Unifi hopes tariff clarity will revive orders after Q4 sales fall

U.S. recycled polyester supplier Unifi Inc (UFI.N) reported a 12% fall in fourth-quarter sales on Thursday, as customers delayed orders amid uncertainty over tariffs.

Chief Executive Eddie Ingle said the weaker results reflected “temporary impacts” from a volatile trade environment, but added that underlying demand for recycled fibers remains strong.

“We continue to see strong pent-up customer demand pending clarity on trade policies,” Ingle said.

The company, best known for its Repreve-branded recycled polyester, posted net sales of $138.5 million in the quarter ended June 29, compared with $157.2 million a year earlier. Sales from Repreve made up $42.1 million, or about 30% of revenue.

Also Read: French Fashion Retail Sales Drop 1.6% in July

Unifi swung to a net profit of $15.5 million, versus a year-earlier loss, helped by a $35.8 million gain from the sale of its Madison, North Carolina manufacturing facility. Excluding the gain and transition costs, it reported a net loss of $10.6 million and an adjusted EBITDA loss of $4.1 million.

The Madison plant closure, announced in February, is expected to generate about $20 million in annual cost savings and reduce debt.

Looking ahead to fiscal 2026, Ingle said performance is “not yet where we want it to be” but highlighted resilient demand from global apparel brands for sustainable materials.

Shares of Unifi rose 3% in after-hours trading following the results.