Motley Fool Profiles Mohawk, Dixie Group

Washington, DC, June 13, 2014 -- Investor website The Motley Fool has profiled the business strategies of The Dixie Group and Mohawk Industries, particularly as they relate to carpet as carpet continues to lose marketshare.

The website details how the companies take completely different approaches to the market, with Dixie focusing on a more exclusive clientele with higher priced products while Mohawk focuses on a broader clientele in both hard and soft surface products as it continues to cut costs.

It describes Dixie as product-driven while Mohawk is manufacturing-driven.

The story notes that Dixie's carpet sales have grown 69% since 2009 while the industry only expanded by 11% over the same period.

In the past three years, Mohawk has grown its overall revenue and operating income by 11% and 20%, respectively, as it has completed several major acquisitions.

While the average price of carpet in the residential market is approximately $8 per square yard, Dixie's prices between $10 and $50 per square yard. Nearly 40% of its Fabrica sales involve a designer, the story says.

Rather than focusing on a narrow part of the carpet market, Mohawk has diversified its hard product offerings through the acquisition of Pergo and Marazzi, among others as soft floorcovering sales make up slightly more than a third of Mohawk's revenue.

Also, "By using the fiber from its internal manufacturing operations, Mohawk can reduce inventory costs and spread its fixed overhead over a large revenue base. In contrast, the high fixed cost of making fiber makes it uneconomical for smaller companies like Dixie to follow suit," the story notes.

"Mohawk has relied on its scale to achieve cost benefits and efficiency. On the other hand, Dixie has turned its lack of scale to its advantage by focusing on what it's best at," the story concludes.



Other Archived Articles

Tight Lending Standards Still Hurting Home Builders   Full Article
Washington, DC, Oct. 9, 2014 -- Tight mortgage lending standards continue to affect sales for single-family builders, according to a survey released by the National Association of Home Builders.

Wholesale Inventories Increase in August   Full Article
Washington, DC, Oct. 9, 2014 -- U.S. wholesale inventories rose 0.7% in August, according to the Commerce Department.

Initial Jobless Claims Hold Steady Last Week   Full Article
Washington, DC, Oct. 9, 2014 -- Initial jobless claims held steady at 287,000 last week, according to the Labor Department.

Quick-Step Starts Promoting Q-Wood Flooring on the Internet   Full Article
Dallas, TX, Oct. 9, 2014 -- Quick-Step developed a new website specifically for its Q-Wood category of flooring.

Mortgage Application Volume Rises Last Week   Full Article
Washington, DC, Oct. 8, 2014 -- Mortgage application volume increased 3.8% last week from the previous week, according to the Mortgage Bankers Association.

Got You Floored on Fast 50 List in Piedmont Region   Full Article
Greensboro, NC, Oct. 8, 2014 -- -Got You Floored, Inc. was named by the Triad Business Journal to the Fast 50 for the Piedmont Triad Region in North Carolina.

Georgia Gov. Deal Visits Mohawk in Calhoun   Full Article
Calhoun, GA, Oct. 7, 2014 -- Earlier this week, Georgia Gov. Nathan Deal toured the Mohawk Flooring Center in Calhoun and spoke to employees about the importance of the flooring industry in the state of Georgia.

Interface Issues Third Quarter Earnings Warning   Full Article
New York, NY, Oct. 8, 2014 -- Shares of Interface fell 16.5% in after-hours trading Tuesday after the company announced lower-than-expected preliminary third-quarter results.

National Retail Federation Expects Holiday Sales Boost   Full Article
Washington, DC, Oct. 7, 2014 -- Retail spending during the holiday season is expected to be the highest in three years, according to a forecast by the National Retail Federation.

Job Openings Highest Since 2001   Full Article
Washington, DC, Oct. 7, 2014 -- Job openings increased to 4.84 million in August, up from 4.67 million in July, according to the latest Job Openings and Labor Turnover Survey.

Builders Offering Incentives as Sales Soften   Full Article
New York, NY, Oct. 7, 2014 -- Home builders nationally have begun sweetening offers in light of slowing sales, according to a Bloomberg News story.

Domotex To Feature Installation Technology for First Time   Full Article
Hannover, Germany, Oct. 7, 2014 -- Domotex 2015 set for Jan. 17-20 will feature 1,300 exhibitors from more than 60 countries.

Fincibec Group Seeking Tile Award Entries   Full Article
Sassuolo, Italy, Oct. 6, 2014 -- The Quinquennial Tile Award, now in its fourth edition, seeking entries using the Fincibec Group's three brands, Century, Monocibec and Naxos, between Jan. 1, 2011 and Dec. 31, 2015.

Armstrong Raising Some Vinyl Prices   Full Article
Lancaster, PA, Oct. 6, 2014 -- Armstrong said it will raise prices in the U.S. and Canada on commercial vinyl composition tile and BioBased Tile by 4%, commercial wallbase by 4%, and select residential tile products.

Stifel Sees Stronger Hard Surface Sales, Weaker Carpet Sales   Full Article
New York, NY, Oct. 6, 2014 -- Analyst Stifel Nicolaus believes that third quarter flooring sales will show stronger sales of hard surface flooring and weaker sales of carpet.

NeoCon East Offers Education for Designers   Full Article
Baltimore, MD, Oct. 6, 2014 -- NeoCon East has announced its educational program for design professionals seeking continuing education.

Duncan Appointed President of Mannington's Residential Business   Full Article
Salem, NJ, Oct. 3, 2014 -- Mannington Mills announced today that Ed Duncan will replace Kim Holm, who is retiring, as president of Mannington’s Residential Business.

Services Sector Growth Slows in September   Full Article
Washington, DC, Oct. 3, 2014 -- The services sector of the economy grew at a slower pace in September, according to the Institute for Supply Management.

CRI Annual Meeting Set Nov. 12   Full Article
Dalton, GA, Oct. 3, 2014 -- The Carpet and Rug Institute's 2014 Annual Membership Meeting will be held Nov. 12.

Unemployment at Six-Year Low in September   Full Article
Washington, DC, Oct. 3, 2014 -- The unemployment rate fell to 5.9% in September as the economy created 248,000 jobs, according to the Labor Department.