Dixie Group's (DXYN) Q3 Net Sales Fell 1.1%
Dalton, GA, November 8, 2018-In Q3 2018, Dixie Group’s net sales fell 1.1%, compared to Q3 2017.
For Q3 2018, the company had a loss from continuing operations of $2,922,000, compared to a loss of $547,000 in the prior year period.
Residential product sales were up 5.6% for the quarter. By Floor Focus estimates, the residential carpet market-which comprises the bulk of Dixie’s sales-grew less than 1% in Q3. “Our residential soft surface floor covering continued to grow market share, while the residential replacement segment, we estimate, was down slightly as compared to the prior year,” Dan Frierson, Dixie Group chairman, reported. This quarter saw the Fabrica brand’s new hardwood collection shipping to retailers.
Commercial product sales in Q3 were down 16.1%. The company believes the industry’s commercial sales were up low single digits, saying, “We have been slower in adapting to the transition in the marketplace from broadloom to modular carpet tile as well as the shift from piece dyed product to solution dyed yarn systems. To respond to these trends and improve our speed to market with newer more relevant products, we announced the unification of our two commercial brands, Atlas and Masland Contract, into one operating division of the company in the fourth quarter of 2017.”
The company also elaborated on its Profit Improvement Plan, which consists of the following actions,
* closing tufting plants in Chickamauga Georgia and Commerce California
* consolidating Masland Contract and Atlas commercial brands and associated sales forces
* reducing operations in Atmore, Alabama from seven- to five-day schedule
* cutting employment by 15% by early 2019.