The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Anthony Lebiedzinski - Sidoti & Company, LLC - Analyst
: Good morning, everyone and thank you for taking the questions. I guess, first for the quarter, certainly nice to see the sales and gross margin
improvements in the Americas and Brazil segments. I know you guys talked about higher sales volumes in both of these and have good pricing in
Brazil.
So, you know, just wondering is the higher sales coming mostly from existing clients or did you, were you already able to pick up some, some new
clients? Or maybe it was just a combination of both that just, just wanted to get a better sense as to the sales volume drivers in those two key
segments.
Question: Anthony Lebiedzinski - Sidoti & Company, LLC - Analyst
: That's great to hear. Yeah, so it does sound like you guys are seeing some green shoots, which is definitely, reassuring. So, as far as, the opportunity
for carpet and the military and I'm sure you guys are working on others as well.
But, you know, as far as, maybe talk to us, maybe about like what you see as that, potential from those markets and as far as timing, it sounds like
you should pick up some business in the second half of this fiscal year. But maybe just, if you could provide some additional colour as far as how
you see that, maybe in fiscal '26.
Question: Anthony Lebiedzinski - Sidoti & Company, LLC - Analyst
: Thanks for that. And just switching to Asia. So, I know you said that you expect a similar performance in Q3 versus what you've seen here recently.
But the, historically, that that business has performed better, both sales and gross margin. So, when would be, when do you think it's reasonable
to assume that that piece of your business gets back to more or less, historical trends.
Question: Anthony Lebiedzinski - Sidoti & Company, LLC - Analyst
: Got you. Okay. All right. So as release the tariffs certainly realize it still remains a dynamic situation. But assuming that Canada and Mexico get
resolved and there is a sort of less long term pause or permanent pause.
And then China has a 10% tariff, with tariffs overall, given that you are largely US manufacturing company, it would tariffs be a net positive you
think for the company or any sort of way to frame that, that really would be helpful.
Question: Anthony Lebiedzinski - Sidoti & Company, LLC - Analyst
: Understood. Okay. Yeah. So certainly, it does seem like there is some potential movement, I guess. So, I guess we'll see what happens there. Now,
as far as the Madison North Carolina facility closure, I'm not sure if you're prepared yet to give a specific number, but maybe just ballpark estimate,
once this transition is completed, how much could we talk about as far as annual cost savings? With now Unifi running fewer facilities in the US.
Question: Anthony Lebiedzinski - Sidoti & Company, LLC - Analyst
: That's very helpful. Okay. All right. Well, yes. And then as far as other facilities, as I know you guys also sold the warehouse, so as you look at your
properties, do you think there could be some additional opportunities perhaps to, to optimize the overall structure or, or you think you're kind of
more or less kind of tapped out as far as opportunities in terms of just, just as overall your facilities and properties.
Question: Anthony Lebiedzinski - Sidoti & Company, LLC - Analyst
: Got you. Okay. And my last question, I guess, so as far as just to follow up on the Madison facility, what's the square footage of that property?
Question: Anthony Lebiedzinski - Sidoti & Company, LLC - Analyst
: Got it. All right. Well, that all sounds good. Well, thank you very much and best of luck.
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