Net sales of American firm Unifi at $149 mn in Q3 FY24

Gross profit for the quarter stood at $4.8 million, a significant decrease from $9.7 million in the third quarter of fiscal 2023. The decline in the Americas segment's profitability, which dropped by $6.7 million, was mainly due to the timing and extent of comparable holiday shutdown periods. On a positive note, the Brazil Segment saw an improvement in gross profit by $1.5 million, driven by favourable pricing and volume gains. The Asia segment also reported a slight increase in gross profit, the company said in a press release.

Operating results reflected these challenges, with an operating loss of $6.9 million compared to a loss of $2.7 million in the prior year’s corresponding quarter. This was followed by a net loss of $10.3 million, doubling the loss of $5.2 million reported in Q3 FY23. Additionally, the company's adjusted earnings per share (EPS) worsened to minus $0.57 from minus $0.25, and adjusted EBITDA turned negative at $0.8 million, a stark contrast to the $5 million reported last year.

“Our top-line results exhibit substantial improvement over the previous quarter and we delivered our second consecutive quarter of sequential gross profit improvement, giving us confidence that the apparel inventory destocking period reached a bottom and demand is beginning to return to more normalized levels,” said Eddie Ingle, chief executive officer of Unifi.

Fibre2Fashion News Desk (DP)