Second quarter results for synthetic and recycled yarn firm Unifi were buoyed by international growth in Asia and Brazil thanks to premium value-added products like the company’s Repreve family of eco-friendly yarns made from recycled materials. The overseas results outweighed domestic challenges for the textile firm.
Net sales were $155.2 million during the second quarter of fiscal year 2017, ended December 25, 2016. That’s compared to $156.3 million in the same period of 2015. Operating income increased by 4 percent to $9.0 million from $8.6 million in the same period.
Volume sold increased more than 10 percent during the second quarter.
“We are pleased with another quarter of solid results, as strong performance internationally counterbalanced headwinds in the domestic market, driven by weak retail sales and elevated inventory levels,” said Tom Caudle, president of Unifi. “In the short-term, we expect margin pressure in the International Segment due to increased import tariffs on raw materials for our Brazilian operations, and we expect domestic market conditions to remain difficult. As a result, we now expect fiscal 2017 results to be broadly consistent with fiscal 2016.”
The Greensboro, N.C.-based company expects U.S. business to pick up with customers increasingly seeking domestic options to increase their speed to market. The company is also continuing to focus on product innovation to spur ongoing growth.
Net sales for the first half of fiscal year 2017 were $315.1 million compared to $318.5 during the same period the previous year. Operating income grew 18 percent year-over-year, to $21.6 million in the first half of fiscal year 2017 compared to $18.3 million in 2016. Net income was $14.0 million, down from $14.5 million for the first half of the previous year.