v3.26.1
Business Segment Information
 12 Months Ended
Jun. 28, 2026
Segment Reporting [Abstract]  
Business Segment Information

24. 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 provided to and 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 recycled and synthetic 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 recycled and synthetic textile products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, 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 recycled and synthetic textile products from third-party suppliers and sells to yarn manufacturers, knitters, and weavers principally in Asia and Europe that produce fabric for the apparel, automotive, home furnishings, industrial, and other end-use markets. The Asia Segment includes sales offices in China, Turkey, Hong Kong, and India.

UNIFI evaluates the operating performance of its segments based upon Segment Profit, which represents segment gross profit (loss) 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. However, intersegment technologies expense charged from the Americas Segment to the Asia Segment is not eliminated from segment results. The technologies expense (i) reflects the sharing of certain manufacturing know-how, processes, and product technical information and design and (ii) is included in the segment evaluations performed by the CODM.

Selected financial information is presented below:

 

 

Fiscal 2026

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

325,210

 

 

$

115,148

 

 

$

90,945

 

 

$

531,303

 

Cost of sales

 

 

320,397

 

 

 

101,008

 

 

 

79,442

 

 

 

500,847

 

Gross profit

 

 

4,813

 

 

 

14,140

 

 

 

11,503

 

 

 

30,456

 

Segment depreciation expense

 

 

19,559

 

 

 

3,271

 

 

 

57

 

 

 

22,887

 

Segment Profit

 

$

24,372

 

 

$

17,411

 

 

$

11,560

 

 

$

53,343

 

 

 

Fiscal 2025

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

347,931

 

 

$

118,726

 

 

$

104,687

 

 

$

571,344

 

Cost of sales

 

 

368,148

 

 

 

102,699

 

 

 

92,079

 

 

 

562,926

 

Gross (loss) profit

 

 

(20,217

)

 

 

16,027

 

 

 

12,608

 

 

 

8,418

 

Segment depreciation expense

 

 

21,003

 

 

 

2,771

 

 

 

57

 

 

 

23,831

 

Segment Profit

 

$

786

 

 

$

18,798

 

 

$

12,665

 

 

$

32,249

 

 

 

Fiscal 2024

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

344,256

 

 

$

117,783

 

 

$

120,170

 

 

$

582,209

 

Cost of sales

 

 

361,886

 

 

 

103,028

 

 

 

100,679

 

 

 

565,593

 

Gross (loss) profit

 

 

(17,630

)

 

 

14,755

 

 

 

19,491

 

 

 

16,616

 

Segment depreciation expense

 

 

22,154

 

 

 

3,257

 

 

 

10

 

 

 

25,421

 

Segment Profit

 

$

4,524

 

 

$

18,012

 

 

$

19,501

 

 

$

42,037

 

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

 

 

Fiscal 2026

 

 

Fiscal 2025

 

 

Fiscal 2024

 

Americas

 

$

4,813

 

 

$

(20,217

)

 

$

(17,630

)

Brazil

 

 

14,140

 

 

 

16,027

 

 

 

14,755

 

Asia

 

 

11,503

 

 

 

12,608

 

 

 

19,491

 

Segment gross profit

 

 

30,456

 

 

 

8,418

 

 

 

16,616

 

SG&A

 

 

44,681

 

 

 

49,005

 

 

 

46,632

 

(Benefit) provision for bad debts

 

 

(156

)

 

 

(166

)

 

 

1,571

 

Restructuring costs, net

 

 

1,853

 

 

 

8,924

 

 

 

5,101

 

Loss (gain) on sale of assets

 

 

(4

)

 

 

(40,079

)

 

 

62

 

Other operating (income) expense, net

 

 

(1,270

)

 

 

254

 

 

 

671

 

Operating loss

 

 

(14,648

)

 

 

(9,520

)

 

 

(37,421

)

Interest income

 

 

(1,691

)

 

 

(888

)

 

 

