Unifi Inc (UFI) 2026 Q1 法說會逐字稿

Good morning and thank you for attending Unifi's First Quarter Fiscal 2026 Earnings Conference Call. Today's conference is being recorded. (Operator Instructions) Speakers for today's call include Al Carey, Executive Chairman; Eddie Ingle, Chief Executive Officer; A.J. Eaker, Chief Financial Officer. During this call, management will be referencing a webcast presentation that can be found in the Investor Relations section of unifi.com. Please familiarize yourself with Page two of that slide deck for cautionary statements and non-GAAP measures. I will now turn the call over to Al Carey.

早安，感謝各位參加Unifi 2026財年第一季財報電話會議。今天的會議正在錄影。（操作員說明）今天電話會議的發言人包括：執行主席艾爾·凱裡；首席執行官埃迪·英格爾；首席財務官A·J·伊克。在本次電話會議中，管理層將提及一份網路直播演示文稿，該簡報可在unifi.com網站的投資者關係版塊找到。請仔細閱讀該簡報的第二頁，其中包含警示性聲明和非GAAP財務指標。現在我將把通話轉給艾爾·凱裡。

Thank you. Good morning, everybody, and thank you for joining us today. Listen, I'll get started with a few comments. And to start out, I'd say our UNIFI business had a challenging quarter. However, I'd like to spend a few minutes to explain what unusual obstacles occurred in quarter one.

謝謝。各位早安，感謝大家今天收看我們的節目。聽著，我先說幾點看法。首先，我想說，我們的 UNIFI 業務經歷了一個充滿挑戰的季度。不過，我想花幾分鐘時間解釋一下第一季出現了哪些不尋常的障礙。

I think it would be helpful for those of you that follow our company to understand that this quarter had two primary challenges. One is beyond our control and one is within our control, but it's temporary.

我認為，對於關注我們公司的各位來說，了解本季面臨的兩大挑戰會很有幫助。一種情況超出我們的控制範圍，另一種情況在我們控制範圍內，但都是暫時的。

So let's start out with the first item, which is what is beyond our control. Most of you have probably read about this in our industry, the majority of our customers placed orders for goods that will get them through the holiday season, but they ordered them just before the tariffs went into effect in April. Then since April, orders have been extremely light and only for goods that are absolutely necessary, and this seems to be consistent across our industry, not just a UNIFI issue.

那麼，讓我們從第一點開始，也就是我們無法控制的因素。你們大多數人可能都聽說過我們行業內的這種情況，我們的大多數客戶都訂購了能夠幫助他們度過假期的商品，但他們是在 4 月份關稅生效之前訂購的。自四月以來，訂單量一直非常少，而且僅限於絕對必要的商品，這種情況似乎在整個行業中都很普遍，而不僅僅是 UNIFI 的問題。

This has had a significant impact on our sales revenues, particularly in Asia and also in Central America, and it's going to affect sales probably for another 8 weeks. So it will take us through our quarter two. This is as best as we can determine. But most of our customers, retailers and brands have communicated to us that they expect to return to some level of normal ordering in January. And if not, we have a plan to deal with that.

這對我們的銷售收入產生了重大影響，尤其是在亞洲和中美洲，而這種影響可能會持續 8 週。所以這將持續到我們第二季結束。這是我們目前所能確定的最佳結果。但我們的大多數客戶、零售商和品牌都向我們表示，他們預計1月訂單量將恢復到某種程度的正常水平。如果不行，我們也有應對方案。

One positive development that we are keeping an eye on is that the sales growth of apparel remains solid at a plus 5% versus a year ago and inventory is declining pretty significantly. So ordering should follow. So that's topic one.

我們關注的一個積極進展是，服裝銷售成長依然穩健，比去年同期成長了 5%，庫存也在大幅下降。因此，排序也應該隨之進行。第一個話題就到這裡。

Topic two, what is within our control. I think I mentioned this on the last call. We closed our Madison facility in June. We moved out of that volume. We took it from Madison to Yadkinville, our bigger facility, which added 40% to their capacity.

第二個主題，哪些事情在我們的掌控之中。我想我在上次通話中提到過這件事。我們於六月關閉了位於麥迪遜的工廠。我們已經搬離那個捲了。我們將貨物從麥迪遜運送到了我們更大的工廠——亞德金維爾，這使他們的產能提高了 40%。

The transition required us to hire many people, train them, moving equipment and incenting employees to stay working in Madison until we shut down so that we didn't miss out on business and kept our service up with our customers.

轉型需要我們僱用很多人，對他們進行培訓，搬遷設備，並激勵員工留在麥迪遜工作，直到我們關閉為止，這樣我們就不會錯過業務，並能繼續為客戶提供服務。

We've had increased costs because of these transitions, but I will tell you that we've taken actions. You'll hear more about them today to put our costs back on track. And while you don't see it in our Q1 results, we are now seeing it in our October operating results, which is the first month of the quarter, the new quarter. And you can expect these transition costs are now fully complete for our company.

由於這些轉型，我們的成本有所增加，但我可以告訴你們，我們已經採取了行動。今天您將聽到更多關於如何使我們的成本回到正軌方面的信息。雖然您在我們第一季的業績中看不到這一點，但我們現在在 10 月份的營運業績中看到了這一點，這是新季度的第一個月。您可以放心，我們公司的這些過渡成本現在已經全部完成了。

The third item I wanted to mention is that we really have resized our company's cost model. We now have resized the operating cost to fit this new level of revenue, this new low level of revenue so that we can be profitable even at the lower levels. So we've taken some new cost reductions, headcount reductions and price actions that are now complete as of last week. These actions will allow us to deliver improved cash flow and EBITDA and the performance will step up as we move from quarter two through quarter four.

我想提的第三點是，我們已經對公司的成本模型進行了調整。我們現在已經調整了營運成本，以適應這種新的收入水平，這種新的低收入水平，這樣即使在較低的收入水平下，我們也能獲利。因此，我們採取了一些新的成本削減、裁員和價格調整措施，這些措施已在上週完成。這些措施將使我們能夠改善現金流和 EBITDA，並且隨著我們從第二季到第四季的推進，業績將逐步提升。

Then when the revenues do improve and they will improve, we will see much, much better leverage on our fixed cost as a total company. Now A.J. will take you through how our net debt is being reduced and our cash flow improves with these changes. And I'd like to mention that last, but not least, we have a plan on improving revenue growth with our efforts at beyond apparel products, which we've been talking about for quite some time, topics such as military segment, carpet, resin sales and packaging. All these products are relatively new to our business with better margins than the base.

