Unifi (UFI) Q1 2027 earnings summary

Executive summary

• Q1 FY27 net sales fell 5.7% YoY to $127.9M, while gross profit rose to $12.5M from $3.4M and net loss narrowed to $2.0M from $11.4M.

• Adjusted EBITDA improved to $6.1M from a $2.5M loss, supported by cost reductions, footprint consolidation and improved sales mix.

• Operating cash flow was $3.7M; an October $60.0M property sale funded full repayment of the $55.5M term loan.

Financial highlights

• Net sales were $127.9M, down 5.7% YoY; sales volume declined 12.0%, partly offset by a 6.3% increase in weighted average selling prices.

• Gross profit rose to $12.5M from $3.4M, and gross margin increased to 9.8% from 2.5%, supported by cost savings and higher conversion margins.

• Net loss narrowed to $2.0M from $11.4M; diluted EPS was $(0.11) versus $(0.62).

• Adjusted EBITDA was $6.1M versus a $2.5M loss; adjusted EPS was $(0.09) versus $(0.56).

• SG&A declined to $11.5M from $11.9M, while operating cash flow was $3.7M versus cash used of $8.9M.

Outlook and guidance

• FY27 sales and profitability are expected to improve YoY as prior strategic actions deliver full-year benefits; priorities include cash generation and balance-sheet strength.

• Q2 Americas outlook cites cost savings and stable demand; Brazil sales and profitability are expected to be generally consistent with Q2 FY26, with inflation pressuring working capital.

• Asia is expected to remain pressured by regional softness and geopolitical volatility; its asset-light model is expected to support stable profitability.

• Management expects fiscal H2 to improve over H1; YarnProof-related impact is expected in Q4 FY27 and Q1 FY28.