Company overview

UNIFI supplies yarn manufacturers, knitters and weavers that turn its products into yarn and fabric, mostly for apparel. It makes products to customer specifications and ships against their orders; these textile manufacturers, rather than the clothing brands they serve, generally pay UNIFI. It manufactures in the Americas and Brazil, while its Asia business sources products from outside suppliers for resale rather than operating its own factories.

Its flagship REPREVE brand supplies recycled polyester and nylon products. UNIFI processes discarded plastic bottles into material used in its recycled-polyester supply chain and also sells that material to other manufacturers. REPREVE’s traceability and certification help customers support claims about recycled content. Another important business is yarn that meets regional trade-agreement and U.S. Berry Amendment origin requirements. Qualifying regional inputs are necessary for production, and meeting trade-agreement rules helps customers obtain duty-free treatment for apparel.

Sales depend on programs run by a relatively small group of brand partners, even though no single direct customer supplies a dominant share of company revenue. Brands and customers can stop using its products with little notice or penalty. Earnings also depend on raw-material and energy costs and how quickly UNIFI can pass increases through to customers.