v3.25.1
Business Segment Information
 9 Months Ended
Mar. 30, 2025
Segment Reporting [Abstract]  
Business Segment Information

12. Business Segment Information

UNIFI defines operating segments as components of the organization for which discrete financial information is available and operating results are evaluated on a regular basis by UNIFI’s chief executive officer, who is the chief operating decision maker (the “CODM”), in order to assess performance and allocate resources. Characteristics of UNIFI which were relied upon in making the determination of reportable segments include the nature of the products sold, the internal organizational structure, the trade policies in the geographic regions in which UNIFI operates, and the information that is regularly reviewed by the CODM for the purpose of assessing performance and allocating resources.

UNIFI's three reportable segments are organized as follows:

•
The operations within the Americas Segment exhibit similar long-term economic characteristics and primarily sell into an economic trading zone covered by the United States-Mexico-Canada Agreement and the Dominican Republic-Central America Free Trade Agreement to similar customers utilizing similar methods of distribution. These operations derive revenues primarily from manufacturing synthetic and recycled textile products with sales primarily to yarn manufacturers, knitters, and weavers that produce yarn and/or fabric for the apparel, hosiery, automotive, home furnishings, industrial, medical, and other end-use markets principally in North and Central America. The Americas Segment consists of sales and manufacturing operations in the U.S., El Salvador, and Colombia.
•
The Brazil Segment primarily manufactures and sells polyester-based products to knitters and weavers that produce fabric for the apparel, automotive, home furnishings, industrial, and other end-use markets principally in Brazil. The Brazil Segment includes a manufacturing location and sales offices in Brazil.
•
The operations within the Asia Segment exhibit similar long-term economic characteristics and sell to similar customers utilizing similar methods of distribution primarily in Asia and Europe. The Asia Segment primarily sources synthetic and recycled textile products from third-party suppliers and sells to yarn manufacturers, knitters, and weavers that produce fabric for the apparel, automotive, home furnishings, industrial, and other end-use markets principally in Asia and Europe. The Asia Segment includes sales offices in China, Turkey, Hong Kong, and India.

UNIFI evaluates the operating performance of its segments based upon Segment (Loss) Profit, which represents segment gross (loss) profit plus segment depreciation expense. This measurement of segment profit or loss best aligns segment reporting with the current assessments and evaluations performed by, and information provided to, the CODM.

The accounting policies for the segments are consistent with UNIFI’s accounting policies. Intersegment sales are omitted from segment disclosures, as they are (i) insignificant to UNIFI’s segments and eliminated from consolidated reporting and (ii) excluded from segment evaluations performed by the CODM.

Selected financial information is presented below:

 

 

For the Three Months Ended March 30, 2025

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

93,544

 

 

$

28,124

 

 

$

24,889

 

 

$

146,557

 

Cost of sales

 

 

100,501

 

 

 

25,136

 

 

 

21,365

 

 

 

147,002

 

Gross (loss) profit

 

 

(6,957

)

 

 

2,988

 

 

 

3,524

 

 

 

(445

)

Segment depreciation expense

 

 

5,251

 

 

 

701

 

 

 

13

 

 

 

5,965

 

Segment (Loss) Profit

 

$

(1,706

)

 

$

3,689

 

 

$

3,537

 

 

$

5,520

 

 

 

 

For the Three Months Ended March 31, 2024

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

91,130

 

 

$

29,573

 

 

$

28,293

 

 

$

148,996

 

Cost of sales

 

 

94,644

 

 

 

25,736

 

 

 

23,852

 

 

 

144,232

 

Gross (loss) profit

 

 

(3,514

)

 

 

3,837

 

 

 

4,441

 

 

 

4,764

 

Segment depreciation expense

 

 

5,473

 

 

 

841

 

 

 

—

 

 

 

6,314

 

Segment Profit

 

$

1,959

 

 

$

4,678

 

 

$

4,441

 

 

$

11,078

 

 

 

 

For the Nine Months Ended March 30, 2025

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

262,922

 

 

$

89,916

 

 

$

79,971

 

 

$

432,809

 

Cost of sales

 

 

277,797

 

 

 

75,205

 

 

 

70,260

 

 

 

423,262

 

Gross (loss) profit

 

 

(14,875

)

 

 

14,711

 

 

 

9,711

 

 

 

9,547

 

Segment depreciation expense

 

 

15,995

 

 

 

2,044

 

 

 

44

 

 

 

18,083

 

Segment Profit

 

$

1,120

 

 

$

16,755

 

 

$

9,755

 

 

$

27,630

 

 

 

 

For the Nine Months Ended March 31, 2024

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

253,252

 

 

$

85,543

 

 

$

85,962

 

 

$

424,757

 

Cost of sales

 

 

270,884

 

 

 

76,400

 

 

 

71,648

 

 

 

418,932

 

Gross (loss) profit

 

 

(17,632

)

 

 

9,143

 

 

 

14,314

 

 

 

5,825

 

Segment depreciation expense

 

 

16,478

 

 

 

2,447

 

 

 

—

 

 

 

18,925

 

Segment (Loss) Profit

 

$

(1,154

)

 

$

11,590

 

 

$

14,314

 

 

$

24,750

 

 

 

The reconciliations of segment gross profit to consolidated loss before income taxes are as follows:

 

 

For the Three Months Ended

 

 

For the Nine Months Ended

 

 

 

March 30, 2025

 

 

March 31, 2024

 

 

March 30, 2025

 

 

March 31, 2024

 

Americas

 

$

(6,957

)

 

$

(3,514

)

 

$

(14,875

)

 

$

(17,632

)

Brazil

 

 

2,988

 

 

 

3,837

 

 

 

14,711

 

 

 

9,143

 

Asia

 

 

3,524

 

 

 

4,441

 

 

 

9,711

 

 

 

14,314

 

Segment gross (loss) profit

 

 

(445

)

 

 

4,764

 

 

 

9,547

 

 

 

5,825

 

Selling, general and administrative expenses

 

 

12,295

 

 

 

11,372

 

 

 

37,058

 

 

 

35,389

 

(Benefit) provision for bad debts

 

 

(255

)

 

 

179

 

 

 

(39

)

 

 

1,259

 

Gain on sale of assets

 

 

—

 

 

 

—

 

 

 

(4,296

)

 

 

—

 

Restructuring costs

 

 

1,320

 

 

 

—

 

 

 

1,320

 

 

 

5,101

 

Other operating expense, net

 

 

55

 

 

 

139

 

 

 

144

 

 

 

674

 

Operating loss

 

 

(13,860

)

 

 

(6,926

)

 

 

(24,640

)

 

 

(36,598

)

Interest income

 

 

(198

)

 

 

(432

)

 

 

(632

)

 

 

(1,710

)

Interest expense

 

 

2,417

 

 

 

2,407

 

 

 

7,322

 

 

 

7,505

 

Equity in loss of unconsolidated affiliates

 

 

216

 

 

 

604

 

 

 

467

 

 

 

311

 

Loss before income taxes

 

$

(16,295

)

 

$

(9,505

)

 

$

(31,797

)

 

$

(42,704

)

 

There have been no material changes in segment assets during fiscal 2025.