然後，當收入有所改善（而且一定會改善）時，我們將看到公司整體固定成本的槓桿作用大大提高。現在，A.J. 將帶您了解這些變化如何降低我們的淨債務並改善我們的現金流。最後，我想提一下，我們有一個計劃，透過拓展服裝以外的產品（我們已經討論過一段時間了），來提高收入成長，例如軍事領域、地毯、樹脂銷售和包裝等話題。這些產品對我們來說都是相對較新的產品，利潤率比基礎產品更高。

There have been a lot of work going on meeting qualifications for these projects. That's the one thing we probably didn't realize is how long it will take to qualify, but there's lots of work being done and orders are now coming in. Our efforts on the REPREVE innovation and textile Takeback are gaining a high level of interest from customers. They will see progress in the second half of calendar 2026.

為了滿足這些項目的資格要求，已經進行了大量工作。我們可能沒有意識到獲得資格需要多長時間，但目前正在進行大量工作，訂單也已經陸續到來。我們在 REPREVE 創新和紡織品回收方面的努力正在引起客戶的高度關注。他們將在 2026 年下半年看到進展。

So in summary, despite the obstacles we faced in quarter one, I'd say our team was agile in taking action that will make us a more profitable company and deal with these tariff uncertainties. While our comeback has taken longer than I would have liked, we have used this adversity to take additional actions fairly quickly and to be more sure of our ability to generate profits and cash flow even as the market has periodic downturns in the future.

總而言之，儘管我們在第一季面臨諸多障礙，但我認為我們的團隊能夠靈活應對，採取行動，使我們成為一家更盈利的公司，並應對這些關稅方面的不確定性。雖然我們的復甦比我預想的要慢，但我們利用這一逆境迅速採取了額外的行動，並更加確信我們有能力在未來市場週期性低迷的情況下創造利潤和現金流。

So now let me turn it over to Eddie Ingle, our President and CEO, who will take you through the actions that went on during this quarter.

現在，讓我把麥克風交給我們的總裁兼執行長艾迪·英格爾，他將為大家介紹本季開展的各項活動。

Thanks, Al. I'm going to start with an overview of the first quarter, so please turn to Slide number four. As Al noted, our results for the first quarter came in below our expectations as we continue to be impacted by softer ordering patterns that are directly related to the recent tariff and trade uncertainties. Many of our global customers have continued to methodically slow down their ordering patterns until they are better able to formulate a strategy to handle this current tariff landscape, which remains highly fluid.

謝謝你，阿爾。我將首先概述第一季的情況，請翻到第四張投影片。正如艾爾所指出的，由於近期關稅和貿易不確定性導致訂單疲軟，我們的第一季業績低於預期。我們的許多全球客戶一直有條不紊地放慢訂購速度，直到他們能夠更好地制定策略來應對當前瞬息萬變的關稅環境。

While we're disappointed that the customers are being cautious, the holiday season should bring apparel inventories down to relatively low levels, and thus, we believe we should build revenue momentum at the beginning of calendar 2026. Now along those lines, I think it's important to offer a few updates on the current trade environment in the key markets that we currently operate in.

雖然我們對顧客的謹慎態度感到失望，但假期季節應該能將服裝庫存降至相對較低的水平，因此，我們相信在 2026 年初，我們的收入動能將會增強。現在，基於此，我認為有必要就我們目前運營的主要市場的最新貿易環境提供一些更新資訊。

In the Americas, while the short term remains challenging, the mid- and long-term outlook seems to be improving. The reality is many brand and partners of ours are starting the process of moving some of their production programs to Central America in calendar 2026. While more clarity on the global tariff situation will be needed, we are actively working with these retailers to highlight the fact that if they use our U.S. yarn during their production in Central America, they can receive much of the 10% reciprocal tariff back as all of our Central American supply chain is U.S.-based.

在美洲，雖然短期內仍面臨挑戰，但中長期前景似乎正在改善。事實上，我們的許多品牌和合作夥伴都已開始在 2026 年將部分生產項目轉移到中美洲。雖然還需要對全球關稅情況有更清晰的了解，但我們正在積極與這些零售商合作，強調如果他們在中美洲生產時使用我們的美國紗線，他們可以獲得大部分 10% 的互惠關稅返還，因為我們所有的中美洲供應鏈都位於美國。

In Asia, brands are also reassessing where they need to move the final assembly step of their supply chain. While there continues to be some uncertainty in terms of which country will end up being the most favorable, our model remains asset-light. And as we've noted many times in the past, we continue to see immense opportunity in Asia once trade pressures begin to subside, given that the majority of the world's polyester is still produced from China-based assets.

在亞洲，各大品牌也在重新評估其供應鏈中最終組裝環節需要轉移到哪裡。儘管目前仍存在一些不確定性，不知道哪個國家最終會成為最有利的選擇，但我們的模式仍然是輕資產的。正如我們過去多次指出的那樣，鑑於世界上大部分聚酯纖維仍然產自中國，一旦貿易壓力開始緩解，我們仍然看到亞洲蘊藏著巨大的機會。

In Brazil, we continue to see relative demand stability and feel highly confident in the long-term growth potential of the textured polyester yarn market. However, we are still seeing some dumping pressure from Asia-based companies whose Asia-based demand has dried up. The textured polyester industry has filed an antidumping case with the Brazilian government, and they are going through the evaluation process right now. If successful, it would help alleviate some of the short-term headwinds we are seeing in the region.

在巴西，我們繼續看到相對穩定的需求，並對聚酯花紡紗市場的長期成長潛力充滿信心。然而，我們仍然看到一些亞洲公司面臨傾銷壓力，這些公司在亞洲的需求已經枯竭。聚酯織物產業已向巴西政府提起反傾銷訴訟，目前巴西政府正在進行評估。如果成功，這將有助於緩解該地區目前面臨的一些短期不利因素。

However, that process will take until the end of our fiscal year to get a final resolution. So stepping back a little bit and looking at the big picture, the tariff and trade situation has hurt all of our business segments in the near term, but they may, in fact, offer the Americas segment even greater support in the long term. Given the short-term uncertainty, it was important to further align our cost structure and improve our ability to drive greater profits and cash flow in fiscal 2026.

