Dixie Group Swings to Third Quarter Profit
Chattanooga, TN, Nov. 9, 2012 -- The Dixie Group reported third quarter net income of $102,000, or $0.01 per share compared with net loss of $43,000, or $0.00 per share, for the year-earlier period.
Net sales decreased by $3,785,000 compared with the third quarter of 2011, primarily due to a one-time sales promotion in the prior period.
Year-to-date sales were $195,238,000.
“We continued our strong residential growth in the quarter with 6.5% increase in product sales, excluding a one-time promotional special in the prior year," said CEO Daniel Frierson in a press release.
"Each of our residential brands had nice increases through the retail and design channels. The only area of decline was in our mass merchant category, due primarily to the non-repeating one-time promotion in 2011. Our residential product sales, including mass merchants, declined 2.9% relative to a slight growth for the industry. Our commercial sales during the period were hurt by a slow start to the quarter with a sales decline of 10.6% relative to the industry growth in the low-single digits."
The company said that its new commercial and residential product introductions has given it confidence that sales will improve in the next year.
Dixie also said its margins improved, partly due to efficiency improvements in its tufting operations.
“The fourth quarter is coming in stronger than the weaker summer months as we have seen positive signs in the housing market beginning to take effect," Frierson said.
"We still believe that the upper-end residential market will continue to outperform the market in general."