ordering in the Americas and Asia amid geopolitical, trade, and tariff uncertainty. Looking ahead to fiscal 2027, Unifi plans to leverage its improved cost footprint, invest in innovation, and strengthen its balance sheet. Ingle noted encouraging signs in areas like Beyond Apparel, which continues to contribute to financial performance, while expecting the broader market in the Americas to remain challenging but focusing on margin-accretive growth.
Originally reported by WWD