然而，這個過程需要等到本財年結束才能得出最終結果。因此，從宏觀角度來看，關稅和貿易狀況在短期內損害了我們所有的業務部門，但實際上，從長遠來看，它們可能會為美洲業務部門提供更大的支持。鑑於短期內的不確定性，進一步調整成本結構，提高我們在 2026 財年實現更高利潤和現金流的能力至關重要。

The first step was the (inaudible) of a cost restructuring program that was executed right after the Q1 quarter close. A.J. will provide more details on the financial impact of this program, but these cost restructuring efforts reduced our headcount and brought down hours in some of our facilities as we wait for demand to recover.

第一步是（聽不清楚）成本重組計劃，該計劃在第一季結束後立即執行。A.J. 將提供有關該計劃財務影響的更多細節，但這些成本重組措施減少了我們的員工人數，並減少了我們一些設施的工作時間，因為我們還在等待需求恢復。

Implementing these actions are not something that we take lightly, but we do believe that it was a necessary step for us to help deal with the financial headwinds we are currently facing and achieve improved financial results. We have done this while keeping the manufacturing footprints and capacities of the Americas business segments intact. As the fiscal year progresses and revenues pick up, we will continue to be very selective about where we add back costs.

採取這些措施並非我們輕率之舉，但我們相信，這是我們應對當前面臨的財務逆境並取得更好財務表現的必要步驟。我們在維持美洲業務部門生產規模和產能不變的情況下實現了這一目標。隨著財政年度的推進和收入的增加，我們將繼續非常謹慎地選擇在哪些方面增加成本。

And the second step we took during the September quarter was to communicate to customers inflation and tariff-related price increases. This increase in pricing will help drive a partial uplift to our financial results in Q2 and will be fully visible in our third fiscal quarter financial results. Turning now to our specific performance. During the first quarter of fiscal 2025, we reported $135.7 million in consolidated net sales, which was down 7.9%.

我們在九月採取的第二步是向客戶傳達通貨膨脹和關稅相關的價格上漲訊息。此次漲價將有助於部分提升我們第二季的財務業績，並將在第三財季的財務業績中充分體現。現在來談談我們的具體表現。2025 財年第一季度，我們公佈的合併淨銷售額為 1.357 億美元，下降了 7.9%。

In the Americas segment, we experienced a year-over-year decline, primarily due to reduced sales volumes stemming from trade uncertainty and some productivity shortfalls caused by our continued efforts to consolidate our U.S. yarn manufacturing operations. These transition costs are now complete. In our Brazil segment, we are continuing to see stable demand for our products, but as I noted earlier, our results during the period were impacted due to import pricing pressures from some dumping in the region and slightly lower sales volumes. With that said, we see -- we still see strong fundamentals in Brazil's textured polyester market, which we believe will help drive further improved financial performance in the second half of the fiscal 2026.

在美洲地區，我們經歷了同比下滑，主要原因是貿易不確定性導致銷量下降，以及我們持續努力整合美國紗線製造業務所造成的一些生產力不足。這些過渡成本現已全部支付完畢。在巴西市場，我們繼續看到對我們產品的需求保持穩定，但正如我之前提到的，由於該地區一些傾銷行為帶來的進口價格壓力以及銷量略有下降，我們在此期間的業績受到了影響。儘管如此，我們仍然看到巴西紋理聚酯市場的基本面強勁，我們相信這將有助於推動2026財年下半年財務表現的進一步改善。

In our Asia segment, sales continued to remain weak as trade negotiations drag on. As we've noted on our previous earnings call, our fixed cost profile in the region remains low and our asset-light model can be applied in many other countries. And thus, we will continue to adapt to the short term, and we'll be ready as global trade conditions shift and/or normalize.

在亞洲市場，由於貿易談判持續拖延，銷售仍疲軟。正如我們在先前的財報電話會議上所指出的，我們在該地區的固定成本仍然很低，我們的輕資產模式可以應用於許多其他國家。因此，我們將繼續適應短期形勢，並在全球貿易狀況變化和/或正常化時做好準備。

Turning now to Slide 5 for an update on REPREVE. During the first quarter, REPREVE Fiber represented 29% of sales, down 1% point from the previous year due to trade policy impacting ordering patterns. Despite this impact, we are seeing some green shoots for our REPREVE polyester resin, which performed well during the period. And we're cautiously optimistic that this momentum in resin will continue throughout the remainder of fiscal 2026. These REPREVE resin sales are part of the Beyond Apparel business growth in the U.S.

現在請看第 5 張投影片，了解 REPREVE 的最新進展。第一季度，REPREVE Fiber 的銷售額佔總銷售額的 29%，比去年同期下降 1 個百分點，因為貿易政策影響了訂購模式。儘管受到這種影響，但我們的 REPREVE 聚酯樹脂出現了一些復甦跡象，在此期間表現良好。我們謹慎樂觀地認為，樹脂市場的這種成長動能將在 2026 財年剩餘時間內持續下去。這些 REPREVE 樹脂的銷售額是 Beyond Apparel 在美國業務成長的一部分。

Moving now to Slide 6 to highlight some of our recent innovation efforts. We are building off the momentum from recent global product launches. During the last quarter, we had announced the global product launch of our new offering under the A.M.Y. platform for sustainable odor control, A.M.Y. Peppermint and our updated offerings of ThermaLoop insulation and REPREVE Takeback. Both of these circular products are now offered with 100% textile fabric waste inputs.

現在進入第 6 張投影片，重點介紹我們最近的一些創新成果。我們正乘著近期全球產品發表帶來的動能繼續前進。上個季度，我們宣佈在全球範圍內推出 A.M.Y. 平台下的新型可持續除臭產品 A.M.Y. 薄荷味，以及我們更新的 ThermaLoop 保溫材料和 REPREVE Takeback 產品。這兩種循環利用產品現在均採用 100% 紡織廢料製成。

On Slide 7, you can see the first co-branded placement of our ThermaLoop insulation products with outdoor apparel leaders, Marmot and Lafuma. Both brands have launched jackets incorporating on-garment co-branding hangtags and callouts on e-commerce. Meanwhile, REPREVE Our Ocean was featured in a co-branded Instagram social media created in collaboration with Rain Rebel.

