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.
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