Unifi, Inc. (NYSE:UFI) Q2 2024 Earnings Call Transcript

So it’s — and like we said in the call, we’re cautiously optimistic about the brands retailers getting back to normal, but I think they are still a little cautious about what inventories they have and how they respond to the consumer demand. But we’re going to be ready, and we are ready, to react whatever way they do, whether they’re going to spike it or just be very cautious. We’ll be ready for the growth that we’re seeing.

Anthony Lebiedzinski: Sounds good. Okay. And just a quick follow-up on that. So, as you’re seeing these smaller and more frequent orders, are you — how are you dealing with pricing for those orders? Is it just making sure that you guys get the margin that you guys deserve to get?

Edmund Ingle: Yes. There’s — as part of this sales transformation, we are continuing to match our pricing to the value we’re giving. So, we are changing our — as the market has changed in their demand — because in the past, people would want to have more stable pricing for longer programs. Since that’s not the case, we are reacting, and our pricing is much more targeted based on the value that we’re bringing to that product. And as we move through the next two quarters, we’re going to see the benefit of that from a profitability point of view and a margin perspective.

Albert Carey: One of the things that…

Anthony Lebiedzinski: Sounds good. I’ll…

Albert Carey: This is Al.

Anthony Lebiedzinski: Sure, go ahead.

Albert Carey: And I just want to throw on one more comment. In this efficiency move, we’ve taken out close to 20% of the line items, and most of those are line items that were very low volume, low run times, low margin. And that effectively gets us a positive margin mix that’s contributing there, too. So, some of these items that have been around forever, and finally, A.J. and his team went after it.

Anthony Lebiedzinski: Well, thank you for that additional detail and thanks very much and best of luck going forward.

Albert Carey: Thank you, Anthony.

Edmund Ingle: Thank you, Anthony.

Operator: Thank you, ladies and gentlemen. As we have no further questions at this time, we will conclude today’s conference call. We thank you for participating and you may now disconnect.