在第 7 張幻燈片中，您可以看到我們的 ThermaLoop 保暖產品首次與戶外服裝領導者 Marmot 和 Lafuma 進行聯合品牌推廣。這兩個品牌都推出了帶有聯名吊牌和電商宣傳標誌的夾克衫。同時，REPREVE Our Ocean 與 Rain Rebel 合作，在聯名品牌的 Instagram 社群媒體上亮相。

The content effectively engaged audiences across both Europe and the U.S., serving as a compelling piece of brand storytelling using our REPREVE Our Ocean filament yarn in their rain ponchos made from 22 post-consumer recycled plastic bottles that are ocean cycle certified, which means they are removed from the ocean-bound environments in developing countries, lacking the formal infrastructure for waste management and recycling.

該內容有效地吸引了歐洲和美國的觀眾，並以引人入勝的品牌故事形式，利用我們的 REPREVE Our Ocean 長絲紗線製作雨披，該雨披由 22 個消費後回收的塑料瓶製成，這些塑料瓶均通過了海洋循環認證，這意味著它們是從發展中國家的海洋環境中清除的，這些國家缺乏正規的廢物管理和回收基礎設施。

Further, these customer validations were complemented by the announcement of recent award recognition as leaders in sustainable textile solutions. Our ThermaLoop insulation received an Honorable Mention from Fast Company's Innovation by Design Awards in the Sustainability and Circular Design category, standing alongside renowned companies like Google, Haworth and (inaudible). The REPREVE brand platform was awarded as a finalist for the Digiday Greater Goods Awards, which honors brands addressing critical social and environmental challenges.

此外，這些客戶的認可也得到了該公司近期榮獲永續紡織解決方案領導者獎項的肯定。我們的 ThermaLoop 保溫材料在 Fast Company 的「創新設計獎」的「永續性和循環設計」類別中榮獲榮譽提名，與 Google、Haworth 等知名公司並肩齊名。（聽不清楚）REPREVE 品牌平台榮獲 Digiday Greater Goods Awards 決賽入圍獎，該獎項旨在表彰致力於解決重大社會和環境挑戰的品牌。

And before I call -- return the call over to A.J., I want to quickly mention that we are continuing to see positive momentum in our Beyond Apparel initiatives in carpet, military and packaging applications. So far, the government shutdown hasn't hampered sales much in the military market, but we hope to see that situation resolved reasonably quickly to keep our momentum here. We continue to believe that the sales from these initiatives will become a meaningful contributor to our financial and revenue growth in the second half of fiscal 2026.

在我打電話之前——把電話轉給 A.J.——我想快速提一下，我們在地毯、軍事和包裝應用領域的「超越服裝」計劃繼續保持著積極的勢頭。到目前為止，政府停擺還沒有對軍用市場的銷售造成太大影響，但我們希望這種情況能盡快解決，以保持我們在這裡的發展勢頭。我們仍然相信，這些措施帶來的銷售額將在 2026 財年下半年對我們的財務和收入成長做出重要貢獻。

With that, I would now like to pass the call over to A.J. to discuss our financial results for the quarter.

接下來，我想把電話交給 A.J.，讓他來討論一下我們本季的財務表現。

Thank you, Eddie. As Eddie noted, we are disappointed in our financial results this quarter and thus have continued to take steps to better align and optimize costs across our business, which now includes the recent implementation of another cost restructuring initiative. This recent initiative is expected to result in significant savings on an annual basis as we reduce our headcount, match machine run rates with sales volumes and strategically reduce operating costs across our business. This new cost reduction plan includes approximately $5 million in SG&A savings on an annualized basis compared to fiscal 2025 and approximately $4 million of those savings should be reflected in this fiscal 2026. These are predominantly cash savings.

謝謝你，艾迪。正如艾迪所指出的，我們對本季的財務表現感到失望，因此我們一直在採取措施，更好地調整和優化我們業務的成本，其中包括最近實施的另一項成本重組計劃。這項新措施預計每年節省大量資金，因為我們將減少員工人數，使機器運行速度與銷售量相匹配，並從策略上降低我們業務的營運成本。與 2025 財年相比，這項新的成本削減計劃每年可節省約 500 萬美元的銷售、一般及行政費用，其中約 400 萬美元的節省應在 2026 財年體現出來。這些主要是現金儲蓄。

Next, the new reduction in manufacturing costs are designed to drive a $5 million per quarter savings for the remainder of fiscal 2026. These measures were necessary to realign costs with the lower revenue levels that were not expected immediately following the closure of our Madison facility. Moving on to the financial results on Slide 8. You will see our consolidated financial highlights for the quarter. Consolidated net sales for the quarter were $135.7 million, down 8% year-over-year, primarily driven by trade-related uncertainty and short-term demand volatility across each business segment. Gross profit was lower at $3.4 million and gross margin was 2.5%.

接下來，新的製造成本削減計畫旨在2026財年剩餘時間內，每季節省500萬美元。這些措施是為了調整成本，以適應麥迪遜工廠關閉後預期不會立即出現的較低收入水準。接下來是第 8 張投影片上的財務結果。您將看到我們本季的綜合財務摘要。本季綜合淨銷售額為 1.357 億美元，年減 8%，主要原因是貿易相關的不確定性和各業務部門的短期需求波動。毛利較低，為 340 萬美元，毛利率為 2.5%。

On Slide 9, in the Americas, net sales were down 1.3% compared to the prior year fiscal 2025 due to price and sales mix. Gross profit in the region decreased by $300,000, primarily as demand and production volatility mostly offset the savings from consolidation efforts during calendar 2025. Slide 10 displays our Brazil segment, which saw net sales and gross profit decrease versus the prior year. As Eddie noted, this was primarily due to import pricing pressures and lower sales volumes. That said, demand and growth opportunities continue to remain strong in Brazil.