(2,136

)

Interest expense

 

 

6,805

 

 

 

9,520

 

 

 

9,862

 

Equity in loss of unconsolidated affiliates

 

 

266

 

 

 

477

 

 

 

390

 

Loss before income taxes

 

$

(20,028

)

 

$

(18,629

)

 

$

(45,537

)

The reconciliations of segment depreciation and amortization expense to consolidated depreciation and amortization expense are as follows:

 

 

Fiscal 2026

 

 

Fiscal 2025

 

 

Fiscal 2024

 

Americas

 

$

19,559

 

 

$

21,003

 

 

$

22,154

 

Brazil

 

 

3,271

 

 

 

2,771

 

 

 

3,257

 

Asia

 

 

57

 

 

 

57

 

 

 

10

 

Segment depreciation expense

 

 

22,887

 

 

 

23,831

 

 

 

25,421

 

Other depreciation and amortization expense

 

 

1,163

 

 

 

1,453

 

 

 

2,248

 

Depreciation and amortization expense

 

$

24,050

 

 

$

25,284

 

 

$

27,669

 

The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows:

 

 

Fiscal 2026

 

 

Fiscal 2025

 

 

Fiscal 2024

 

Americas

 

$

2,806

 

 

$

8,592

 

 

$

8,843

 

Brazil

 

 

2,033

 

 

 

1,642

 

 

 

1,815

 

Asia

 

 

62

 

 

 

67

 

 

 

247

 

Segment capital expenditures

 

 

4,901

 

 

 

10,301

 

 

 

10,905

 

Other capital expenditures

 

 

101

 

 

 

187

 

 

 

284

 

Capital expenditures

 

$

5,002

 

 

$

10,488

 

 

$

11,189

 

 

The reconciliations of segment total assets to consolidated total assets are as follows:

 

 

June 28, 2026

 

 

June 29, 2025

 

Americas

 

$

232,671

 

 

$

271,230

 

Brazil

 

 

99,435

 

 

 

99,477

 

Asia

 

 

34,470

 

 

 

35,413

 

Segment total assets

 

 

366,576

 

 

 

406,120

 

Other current assets

 

 

2,524

 

 

 

2,911

 

Other PP&E

 

 

12,821

 

 

 

11,887

 

Other operating lease assets

 

 

282

 

 

 

937

 

Other non-current assets

 

 

3,305

 

 

 

3,862

 

Investments in unconsolidated affiliates

 

 

925

 

 

 

1,151

 

Total assets

 

$

386,433

 

 

$

426,868

 

Geographic Data

 

Net Sales

 

Fiscal 2026

 

 

Fiscal 2025

 

 

Fiscal 2024

 

U.S.

 

$

287,474

 

 

$

309,752

 

 

$

314,027

 

Brazil

 

 

115,148

 

 

 

118,726

 

 

 

117,783

 

China

 

 

90,114

 

 

 

99,475

 

 

 

112,650

 

Remaining Foreign Countries

 

 

38,567

 

 

 

43,391

 

 

 

37,749

 

Total

 

$

531,303

 

 

$

571,344

 

 

$

582,209

 

 

 

 

 

 

 

 

 

 

 

Export sales from UNIFI’s U.S. operations to external customers

 

$

45,796

 

 

$

67,892

 

 

$

65,666

 

 

The net sales amounts are based on the operating locations from where the items were produced or distributed.

 

Long-Lived Assets

 

June 28, 2026

 

 

June 29, 2025

 

U.S.

 

$

132,160

 

 

$

146,017

 

Brazil

 

 

24,203

 

 

 

24,305

 

China

 

 

905

 

 

 

1,458

 

Remaining Foreign Countries

 

 

12,396

 

 

 

13,926

 

Total

 

$

169,664

 

 

$

185,706

 

Long-lived assets are comprised of PP&E, net; operating lease assets; intangible assets, net; investments in unconsolidated affiliates; and other non-current assets.