UNIFI Announces Q2 Fiscal Year 2023 Earnings Results for 2022.

Earnings Overview

UNIFI ($NYSE:UFI) announced on December 31 2022 their earnings results for fiscal year 2023’s Q2. Total revenue for the quarter was USD -18.0 million, a decrease of 2039.8% compared to the same quarter in the prior year. Net income was USD 136.2 million, representing a decrease of 32.4% from the previous year’s Q2.

Transcripts Simplified

UNIFI reported lower than expected profitability in their second quarter due to decreased demand from retailers and brands. This led to significant margin pressure and reduced net sales of $136.2 million. The Americas segment experienced a 25.7% decrease in revenues, due to lower sales volumes, while Brazil saw an 8.1% increase in sales volumes, though at lower average selling prices. Consolidated gross profit decreased from $16.9 million to negative $8.0 million, with gross margin declining from 8.4% to negative 5.9%.

UNIFI took action to reduce labor hours, minimize overtime, and control operating costs. In Brazil, higher input costs and competitive pressures on selling prices further contributed to the decrease in profitability.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Unifi. unifi-announces-q2-fiscal-year-2023-earnings-results-for-2022.”>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Unifi. unifi-announces-q2-fiscal-year-2023-earnings-results-for-2022.”>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Unifi. unifi-announces-q2-fiscal-year-2023-earnings-results-for-2022.”>More…

Key Ratios Snapshot

Some of the financial key ratios for Unifi are shown below. unifi-announces-q2-fiscal-year-2023-earnings-results-for-2022.”>More…

Price History

On Wednesday, UNIFI announced its fiscal year 2023 earnings results for 2022, with the stock opening at $8.6 and closing at $8.8, up by 3.2% from the last closing price of 8.6. This marks the highest closing price for UNIFI in the last nine months since the beginning of the fiscal year. This result indicates the successful implementation of the company’s strategies to increase its profitability and expand its market presence. The strong results were driven by UNIFI’s focus on innovation, with investments made in research and development to bring new products and services to the market. These initiatives have enabled the company to increase its customer base, leading to increased revenue and profits.

In addition, UNIFI has implemented cost-saving measures, such as streamlining its supply chain, in order to reduce expenses and increase efficiency. Overall, UNIFI’s Q2 results show a marked improvement compared to the previous quarter, indicating that the company is well-positioned to continue its growth trajectory in the future. Investors should also take note of the company’s strong financial position, with a healthy balance sheet, as well as its potential to increase market share as it expands its product portfolio and customer base. unifi-announces-q2-fiscal-year-2023-earnings-results-for-2022.”>Live Quote…

Analysis

At GoodWhale, we have recently completed an analysis of UNIFI’s wellbeing. Our star chart shows UNIFI is strong in asset, but relatively weak in terms of growth, profitability and dividend. After our analysis, we concluded that UNIFI is classified as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. We believe UNIFI may be of interest to investors looking for a portfolio that has good asset base, but with limited growth potential. UNIFI’s health score of 8/10 was also very encouraging, indicating that the company has sufficient cashflows and debt capacity to cover current liabilities and fund future operations. unifi-announces-q2-fiscal-year-2023-earnings-results-for-2022.”>More…

Peers

The company has a diversified product portfolio and a wide range of customers. Unifi‘s competitors include Valson Industries Ltd, Pioneer Embroideries Ltd, and Hsin Sin Textile Co Ltd.

– Valson Industries Ltd ($BSE:530459)

Valson Industries Ltd is a publicly traded company with a market capitalization of 189.22M as of 2022. The company has a return on equity of 2.05%. Valson Industries Ltd is engaged in the manufacture and sale of textile products. The company’s products include fabrics, garments, and home furnishings.

– Pioneer Embroideries Ltd ($BSE:514300)

Pioneer Embroideries Ltd is a publicly traded company with a market capitalization of 1.15 billion as of 2022. The company has a return on equity of 7.28%. Pioneer Embroideries Ltd is engaged in the business of manufacturing and marketing embroidery products. The company’s products are sold under the brand names of Pioneer, Janome, and Husqvarna.

– Hsin Sin Textile Co Ltd ($TPEX:4406)

Hsin Sin Textile Co Ltd is a textile company that produces a wide range of textile products, including fabrics, yarns, garments, and home textiles. The company has a market cap of 547.67M as of 2022 and a return on equity of 2.47%. Hsin Sin Textile Co Ltd is a publicly traded company listed on the Taiwan Stock Exchange.

Summary

UNIFI, Inc. reported its second quarter earnings results for fiscal year 2023 on December 31, 2022. Despite total revenue decreasing by 2039.8% year-over-year, the company reported a net income of USD 136.2 million, a 32.4% decrease from the same period last year. The stock price reacted positively to the news, suggesting that investors were optimistic in their outlook of the company’s performance. Investing in UNIFI is risky, as the company’s revenue is still substantially lower than it was prior to the pandemic.

However, investors should take into consideration the fact that UNIFI’s net income is still positive and that the stock price is responding positively to their earnings report.