投影片 9 顯示，由於價格和銷售組合的原因，美洲地區的淨銷售額比上一財年（2025 財年）下降了 1.3%。該地區的毛利減少了 30 萬美元，主要是因為需求和生產的波動在很大程度上抵消了 2025 年日曆年整合努力帶來的節省。第 10 張幻燈片展示了我們的巴西業務板塊，該板塊的淨銷售額和毛利與前一年相比有所下降。正如艾迪指出的那樣，這主要是由於進口價格壓力和銷量下降造成的。儘管如此，巴西的需求和成長機會依然強勁。

Finally, on Slide 11, our Asia segment net sales and gross profit declined by 19% and 16%, respectively, primarily due to lower sales volumes, a less favorable sales mix and pricing dynamics in the region. Despite these headwinds, our gross margin in the region did improve by 40 basis points, highlighting the benefit of our ability to adjust and flex our asset-light model. Slide 12 outlines our capital structure. From a CapEx perspective, we prioritize critical investments and are forecasting under $10 million in fiscal 2026.

最後，在第 11 張投影片中，我們的亞洲業務部門淨銷售額和毛利分別下降了 19% 和 16%，主要原因是該地區的銷售量下降、銷售組合不太有利以及價格動態變化。儘管面臨這些不利因素，我們在該地區的毛利率還是提高了 40 個基點，這凸顯了我們調整和靈活運用輕資產模式的優勢。第 12 張投影片概述了我們的資本結構。從資本支出角度來看，我們優先考慮關鍵投資，預計 2026 財年的支出將低於 1,000 萬美元。

We've also continued to do a nice job managing our working capital over the last few years and expect to continue that work throughout fiscal 2026 from a leaner manufacturing base in the U.S. With all of our calendar 2025 cost actions, we have positioned the business to better generate operating cash flows under a strained revenue environment. For example, in monitoring our weekly cash spend in the Americas business, during October, we've seen a significant decrease versus August when we had more volatile customer ordering patterns and higher activity across all operating functions. Therefore, significant progress has been made.

過去幾年，我們在營運資金管理方面也做得很好，並希望在2026財年繼續保持這一優勢，同時在美國建立更精簡的生產基地。透過我們2025年的所有成本控制措施，我們已使業務在收入緊張的環境下更好地產生經營現金流。例如，在監測我們在美洲業務的每週現金支出時，我們發現 10 月份的支出與 8 月份相比大幅下降，當時客戶訂單模式波動較大，所有營運職能的活動也更為活躍。因此，已經取得了顯著進展。

With that, I'll pass the call back to Eddie.

這樣，我就把電話轉回給艾迪了。

Thank you, A.J. Now let's turn to Slide 13 to discuss our forecast for the second quarter of fiscal 2026. For the second quarter, we are expecting to begin to see the full benefits of our proactive efforts to reduce costs, increase machine efficiencies and facility utilization to improve profitability throughout the remainder of fiscal 2026. We also expect to see adjusted EBITDA improve sequentially from the first quarter of fiscal 2026, primarily driven by cost savings in the Americas segment.

謝謝你，A.J.。現在讓我們翻到第 13 張投影片，討論我們對 2026 財年第二季的預測。預計在第二季度，我們將開始看到我們積極採取措施降低成本、提高機器效率和設施利用率以提高盈利能力的全部成效，這些措施將在 2026 財年剩餘時間內持續發揮作用。我們也預計，從 2026 財年第一季開始，調整後的 EBITDA 將較上季改善，這主要得益於美洲地區的成本節約。

Due to the holiday period, the net sales are expected to drop slightly in the Americas and Brazil and net sales in Asia are expected to increase ahead of the Lunar New Year, which this year is in mid-February 2026. And while it's difficult to -- for us to predict the exact timing of this, we also anticipate that the global trade situation will gain greater clarity by the end of calendar 2025. This as well as significantly reduced inventory levels in the channel after the holiday season should help us see incremental improvement of the top line throughout calendar 2026.

由於假期臨近，美洲和巴西的淨銷售額預計將略有下降，而亞洲的淨銷售額預計將在農曆新年（今年是 2026 年 2 月中旬）之前增長。雖然我們很難預測具體時間，但我們預計到 2025 年底，全球貿易狀況將更加明朗。此外，假日過後渠道庫存水準大幅下降，應該有助於我們在 2026 年全年看到營收逐步改善。

Lastly, we do expect to see continued commercialization of our value-added products such as REPREVE Takeback in ThermaLoop in Asia and in the beyond apparel markets such as packaging, military, and carpets in the U.S. To wrap up on Slide 14 with our strategic priorities. While much of our cost actions were completed during the first 10 months of calendar 2025, we recognize that we still have some work ahead of us to position our business to be where we want it to be.

最後，我們預計我們的增值產品（例如 REPREVE Takeback）將在亞洲的 ThermaLoop 以及美國包裝、軍事和地毯等服裝以外的市場繼續商業化。最後，在第 14 張投影片中總結我們的策略重點。雖然我們的大部分成本控制措施已在 2025 年的前 10 個月完成，但我們認識到，為了讓我們的業務達到我們想要的目標，我們還有一些工作要做。

As we've highlighted today, we are continuing to make the necessary changes needed to strengthen our business, which will help us capitalize on the investments we have made in new innovations and circular textile solutions. As we have previously noted, achieving our goals will continue to require patience and persistence. However, the cost actions we took will be seen in Q2 and beyond.

正如我們今天所強調的，我們將繼續進行必要的變革，以加強我們的業務，這將有助於我們充分利用在新技術和循環紡織解決方案方面的投資。正如我們之前所指出的，實現我們的目標仍然需要耐心和毅力。然而，我們採取的成本控制措施的效果將在第二季及以後顯現。

And while October has not yet been rolled up, we have seen better revenues come through in the Americas. Further, now that we have rightsized our Americas footprint, we will see the cost benefits of this reduction begin to flow through. The tariff uncertainty should subside in the coming months, and the brands will have a clear supply chain strategy that we will adapt to. The focus going forward will be on growing revenues and margins through the commercialization of our value-added technologies and building our business in new markets. When successful, this is expected to create long-term value for our shareholders.

