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 Lebiedzinsk - Sidoti & Company, LLC - Analyst
: Good morning, everyone and thank you for taking the questions and, it's certainly nice to see continued progress, and it sounds like there's a lot
of opportunity here with the closing of the Madison facility here to optimize the business.
So first, I guess, just a quick housekeeping question, probably for A.J. As far as the FX impact in Brazil, maybe I missed that, but is there a way to
kind of think about how much the foreign exchange headwind was for the Brazil segment?
Question: Anthony Lebiedzinsk - Sidoti & Company, LLC - Analyst
: Sure. Okay, thanks, A.J. Al, you mentioned the carpet and military markets as an opportunity for Beyond Apparel, which you guys have talked about
previously as well. But just thinking about what you said as far as margins being better for that versus the other categories.
Is there a way to put a number on that as far as how to think about that and what the market opportunity is for that?
Question: Anthony Lebiedzinsk - Sidoti & Company, LLC - Analyst
: Okay. That's great to hear.
Question: Anthony Lebiedzinsk - Sidoti & Company, LLC - Analyst
: Okay. That sounds very promising. Okay. Got you. And then Eddie, I know you gave a tariff overview. It sounds like it could be a net positive. I know
there's a lot of moving parts. It's still a fluid situation. But just wondering, so with the -- just to kind of, I guess, maybe kind of related to this, but
with the administration also ending the de minimis rule exemption, how should we think about the impact on your business from that?
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MAY 01, 2025 / 1:00PM, UFI.N - Q3 2025 Unifi Inc Earnings Call
Question: Anthony Lebiedzinsk - Sidoti & Company, LLC - Analyst
: Got you. Yeah, yes. So I know it's still a moving target with respect to that. So we'll stay tuned, okay. And then -- so just to piggyback off of that as
far as just on the Asia segment, obviously, that's predominantly China. If the tariffs kind of stay in place like this for an extended period of time, is
that kind of what you're seeing -- you think 10% to 15% decline or is there any way to put some additional color on that as far as --
Question: Anthony Lebiedzinsk - Sidoti & Company, LLC - Analyst
: Absolutely. Okay. And then thinking about the cost savings from the facility consolidation, will we see some of that already in the first quarter of
fiscal '26? Or you think it will take longer for that to materialize?
Question: Anthony Lebiedzinsk - Sidoti & Company, LLC - Analyst
: Understood. Okay. And lastly for me, so, I know we talked about Beyond Apparel, you referenced carpet and military. Previously, you guys had also
talked about some other vertical markets like automotive and home furnishings.
And obviously, there's a lot of macroeconomic concerns and tariff concerns. But after we get past some of this noise here, do you still see that as
an opportunity to move beyond apparel?
Question: Anthony Lebiedzinsk - Sidoti & Company, LLC - Analyst
: All right. Well, that sounds good. Well, yeah, thank you and best of luck.
Question: Anthony Lebiedzinsk - Sidoti & Company, LLC - Analyst
: Thanks.
Question: Randy Baron - Pinnacle Associates, Ltd. - Analyst
: Hi guys, good morning. Can you hear me?
Question: Randy Baron - Pinnacle Associates, Ltd. - Analyst
: Great. A.J., this has been a super comprehensive Q&A. So most of my questions have been answered, but I just have a couple of administrative
ones and maybe one or two high level. Just to follow up on that last question, kind of that focus more on the REPREVE breakdown in Asia. I'm really
curious on that slide 11, roughly speaking, what percent of the Asia revenue is China today?
Question: Randy Baron - Pinnacle Associates, Ltd. - Analyst
: Okay. You've said that the transition in Americas is going to be done by the end of the fiscal year. Is that also roughly -- it sounds like it is, but is
that also -- I just want to make sure, is that roughly when all the cash costs are going to be complete?
Question: Randy Baron - Pinnacle Associates, Ltd. - Analyst
: Okay. And then just two very high-level questions as I hop back in queue. One is you talked, the REPREVE kind of over 50% of the pie is super
exciting. I'm curious if you could just rip a little bit and give some anecdotes about, is it coming from one customer in particular who's pushing?
You mentioned some of the logos during the script, but like just give us some sense of the fastest categories, the vertical, the applications growing.
And then just more broadly, at a high level, is there anything else that Unifi can sell? And congratulations on this recent successful completion.
Thanks so much.
Question: Randy Baron - Pinnacle Associates, Ltd. - Analyst
: Thank you.
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