The company reported a gross profit of $1.6 million, a significant improvement from the $8 million loss in the corresponding quarter of the previous year. The company's Americas Segment saw a $6.3 million increase in gross profit, while the Brazil Segment experienced a $1.8 million improvement, driven by higher sales volumes. Additionally, the Asia Segment continued to perform strongly, with a $1.5 million increase in gross profit and a 250-basis point improvement in gross margin, thanks to a robust mix of Repreve products, Unifi said in a press release.

Despite these improvements, Unifi still reported an operating loss of $17.6 million, although this was a decrease from the $19.8 million loss reported in the same period last year. The reduction in operating loss was consistent with the improvement in gross profit. The net loss for the quarter was $19.8 million, slightly higher than the $18.0 million loss in Q2 FY23. The company's adjusted EPS was minus $0.81, and adjusted EBITDA was minus $5.5 million.

“Our second quarter fiscal 2024 results were in line with our expectations and reflect sequential improvement in our underlying gross profit performance, despite the negative impact from the ongoing challenges in the apparel industry and its supply chains. The recent strategic actions aimed at further reducing ongoing costs, optimising our operations, and enhancing profitability will strengthen our position for the anticipated recovery in apparel demand in calendar 2024,” said Eddie Ingle, chief executive officer of Unifi.

Fibre2Fashion News Desk (DP)