雖然十月份的數據尚未統計完畢，但我們已經看到美洲地區的收入有所成長。此外，既然我們已經合理調整了在美洲的業務規模，我們將開始看到這種縮減帶來的成本效益。關稅方面的不確定性將在未來幾個月內消退，各品牌也將制定明確的供應鏈策略，我們將予以適應。未來我們將專注於透過增值技術的商業化和在新市場拓展業務來提高收入和利潤率。如果成功，預計將為我們的股東創造長期價值。

With that, we would now like to open the line for questions. Operator?

接下來，我們將開放提問環節。操作員？

(Operator Instructions) And your first question comes from Anthony Lebiedzinski from Sidoti & Company.

（操作說明）您的第一個問題來自 Sidoti & Company 的 Anthony Lebiedzinski。

So first, I just wanted to see if you could guys take a step back and just maybe just provide a little bit more comment and details about the volatility that you saw in demand and production, particularly in the Americas. And it sounds like things have gotten better there in October, which is encouraging, but if you could just kind of go over the volatility in demand and how that impacted the first quarter, that would be helpful.

首先，我想看看你們能否冷靜下來，就你們觀察到的需求和生產波動，特別是美洲地區的波動，提供更多評論和細節。聽起來10月份情況有所好轉，這令人鼓舞，但如果您能詳細分析需求波動及其對第一季的影響，那就太好了。

Yes, Anthony, thanks for joining us today, and thanks for the question. Yes, the -- we did have a lot of volatility in demand. We mentioned a little bit of this in our previous earnings call. And what happened during our Q1 is we built inventory in the first five weeks, six weeks of the quarter, expecting revenues to come through. And when they didn't, we rapidly turned around and reduced our production levels.

是的，安東尼，感謝你今天加入我們，也感謝你的提問。是的，我們的需求確實波動很大。我們在之前的財報電話會議上已經稍微提到過這一點。在第一季度，我們在第一季的前五到六週建立了庫存，期望收入能夠隨之而來。當他們沒有這樣做時，我們迅速調整策略，降低了產量。

And that, in turn, resulted in some cost-cutting actions, but the demand falloff has certainly been something that we reacted to very, very quickly. We do expect -- as I said, October was good, and we expect a slowdown as we move into the -- in the Americas into the Christmas holiday period and then expect an uptick in the Q3 as we come out of that holiday.

而這反過來又導致了一些成本削減措施，但需求下降確實是我們反應非常迅速的事情。正如我所說，我們預計十月份的業績不錯，隨著美洲進入聖誕假期，我們預計業績會放緩，然後隨著假期的結束，第三季業績會回升。

And then just curious if you guys could provide more details as to what are you hearing from your customers about the operating environment and the upcoming holiday season. There seem to be a lot of mixed signals with the overall economy. So just wondering if you guys could talk about that.

另外，我很好奇你們能否提供更多關於你們從客戶那裡了解到的關於營運環境和即將到來的假期季節的信息。整體經濟情勢似乎有許多相互矛盾的訊號。所以，我想問你們能不能談談這件事。

Yes. What we're seeing is that everybody is very cautious with their inventories, and they're starting to do what we started two months ago, which is manage their inventory levels down by reducing their production levels and really being very reactionary to any demand. Everybody is telling us that this is really in preparation for managing their year-end inventories, which we understand. But they are also saying at the same time, like I said earlier, Q3 should be better.

是的。我們看到的是，大家對庫存都非常謹慎，他們開始做我們兩個月前開始做的事情，那就是透過降低產量來控制庫存水平，並對任何需求做出非常迅速的反應。大家都說這其實是為了管理年末庫存做準備，我們對此表示理解。但他們同時也表示，就像我之前說的那樣，第三季應該會好轉。

And it should be better for us in the Americas because Central America is expected to pick up and it's expected to pick up because of natural seasonality, but also because the brands are moving some of the programs back here. While there is still that 10% tariff for Central America, USMCA -- not USMCA, but CAFTA-DR goods, there is an opportunity for some of the brands to claim back some of that 10% reciprocal tariff if there is a U.S. supply chain. So we're excited about the fact that the brands are learning about how to capture some of that money back to make it a more level playing field with some of the Asia tariffs.

這對美洲來說應該會更好，因為預計中美洲的市場將會回暖，這不僅是因為自然季節性因素，也是因為一些品牌正在將一些項目轉移回這裡。雖然中美洲商品仍需繳納 10% 的關稅，但根據美墨加協定（USMCA）——不是美墨加協定，而是中美洲自由貿易協定（CAFTA）——的商品，如果存在美國供應鏈，一些品牌有機會要求退還部分 10% 的互惠關稅。因此，我們很高興看到這些品牌正在學習如何收回部分資金，從而在與亞洲關稅的競爭中創造一個更公平的環境。

Anthony, this is Al. I'll just add something that was in the trade press. It's in April, I mean, if I were a buyer for a chain, I do the same thing. When the tariffs were announced, they went right to the point of April -- in April and everyone ordered product that would come in, in time for Christmas. And the report was that the ports in Los Angeles had the highest level of deliveries in any time in the 17 years that they've tracked.

安東尼，我是艾爾。我再補充一點，這是業界媒體上報道的內容。現在是四月份，我的意思是，如果我是連鎖店的採購員，我也會做同樣的事情。關稅宣佈時，直接定在了四月份——也就是四月份，當時每個人都訂購了能在聖誕節前到貨的產品。報告顯示，洛杉磯港口的貨物交付量達到了17年來的最高水準。

And then in July, August, September, they've gone very low and that the inventories for the Christmas holidays were in place and ready to go a month earlier than ever before.

然後到了七月、八月、九月，庫存量就非常低了，聖誕節的庫存比以往任何時候都提前一個月到位並準備就緒。

And they literally are sitting on a -- they were sitting on a bit of inventory and now blowing through it as the holiday comes in. So it's kind of remarkable that everybody is doing the same thing, but it makes sense. The tariffs, they got -- they almost bought into a price increase, right? Before a price increase. So the other thing I'd mention to you was in the last question you asked, the one thing that's really important is our plants -- I'll say these numbers to you, they don't mean anything, but you can see the change.

