Unifi, Inc. (NYSE:UFI) Q1 2023 Earnings Conference Call November 4, 2022 8:30 AM ET

Company Participants

A Eaker - Vice President of Finance and Investor Relations

Albert Carey - Executive Chairman

Edmund Ingle - Chief Executive Officer and Director

Craig Creaturo - Executive Vice President and Chief Financial Officer

Conference Call Participants

Daniel Moore - CJS Securities

Anthony Lebiedzinski - Sidoti & Co

Operator

Good morning. My name is Devin, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q1 2023 Unifi, Inc. Earnings Conference Call. [Operator Instructions]

A Eaker

Thank you, Devin, and good morning, everyone. On the call today is Al Carey, Executive Chairman; Eddie Ingle, Chief Executive Officer; and Craig Creaturo, Chief Financial Officer.

During this call, management will be referencing a webcast presentation that can be found in the Investor Relations section of our website at unifi.com. Please turn to Page 2 of that slide deck for our cautionary statements. Management advises you that certain statements included in today's call will be forward-looking statements within the meaning of the federal securities laws. Management cautions that these statements are based on current expectations, estimates and/or projections about the markets in which Unifi operates. These statements are not guarantees of future performance and involve certain risks that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, forecasted or implied by these statements. You are directed to the disclosures filed with the SEC on Unifi's Form 10-Q and 10-K regarding various factors that may impact these results. Also, please be advised that certain non-GAAP financial measures such as adjusted EBITDA, adjusted EPS, adjusted working capital and net debt may be discussed on this call.

I'll now turn it over to Al Carey.

Albert Carey

Thank you, AJ. Good morning, everybody. I apologize for my voice. I've lost it. Quarter 1 has been a tough quarter, and it's been due to one big contributing factor and that is the slowdown of retail orders for apparel, and that's affecting our volume pretty significantly. This began in the summer, and it continues today. Retailers reporting retail inventories on apparel being anywhere from 30% to 80% above a year ago, and therefore, many of them are going to be discounting heavily during Black Friday and the holiday season and hopefully, clear out some of this inventory. But it's uncertain exactly when normal ordering patterns will return.