Dixie Group (DXYN) Reports Losses for Q2 & First Half of 2018
Dalton, GA, August 2, 2018--The Dixie Group reported a net sales loss of 0.7% in Q2 2018, year over year, and a 0.3% loss for the first half.
Earnings losses for the quarter was ($1,815,000), compared to income of $1,103,000 in the same quarter last year. For the first half, The Dixie Group posted a loss of ($4,722,000), compared to income of $498,000 in the first half last year.
Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, “Our residential sales were up 4.0% for the quarter with the industry, we estimate, being up slightly as compared to the prior year. Our residential sales were strongest through our independent retail channels. In 2018, we have reintroduced the Masland Energy collection. Masland Energy is a modern take on the traditional main street commercial business. Our Energy products are highly stylized and feature type 6, 6 nylon delivering the performance required by the most demanding segments of the commercial market. The Fabrica wood line was launched with initial selective distribution in the southeast United States. The Fabrica collection features both flooring and companion wood wall coverings. The line will include French oak, maple and birch with a style and quality consistent with the high-end quality of Fabrica’s brand.
“Our commercial business in the second quarter was down 10.1% while the industry we believe was down slightly. We did benefit from the reorganization of our commercial business this past fall with lower selling and administrative expenses. Our commercial team, led by David Hobbs, has a number of new offerings for 2018 with particular emphasis on new modular carpet tile offerings. Getting in sync with the current urban bicycle movement, Masland Contract’s Shift Your Attitude collection celebrates the freedom found in life on two wheels. Introduced at the NeoCon show in Chicago, each new style reflects the energy of the urban lifestyle and is manufactured for high-level performance in commercial environments.”
Specific to the earnings losses, Dixie has a $1.51 million charge related to settlement of a class action lawsuit as well as a $450,000 charge related to an accident at one of the firm's yarn facilities.