The following is a summary of the Unifi, Inc. (UFI) Q3 2024 Earnings Call Transcript:
Financial Performance:
Unifi reported an improved Q3 revenue, about 10% higher than the previous quarter, amounting to $149 million.
The Q3 EBITDA improved by $5 million compared to the last quarter.
Significant progress in financial results indicates that Unifi may have outpaced the inventory destocking phase.
Both Americas and Brazil segments registered increased net sales on a sequential basis.
For Q4, the anticipated net sales range between $160 million to $165 million, with an adjusted EBITDA between $4 million and $6 million.
Business Progress:
Unifi is gaining market share in both North America and Brazil due to a consolidated competitive set.
Cost reduction efforts in North America are boosting company profitability.
Revenues from the sales transformation initiative are positively impacting profit margins.
New Business developments, beyond apparel, are underway, with innovation for REPREVE in progress.
Recovery is consistent in Asia, with several initiatives in place to boost growth.
The company hosts its 7th Annual REPREVE Champions of Sustainability Awards to acknowledge brand and retail partners.
Unifi anticipates improved business results in Q4 and into the new fiscal year beginning July.
Despite a slight drop in revenue due to holidays, overall growth is expected across the company's three business segments, driven by volume increases and minor pricing uplifts.
Expansion is occurring beyond apparel, notably into the automotive and home markets, particularly mattresses.
Unifi plans to maintain focus on inventory turnover management, cost controls, and returns-focused projects in the future. They aim for an average of five inventory turnovers per year in the Americas.
More details: Unifi IR
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