他們之前確實囤積了一些庫存，現在隨著假期的到來，這些庫存正在迅速消耗掉。所以，大家都在做同樣的事情，這有點令人驚訝，但仔細想想又合情合理。他們收到了關稅——他們幾乎是接受了價格上漲，對吧？漲價之前。所以，我還要提一下你上次問的問題，真正重要的是我們的工廠——我告訴你這些數字，它們本身並沒有什麼意義，但你可以看到變化。

If we were running in the summer at about 85 pounds per man hour. And since then, we've jumped to 107, and we have the ability to get well above that. So the training and the hiring and the production and the goals we've set for our people are starting to take place. That's one of the most important things that's happened in the last three months. And we think these cases per man hour go up a good bit above what I just mentioned as they -- as some of these people get in the saddle for a while.

如果我們在夏季以每人每小時約 85 磅的速度生產。從那以後，我們的數字躍升至 107，而且我們有能力遠遠超過這個數字。因此，我們為員工設定的培訓、招募、生產和目標都開始逐步實現。這是過去三個月發生的最重要的事情之一。我們認為，隨著這些人工作一段時間，每人每小時處理的案件數量會比我剛才提到的要多得多。

And then, Eddie, I think you said earlier that you're seeing some green shoots with REPREVE. Can you expand on that? What are you expecting going forward?

然後，艾迪，我想你之前說過，你看到 REPREVE 出現了一些好轉的跡象。能詳細解釋一下嗎？你對未來有什麼期望？

Yes. Much of our REPREVE is in Asia. And I mentioned that there's two brands, Marmot, that were and Lafuma who have adopted ThermaLoop in their products, but we're also seeing some action on the REPREVE Takeback, which is also the 100% circular solution. So as we move through the year, we're expecting the Asia business to grow simply because REPREVE plus technologies and plus the circular solutions are going to grow.

是的。我們的大部分代表都在亞洲。我提到過，Marmot 和 Lafuma 這兩個品牌已經在他們的產品中採用了 ThermaLoop 技術，但我們也看到 REPREVE Takeback 也取得了一些進展，這也是 100% 的循環解決方案。因此，隨著時間的推移，我們預計亞洲業務將會成長，原因很簡單，REPREVE 及其技術和循環解決方案將會成長。

And we can see this in some of the ordering patterns that we have visibility to in the December, January period. In the U.S., there is still a renewed interest in keeping a lot of the performance apparel with REPREVE. And that is what that business is generally run through the Central America supply chain. So as we get into Q3, we should see the growth in Q3 of REPREVE also in the Americas business.

我們可以在我們能夠觀察到的 12 月至 1 月期間的一些訂購模式中看到這一點。在美國，人們對保留許多高性能服飾品牌 REPREVE 的興趣依然濃厚。而這正是該業務通常透過中美洲供應鏈運作的方式。因此，隨著我們進入第三季度，我們應該會看到 REPREVE 在美洲業務的第三季度也成長。

And then in terms of the price increases that you referenced, can you give us more details as far as like what's the extent of the price increases? And also, are these price increases in certain markets? How should we think about that?

關於您提到的價格上漲問題，您能否提供更多細節，例如價格上漲的幅度是多少？另外，這些價格上漲是否只發生在某些市場？我們該如何看待這個問題？

Yes. I'll add a little bit of color there, Anthony. Certainly, we work closely with the customers to make sure we're delivering the right value. So we're not in a position to disclose the specific price increases or the overall amount, but know that these are responsive to costs and tariffs. And so we're doing our best to work closely with the customers to make sure everything is fair as we get through the supply chain and that we're delivering the same value we have.

是的。安東尼，我來為它增添一些色彩。當然，我們會與客戶緊密合作，確保我們提供的價值符合預期。因此，我們目前無法透露具體的漲價幅度或總漲幅，但要知道，這些漲價幅度會隨著成本和關稅的變化而變化。因此，我們正在盡最大努力與客戶密切合作，以確保供應鏈中的一切都公平公正，並確保我們提供的價值與以往一樣。

That sounds good, A.J. And then I just want to follow up as far as the cost savings that you talked about, are these on a gross basis or a net basis in terms of the numbers that you provided?

聽起來不錯，A.J.。然後我想跟進一下你提到的成本節約問題，你提供的數字是總額還是淨額？

So for SG&A, we are expecting a strong decline year-over-year in the annual consolidated SG&A amount. So in fiscal '25, you saw approximately $49 million of SG&A, and we expect that to be under $45 million for fiscal 2026. So that would be the overall impact to the SG&A line. From a COGS basis, at these revenue levels, we are expecting that $5 million per quarter to come through as compared to the quarter that we just completed. So improvement throughout the year beyond this Q1.

因此，對於銷售、一般及行政費用，我們預期年度合併銷售、一般及行政費用金額將較去年同期大幅下降。因此，在 2025 財年，銷售、一般及行政費用約為 4,900 萬美元，我們預計 2026 財年該費用將低於 4,500 萬美元。因此，這將對銷售、管理及行政費用總額產生整體影響。從銷貨成本的角度來看，在目前的營收水準下，我們預計每季將比剛結束的季度增加 500 萬美元。因此，今年全年都將在第一季之後有所改善。

And then just also thinking about the beyond apparel initiatives. You've referenced the military and carpet, not just on this call, but on previous calls as well. Just wondering if you guys could comment as far as how much revenue are you currently deriving from these? And what's the opportunity going forward?

此外，也要考慮服裝以外的措施。你不僅在這通電話中提到了軍隊和地毯，在之前的通話中也提到過。想問各位，目前你們從這些產品中獲得了多少收入？那麼，未來的機會是什麼？

Yes. We still believe that in the calendar 2026, we should see a market improvements. And I'm going to put a range of around $20 million with the Q3 fiscal or Q1 calendar being on the lower range. And as we move through the 12 months in fiscal 2026 -- calendar 2026 to see a significant uptick to the run rate of around $20 million by the end of the calendar year. We are already seeing quite a nice improvement in our resin business, which is our flake and chip business, polyester, recycled polyester. And that is expected to continue as we move through 2026 calendar.

