Why Unifi (UFI) Shares Are Falling Today

  • Unifi Inc UFI expects second-quarter FY23 sales of $135 million – $137 million, against the consensus of $142.15 million.
  • The revenue guidance represents a 24% – 25% decrease from Q1 FY23, against the previous expectation of a 10% – 15% reduction.
  • The company specified that the demand trends across apparel producers continue to weigh on its near-term operating performance.
  • The company expects a Q2 gross margin of (5.5%) – (6.5%). Unifi sees an operating loss of $(19) million – $(21) million in the quarter.
  • UFI sees Adjusted EBITDA of ($12.0) million – ($14.0) million, compared to the previous expectation of $0.0 million – ($5.0) million.
  • “Our business continued to face a difficult operating environment in the second fiscal quarter, and our results for the period are a reflection of continued demand disruption from inventory destocking and slowed global apparel production, which has been influenced by, among other things, the impact of COVID-19 in China,” said CEO Eddie Ingle.
  • In response to these temporary challenges, the company said it executed several cost controls, with other savings measures ongoing.
  • Price Action: UFI shares are trading lower by 10.79% at $7.94 on the last check Thursday.
  • Photo Via Company

Image and article originally from www.benzinga.com. Read the original article here.