GREENSBORO, N.C. — January 31, 2024 — UNIFI Inc. (together with its consolidated subsidiaries, UNIFI), makers of REPREVE and an innovator in recycled and synthetic yarns, today announced that it has begun the implementation of a new Profitability Improvement Plan, focused on further reducing the company’s costs, streamlining operations, and investing in innovation. The company also announced new executive officer appointments to critical roles.
Highlights:
- Profitability Improvement Plan includes:
- Cost reset and headcount reductions that are expected to lower expenses by $10 million to $15 million annually
- Sales transformation initiatives focused on improving efficiencies and processes expected to bolster operating margins by $6 million annually
- Savings are expected to be invested into margin accretive opportunities and product innovation for REPREVE and will be used to strengthen the Company’s financial profile beyond actions taken to date
- A.J. Eaker promoted to executive vice president and CFO
- Meredith S. Boyd promoted to executive vice president and chief product officer
- Brian D. Moore promoted to executive vice president and president of Unifi Manufacturing Inc.
- Gregory K. Sigmon promoted to executive vice president, general counsel and corporate secretary, with expanded leadership responsibilities over Sustainability and Government Affairs functions.
“In recognition of the current operating environment, we recently implemented an extensive Profitability Improvement Plan to optimize our resources,” said Eddie Ingle, CEO of Unifi Inc. “While this Plan came with difficult decisions, these measures will significantly improve profitability, helping to ensure UNIFI has a robust foundation to foster growth and innovation, core tenets of the company’s strategy. Additionally, the transformation of our sales processes will serve as a direct catalyst to improve gross margins and operational efficiencies. Savings from these initiatives will be reinvested in the business, first in areas that should help us accelerate growth as demand levels reach the expected rebound across our industry in calendar 2024, and then to bolster the our balance sheet and already strong financial profile.”
Ingle continued: “We have streamlined our organization and realigned our Leadership Team to support a more efficient and responsive go-to-market structure. Collectively these actions will better prepare the business to deliver stronger results as our industry pivots to growth in calendar 2024. Over the last decade we have focused on leadership development within our organization, and we are therefore very proud to announce promotions of talented leaders like A.J., Meredith, Brian, and Greg. Each has extensive experience and proven track records at UNIFI that have been invaluable to the organization and our customers. The Board and I are thrilled to complete the leadership appointments and promotions, as they will make strong impacts on their respective teams and help drive the future growth of our company.”
Profitability Improvement Plan
UNIFI began the implementation of an extensive Profitability Improvement Plan in December 2023. The first part of this strategy realigned resources, reduced headcount and further reset costs, which lowers the company’s variable operating expenses in both production and administrative activities in the United States. These actions have been completed and are expected to reduce expenses by $2.5 million per quarter at the start of fiscal 2025. The company recorded a severance charge of $2.4 million during the December 31, 2023 quarter as a result.
The second part of the Profitability Improvement Plan is focused on gross margin expansion initiatives through a transformation of the company’s sales process. This transformation includes actions designed to streamline processes, improve inventory management, and realign resources to maximize efficiencies in the current and future operating environment.
The total reduction in costs and anticipated profitability improvement as a result of the execution of this Plan is expected to reach $20 million on an annual run-rate basis at the start of fiscal 2025. The company plans to reinvest these savings into areas of the business that will create additional revenue and margin accretive opportunities beyond the traditional apparel market it serves today.
Leadership Appointments
A.J. Eaker has been appointed executive vice president and CFO. Eaker served as Interim CFO of UNIFI since August 2023, as treasurer since December 2022, and as vice president of UNIFI’s primary domestic operating subsidiary since June 2017. Eaker has held various positions with increasing leadership and functional responsibilities since joining the company in March 2014, including vice president of Finance, corporate finance manager, and assistant controller, following more than five years in public accounting.
Meredith S. Boyd has been appointed executive vice president and chief product officer. Boyd previously served as senior vice president of Sustainability, Technology & Innovation for the last three years and joined UNIFI in 2007. She has been instrumental in driving international growth and product differentiation, particularly in sustainable practices. Her expertise spans multiple roles, including Global Business Development and Brand Sales, and she has been a prominent figure at industry conferences and in publications.
Brian D. Moore has been appointed executive vice president and president of Unifi Manufacturing Inc., the company’s primary operating subsidiary in the United States. Moore previously served as senior vice president of Direct Sales & Operations, leading various aspects of the United States sales team for the past year, after serving as vice president of Global Brand Sales from 2020 to 2023. Moore first joined UNIFI in 1993, eventually leading UNIFI’s Asian market and gaining extensive experience in various sectors of the textile industry through transforming sales and operations for global fashion and apparel companies before returning to UNIFI in 2020. His leadership and experience underscores his capability to steer the manufacturing division effectively.
Posted: February 2, 2024
Source: Unifi, Inc.