是的。我們仍然相信，到 2026 年，市場將會有所改善。我估計金額範圍在 2000 萬美元左右，第三財季或第一財季的金額範圍應該在較低水平。隨著我們進入 2026 財年（即 2026 年日曆年），預計到該日曆年年底，運行率將顯著上升至約 2000 萬美元。我們的樹脂業務，包括片狀和碎屑狀樹脂、聚酯樹脂和再生聚酯樹脂，已經取得了相當不錯的進展。預計這種情況將持續到 2026 年。

And then just overall, as far as the -- I guess the last question I would have here is just aside from military and carpet, are there any other key beyond apparel initiatives that we should think about? I think in the past, you've talked about automotive. Just wondering if you could provide anything else in regards to that.

最後，總的來說——我想問的最後一個問題是，除了軍事和地毯之外，除了服裝之外，還有其他我們應該考慮的關鍵舉措嗎？我想你以前也談過汽車業。想問您是否還能提供關於這方面的其他資訊。

Yes. We do, from time to time, talk about automotive specifically, and that has been quite actually good for us over the last few months. We are a little bit -- we haven't called it out because we're just a little bit nervous about the automotive industry with a lot of the changes going on. And so we still see that as being robust and helping us with our Beyond Apparel initiative. The trick there is to move it over to the value-added products that we have, and we're working hard on that. But it is something that's a very important part of our business.

是的。我們偶爾會專門談論汽車行業，而這在過去的幾個月裡確實對我們很有好處。我們有點——我們沒有公開表達出來，因為我們對汽車行業正在發生的許多變化感到有些緊張。因此，我們仍然認為它很強大，並有助於我們開展「超越服裝」計劃。關鍵在於將其轉移到我們擁有的增值產品上，我們正​​在為此努力。但這是我們業務中非常重要的一部分。

And your next question comes from Chris Reynolds from Neuberger Berman.

下一個問題來自 Neuberger Berman 公司的 Chris Reynolds。

I have two questions. The first relates to Brazil and sort of Latin America in general. That's an area where you have some strength. But if I recall, you have a balance sheet there that's fairly significant with cash that sort of stays in region. Can you provide an update on what those general numbers look like and then the trends because I think one of your competitors went bankrupt, and that's helped you.

我有兩個問題。第一個例子與巴西以及整個拉丁美洲有關。這是你的強項。但我記得，你們的資產負債表相當龐大，現金儲備也相當充足。能否提供一下這些總體數據以及趨勢的最新情況？因為我認為你們的某個競爭對手破產了，這對你們有幫助。

The second question is any clarification on the changes to the de minimis import rules? I saw some numbers out of UPS, which said that they had big earnings gains because they didn't have to have a bunch of cost to handle that change in using software and AI and other things to help manage that transition. I'm just wondering if there's any real benefit that would come to the apparel industry in general from this change on customs.

第二個問題是關於最低限度進口規則變更的任何說明？我看到UPS的一些數據顯示，由於他們無需投入大量成本來應對這種變化，而是利用軟體、人工智慧和其他技術來幫助管理這種轉型，因此他們的利潤大幅增長。我只是想知道，海關政策的這種變化是否會為整個服裝業帶來任何實際好處。

Thanks, Chris. Two good questions there. A.J. here. I'll start with the first. Certainly, we've been proud of what the Brazil operation has been able to achieve over the last several years. Certainly, last year was stronger with the pricing environment there and a little bit more pressure in this current quarter. Fortunately, their operation has run quite well, especially from a working capital and margin perspective. Despite these pressures, they have been able to generate cash, both the quarter that we just completed and the quarter that we're in now. So that balance sheet remains healthy and their cash levels remain in excess right now of their absolute needs for the next few quarters.

謝謝你，克里斯。這兩個問題問得很好。我是A.J.。我先從第一個說起。當然，我們對巴西業務在過去幾年中所取得的成就感到自豪。當然，去年的定價環境更好，而本季則面臨更大的壓力。幸運的是，他們的營運情況相當不錯，尤其是在營運資金和利潤率方面。儘管面臨這些壓力，他們仍然能夠創造現金流，無論是剛結束的季度還是現在的季度。因此，他們的資產負債表依然健康，目前的現金水準仍超過未來幾季的絕對需求。

And I'll let Eddie comment on de minimis for you.

至於「微不足道」這一點，就讓艾迪來為你解答吧。

Yes. We're excited about what happened with the de minimis. It was August -- at the end of August, basically an executive order was signed that you can't bring in goods duty-free and regulation-free basically. We know that it's impacting a lot of the brands in a positive way because the very, very cheap imports that were coming in under the de minimis are no longer coming in. We do expect to see this translate into better revenues for the bigger domestic brands.

是的。我們對微量因素的進展感到興奮。那是八月——八月底，基本上簽署了一項行政命令，規定你不能免稅且不受監管地進口商品。我們知道這對許多品牌產生了積極的影響，因為以前那些根據最低限度進口的非常非常便宜的進口商品現在已經不再進口了。我們預計這將轉化為國內大型品牌更高的收入。

And then some of the brands got caught because they were not got caught, but they were flat-footed because they were bringing in goods through the de minimis. So they are having to pay the extra cost, the extra duties and the extra transportation as the other brands who are not using that ruling. So I think we're going to see the benefit in the region over the next few quarters, but it will be -- it's right now hard to determine exactly how it's impacting us because we don't have the normal data that we get because of the government shutdown. So we're sort of running a little bit blind now on the exact import situation. So -- but more to come on that in the coming quarters. Thanks for the question.

然後，有些品牌被抓住了，不是因為它們被抓住了，而是因為它們措手不及，因為它們通過最低限度的進口方式走私貨物。因此，他們不得不像其他未使用該規定的品牌一樣，支付額外的成本、額外的關稅和額外的運輸費用。所以我認為在接下來的幾個季度裡，我們將看到該地區從中受益，但是——目前很難確定它究竟對我們產生了怎樣的影響，因為由於政府停擺，我們沒有通常的數據。所以現在我們對具體的進口情況有點一頭霧水。所以——但未來幾季還會有更多相關消息。謝謝你的提問。

All right. There are no further questions at this time. And ladies and gentlemen, thank you all for joining, and that concludes today's conference call. All participants may now disconnect. Thank you, everyone.

好的。目前沒有其他問題了。女士們、先生們，感謝各位的參與，今天的電話會議到此結束。所有參與者現在可以斷開連接。謝謝大家。