Business Segment Information

6 Months Ended

Dec. 28, 2025

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 December 28, 2025
	Americas			Brazil		Asia		Total
Net sales	$	77,233		$	23,328	$	20,807	$	121,368
Cost of sales		77,632			22,272		17,853		117,757
Gross (loss) profit		(399	)		1,056		2,954		3,611
Segment depreciation expense		4,945			700		13		5,658
Segment Profit	$	4,546		$	1,756	$	2,967	$	9,269

	For the Three Months Ended December 29, 2024
	Americas			Brazil		Asia		Total
Net sales	$	83,095		$	27,482	$	28,303	$	138,880
Cost of sales		89,635			23,696		25,015		138,346
Gross (loss) profit		(6,540	)		3,786		3,288		534
Segment depreciation expense		5,334			602		14		5,950
Segment (Loss) Profit	$	(1,206	)	$	4,388	$	3,302	$	6,484

	For the Six Months Ended December 28, 2025
	Americas			Brazil		Asia		Total
Net sales	$	162,429		$	52,089	$	42,524	$	257,042
Cost of sales		164,540			48,372		37,132		250,044
Gross (loss) profit		(2,111	)		3,717		5,392		6,998
Segment depreciation expense		9,822			1,483		27		11,332
Segment Profit	$	7,711		$	5,200	$	5,419	$	18,330

	For the Six Months Ended December 29, 2024
	Americas			Brazil		Asia		Total
Net sales	$	169,378		$	61,792	$	55,082	$	286,252
Cost of sales		177,296			50,069		48,895		276,260
Gross (loss) profit		(7,918	)		11,723		6,187		9,992
Segment depreciation expense		10,744			1,343		31		12,118
Segment Profit	$	2,826		$	13,066	$	6,218	$	22,110

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

	For the Three Months Ended						For the Six Months Ended
	December 28, 2025			December 29, 2024			December 28, 2025			December 29, 2024
Americas	$	(399	)	$	(6,540	)	$	(2,111	)	$	(7,918	)
Brazil		1,056			3,786			3,717			11,723
Asia		2,954			3,288			5,392			6,187
Segment gross profit		3,611			534			6,998			9,992
Selling, general and administrative expenses		9,713			12,921			21,661			24,763
Provision (benefit) for bad debts		119			(96	)		50			216
Restructuring costs, net		785			—			1,853			—
Gain on sale of assets		—			(4,296	)		—			(4,296	)
Other operating expense (income), net		273			(431	)		343			89
Operating loss		(7,279	)		(7,564	)		(16,909	)		(10,780	)
Interest income		(473	)		(177	)		(848	)		(434	)
Interest expense		1,802			2,398			3,805			4,905
Equity in loss of unconsolidated affiliate		146			262			49			251
Loss before income taxes	$	(8,754	)	$	(10,047	)	$	(19,915	)	$	(15,502	)

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

	For the Three Months Ended				For the Six Months Ended
	December 28, 2025		December 29, 2024		December 28, 2025		December 29, 2024
Americas	$	4,945	$	5,334	$	9,822	$	10,744
Brazil		700		602		1,483		1,343
Asia		13		14		27		31
Segment depreciation expense		5,658		5,950		11,332		12,118
Other depreciation and amortization expense		290		384		593		763
Depreciation and amortization expense	$	5,948	$	6,334	$	11,925	$	12,881

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

	For the Three Months Ended				For the Six Months Ended
	December 28, 2025		December 29, 2024		December 28, 2025		December 29, 2024
Americas	$	643	$	2,452	$	1,968	$	4,188
Brazil		404		381		1,081		576
Asia		8		1		12		59
Segment capital expenditures		1,055		2,834		3,061		4,823
Other capital expenditures		—		92		23		121
Capital expenditures	$	1,055	$	2,926	$	3,084	$	4,944

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

	December 28, 2025		June 29, 2025
Americas	$	238,692	$	271,230
Brazil		86,968		99,477
Asia		34,557		35,413
Segment total assets		360,217		406,120
Other current assets		2,688		2,911
Other PP&E		14,621		11,887
Other operating lease assets		664		937
Other non-current assets		3,582		3,862
Investment in unconsolidated affiliate		1,141		1,151
Total assets	$	382,913	$	426,868

Geographic Data

	For the Three Months Ended				For the Six Months Ended
Net Sales	December 28, 2025		December 29, 2024		December 28, 2025		December 29, 2024
U.S.	$	68,701	$	74,944	$	144,607	$	152,574
Brazil		23,328		27,482		52,089		61,792
China		20,589		27,199		42,229		53,218
Remaining Foreign Countries		8,750		9,255		18,117		18,668
Total	$	121,368	$	138,880	$	257,042	$	286,252
Export sales from UNIFI’s U.S. operations to external customers	$	10,516	$	15,910	$	23,160	$	35,745

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

Long-Lived Assets	December 28, 2025		June 29, 2025
U.S.	$	140,410	$	146,017
Brazil		23,713		24,305
China		1,321		1,458
Remaining Foreign Countries		13,260		13,926
Total	$	178,704	$	185,706

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