v3.26.3
Business Segment Information
 3 Months Ended
Sep. 27, 2026
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 September 27, 2026

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

76,962

 

 

$

32,912

 

 

$

18,046

 

 

$

127,920

 

Cost of sales

 

 

72,230

 

 

 

27,776

 

 

 

15,433

 

 

 

115,439

 

Gross profit

 

 

4,732

 

 

 

5,136

 

 

 

2,613

 

 

 

12,481

 

Segment depreciation expense

 

 

4,595

 

 

 

869

 

 

 

18

 

 

 

5,482

 

Segment Profit

 

$

9,327

 

 

$

6,005

 

 

$

2,631

 

 

$

17,963

 

 

 

 

For the Three Months Ended September 28, 2025

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

85,196

 

 

$

28,761

 

 

$

21,717

 

 

$

135,674

 

Cost of sales

 

 

86,908

 

 

 

26,100

 

 

 

19,279

 

 

 

132,287

 

Gross (loss) profit

 

 

(1,712

)

 

 

2,661

 

 

 

2,438

 

 

 

3,387

 

Segment depreciation expense

 

 

4,877

 

 

 

783

 

 

 

14

 

 

 

5,674

 

Segment Profit

 

$

3,165

 

 

$

3,444

 

 

$

2,452

 

 

$

9,061

 

 

 

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

 

 

For the Three Months Ended

 

 

 

September 27, 2026

 

 

September 28, 2025

 

Americas

 

$

4,732

 

 

$

(1,712

)

Brazil

 

 

5,136

 

 

 

2,661

 

Asia

 

 

2,613

 

 

 

2,438

 

Segment gross profit

 

 

12,481

 

 

 

3,387

 

Selling, general and administrative expenses

 

 

11,462

 

 

 

11,948

 

Provision (benefit) for bad debts

 

 

568

 

 

 

(69

)

Restructuring costs, net

 

 

—

 

 

 

1,068

 

Other operating expense, net

 

 

475

 

 

 

70

 

Operating loss

 

 

(24

)

 

 

(9,630

)

Interest income

 

 

(470

)

 

 

(375

)

Interest expense

 

 

1,449

 

 

 

2,003

 

Equity in earnings of unconsolidated affiliate

 

 

(20

)

 

 

(97

)

Loss before income taxes

 

$

(983

)

 

$

(11,161

)

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

 

 

For the Three Months Ended

 

 

 

September 27, 2026

 

 

September 28, 2025

 

Americas

 

$

4,595

 

 

$

4,877

 

Brazil

 

 

869

 

 

 

783

 

Asia

 

 

18

 

 

 

14

 

Segment depreciation expense

 

 

5,482

 

 

 

5,674

 

Other depreciation and amortization expense

 

 

277

 

 

 

303

 

Depreciation and amortization expense

 

$

5,759

 

 

$

5,977

 

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

 

 

For the Three Months Ended

 

 

 

September 27, 2026

 

 

September 28, 2025

 

Americas

 

$

793

 

 

$

1,325

 

Brazil

 

 

340

 

 

 

677

 

Asia

 

 

50

 

 

 

4

 

Segment capital expenditures

 

 

1,183

 

 

 

2,006

 

Other capital expenditures

 

 

15

 

 

 

23

 

Capital expenditures

 

$

1,198

 

 

$

2,029

 

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

 

 

 

September 27, 2026

 

 

June 28, 2026

 

Americas

 

$

235,206

 

 

$

232,671

 

Brazil

 

 

100,750

 

 

 

99,435

 

Asia

 

 

32,249

 

 

 

34,470

 

Segment total assets

 

 

368,205

 

 

 

366,576

 

Other current assets

 

 

2,907

 

 

 

2,524

 

Other PP&E

 

 

12,265

 

 

 

12,821

 

Other operating lease assets

 

 

211

 

 

 

282

 

Other non-current assets

 

 

3,710

 

 

 

3,305

 

Investment in unconsolidated affiliate

 

 

1,074

 

 

 

925

 

Total assets

 

$

388,372

 

 

$

386,433

 

 

Geographic Data

 

 

 

For the Three Months Ended

 

Net Sales

 

September 27, 2026

 

 

September 28, 2025

 

U.S.

 

$

65,580

 

 

$

75,906

 

Brazil

 

 

32,912

 

 

 

28,761

 

China

 

 

17,589

 

 

 

21,640

 

Remaining Foreign Countries

 

 

11,839

 

 

 

9,367

 

Total

 

$

127,920

 

 

$

135,674

 

 

 

 

 

 

 

 

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

 

$

9,972

 

 

$

12,644

 

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

 

Long-Lived Assets

 

September 27, 2026

 

 

June 28, 2026

 

U.S.

 

$

127,979

 

 

$

132,160

 

Brazil

 

 

23,547

 

 

 

24,203

 

China

 

 

726

 

 

 

905

 

Remaining Foreign Countries

 

 

12,149

 

 

 

12,396

 

Total

 

$

164,401

 

 

$

169,664

 

 

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