Unifi, Inc. New (UFI) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, and thank you for attending Unify's first quarter fiscal 2026 earnings conference call. Today's conference is being recorded, and all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Speaker for today's call include Al Carey, Executive Chairman, Eddie Engel, Chief Executive Officer, A.J. Ecker, 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 side deck for cautionary statements and non-GAAP measures. I will now turn the call over to Al Carey. 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 unified business had a challenging quarter. However, I'd like to spend a few minutes to explain what unusual obstacles occurred in quarter one. I think it'd 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. 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 place 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 the Unify issue. This has had a significant impact on our sales revenues, particularly in Asia and also in Central ...