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Fibres/​Yarns/​Fabrics

Tariff uncertainty bites at Unifi

Delayed orders from major customers had a negative impact on recovery plans.

2nd September 2025

Innovation in Textiles
 |  Greensboro, NC, USA

Clothing/​Footwear

US polyester leader Unifi, headquartered in Greensboro, North Carolina, continues to take steps towards becoming more profitable, but net sales for its year to June 29th 2025 were nevertheless down at $571.3 million compared to $582.2 million in annual net sales to June 29 2024.

Net loss, however, was reduced to $20.4 million in 2025 compared to $47.4 million in 2024.

 “Our results for the fourth quarter came in below our expectations due to softer ordering patterns, driven by recent tariff and trade uncertainties across our customer base,” said CEO Eddie Ingle. “This included delayed ordering patterns by major customers who wanted to wait and better assess how tariffs would impact global trading patterns. As a result, we believe that these are temporary impacts on our business, as we continue to see strong pent-up customer demand pending clarity on trade policies. Despite the challenging operating environment, we continued to make meaningful progress in optimising our business and streamlining operations.”

In February 2025, Unifi announced the closure and planned transition of certain domestic manufacturing operations, including its plant in Madison, North Carolina, in order to enhance operating efficiency, lower fixed costs, improve profitability and further strengthen its balance sheet. The associated real estate sale closed in May and manufacturing transition and restructuring charges will continue through the first quarter of fiscal 2026. Following this, Unifi expects to achieve annual cost savings of approximately $20 million, primarily comprised of lower headcount and operational synergies.

“As we look towards fiscal 2026, we recognise that our business performance is not yet where we want it to be and has been temporarily impacted by a volatile trade environment,” Ingle said. “We have made significant changes to strengthen our business, including lowering our costs and creating a leaner manufacturing footprint in the USA, which will drive higher utilisations as we move forward. We also believe that our proactive decisions have enhanced our competitive position, improved cash generation capabilities and strengthened our profitability profile, all of which will contribute to better performance for Unifi in the future. Most importantly, the conversations we are having with global brands confirm that the appetite for sustainable solutions and a commitment to textile circularity have not waned. While these strategic decisions are helping us navigate these temporary challenges, they are ultimately designed to position Unifi for long-term success.”

www.unifi.com

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