Business Segment Information

12 Months Ended

Jun. 29, 2025

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 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

	Fiscal 2023
	Americas			Brazil		Asia		Total
Net sales	$	389,662		$	119,062	$	114,803	$	623,527
Cost of sales		404,321			106,900		98,065		609,286
Gross (loss) profit		(14,659	)		12,162		16,738		14,241
Segment depreciation expense		22,044			2,035		—		24,079
Segment Profit	$	7,385		$	14,197	$	16,738	$	38,320

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

	Fiscal 2025			Fiscal 2024			Fiscal 2023
Americas	$	(20,217	)	$	(17,630	)	$	(14,659	)
Brazil		16,027			14,755			12,162
Asia		12,608			19,491			16,738
Segment gross profit		8,418			16,616			14,241
SG&A		49,005			46,632			47,345
(Benefit) provision for bad debts		(166	)		1,571			(89	)
Restructuring costs		8,924			5,101			—
(Gain) loss on sale of assets		(40,079	)		62			278
Other operating expense, net		254			671			7,578
Operating loss		(9,520	)		(37,421	)		(40,871	)
Interest income		(888	)		(2,136	)		(2,109	)
Interest expense		9,520			9,862			7,577
Equity in loss (earnings) of unconsolidated affiliates		477			390			(896	)
Loss before income taxes	$	(18,629	)	$	(45,537	)	$	(45,443	)

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

	Fiscal 2025		Fiscal 2024		Fiscal 2023
Americas	$	21,003	$	22,154	$	22,044
Brazil		2,771		3,257		2,035
Asia		57		10		—
Segment depreciation expense		23,831		25,421		24,079
Other depreciation and amortization expense		1,453		2,248		3,107
Depreciation and amortization expense	$	25,284	$	27,669	$	27,186

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

	Fiscal 2025		Fiscal 2024		Fiscal 2023
Americas	$	8,592	$	8,843	$	25,943
Brazil		1,642		1,815		10,244
Asia		67		247		41
Segment capital expenditures		10,301		10,905		36,228
Other capital expenditures		187		284		206
Capital expenditures	$	10,488	$	11,189	$	36,434

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

	June 29, 2025		June 30, 2024
Americas	$	271,230	$	300,977
Brazil		99,477		96,728
Asia		35,413		44,956
Segment total assets		406,120		442,661
Other current assets		2,911		5,480
Other PP&E		11,887		12,501
Other operating lease assets		937		1,522
Other non-current assets		3,862		5,477
Investments in unconsolidated affiliates		1,151		1,603
Total assets	$	426,868	$	469,244

Geographic Data

Net Sales	Fiscal 2025		Fiscal 2024		Fiscal 2023
U.S.	$	309,752	$	314,027	$	355,197
Brazil		118,726		117,783		119,061
China		99,475		112,650		100,183
Remaining Foreign Countries		43,391		37,749		49,086
Total	$	571,344	$	582,209	$	623,527
Export sales from UNIFI’s U.S. operations to external customers	$	67,892	$	65,666	$	52,051

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

Long-Lived Assets	June 29, 2025		June 30, 2024
U.S.	$	146,017	$	167,134
Brazil		24,305		30,569
China		1,458		1,375
Remaining Foreign Countries		13,926		15,841
Total	$	185,706	$	214,919

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