The impact of Unifi ‘s cost-cutting measures were evident in the company’s Q3 earnings .

The maker of the branded recycled performance fiber Repreve reported lower year-over-year net sales in the third fiscal quarter of 2026, though the company posted an increase in gross profit compared with the same period last year.

The North Carolina-based recycled textile manufacturer reported that Q3 net sales were $130 million, an 11.3 percent decrease from third quarter 2025 ($146.6 million), but a 7.1 percent increase from the second quarter of fiscal 2026. Unifi attributed that decrease to reduced customer orders stemming from tariff and geopolitical uncertainty.

Despite a decrease in year-over-year sales, gross profit for the quarter was $9.1 million with a gross margin of 7 percent—a significant improvement from a gross loss of $400,000 and a gross margin of 0.3 percent during the same period last year.

Gross profit for Unifi’s Americas segment grew by $10.6 million, primarily due to cost reduction efforts…