Greensboro – Unifi, the US‑based manufacturer of Repreve recycled yarns, has narrowed its losses in in its third fiscal quarter, despite lower year‑on‑year sales.
The Greensboro, North Carolina company remains loss‑making overall but says cost reductions and portfolio shifts, including new yarn platforms such as Luxel, are strengthening its position with global knitting mills and brand partners.
Net sales for the quarter were US$130 million, down 11.3% on the same period a year earlier, reflecting subdued ordering patterns amid geopolitical, trade and tariff uncertainty across key textile markets. However, revenues increased 7.1% sequentially and management expects to support higher working capital in coming quarters as demand gradually recovers.
The Americas business, which includes core polyester and recycled yarns used in circular and warp‑knitted fabrics for apparel, automotive and home textiles, saw gross profit increase by US$10.6 million, while Brazil and Asia recorded modest declines due to pricing pressure and lower volumes respectively.
Revenues from Repreve fibre products reached US$38.2 million and accounted for 29% of quarterly net sales, up from 28% in the previous quarter, underlining the continued role of recycled feedstock in Unifi’s offer to knitting mills and brands.
Repreve is based on proprietary recycling technology that converts multiple waste streams – including plastic bottles, textile waste and recycled yarn – into traceable performance fibres and resins for applications ranging from apparel and footwear to furnishings, industrial and mobility textiles.
Chief executive Eddie Ingle said the business is “seeing momentum” in these areas, which can include knitted and warp‑knitted solutions for automotive interiors, medical textiles and other functional end‑uses where recycled content and performance are increasingly specified.
“We are pleased to report that the impact of our team’s hard work is beginning to translate into improved financial performance, highlighted by improved gross profit and debt reduction,” he said.
“These results were driven by the actions we have taken over the past several quarters to realign our cost structure and optimize our operations, and give us confidence that we can generate stronger profitability and cash flow from a lower revenue base moving forward.
“In addition, we remain focused on partnering with our global customers to deliver innovative solutions to address their evolving needs, which will serve us well in supporting sustainable, long-term market and business growth.”
The company also highlighted the recent introduction of Luxel, described as a linen‑inspired, easy‑care performance yarn designed for both comfort and sustainability. Luxel targets brands seeking the aesthetic of linen combined with easier processing and care, suggesting potential for knitters to develop lightweight jerseys and fine‑gauge outerwear with a natural look but improved handling and durability compared to traditional flax‑based blends.
