Oct 30, 2026 earnings call — Asset sale and operational improvements
Closed sale and used proceeds to pay down a $55.5 million term loan, improving the balance sheet.
Revenue $0.1B (est $0.1B) · EPS $-0.09 (est $-0.15)
Key quotes
"This week, we finalized the sale of 2 nonstrategic real estate assets in Yadkinville. The proceeds were immediately used to pay down the outstanding term loan balance of $55.5 million."
"A few weeks ago, we launched Cofira, a dual-function yarn that can be tailored with synthetic, blended and functional fiber technologies for enhanced performance."
"In the Americas, net sales were down $8.2 million year-over-year as the region continues to face volume headwinds attributed to tepid customer ordering patterns amid inflation pressures and trade uncertainty."
Analyst Q&A 2
Retail inventory and demand
Q (Anthony Lebiedzinski · Sidoti): He asked whether retail inventory levels are low and if retailers will replenish after the holidays. He also asked about demand outside apparel (military, auto), details on four customers, portfolio changes, new product priorities, and timing for YarnProof.
A: Management said inventories at retail and across the supply chain are very low and they expect H2 improvement partly from initiatives like YarnProof and innovations in military and tactical products. They said auto sampling shows growth but meaningful auto volumes are likely in fiscal 2028, and that work with at least four military customers has led to broader strategic opportunities expected to show in Q3 and Q4. They said they have cut unprofitable programs, are focused on value-added products (ThermaLoop, Fortisyn, Resist2O Pro, Cofira, A.M.Y. Peppermint), and that YarnProof launched mid-October with expected impact by mid- to late summer and in fiscal Q4 and the following Q1.
"We expect that by mid- to late summer, all of the products in the region that are produced with polyester filament yarn will contain this tracer." — A.J. Eaker (CFO)
Why apparel demand is weak
Q (Chris Reynolds · Neuberger): He asked why the apparel business is in a deep, long downturn and whether a cyclical upturn could occur in the next 12 to 18 months.
A: Management said it is confusing and there may be a structural shift in some consumer patterns, not just a simple cyclical trough. They said they are not relying on a return to the post-COVID boom and are focusing on innovation (YarnProof, Resist2O Pro, REPREVE Takeback, ThermaLoop) to regain business; they also noted customers changed inventory practices, tariffs and raw-material price volatility have complicated ordering, and inventories may now be low enough that ordering resumes when raw-material pricing stabilizes.
"I think we're at the point where we realize there may be a structural shift in some of the consumer patterns." — Edmund Ingle (CEO)