Dixie Group Net Sales Up 27% in Q3, Income Up 744%
Dalton, GA, November 12, 2021-The Dixie Group has reported net sales of $89.3 million for Q3 2021, up 27% compared to Q3 2020’s $70.0 million.
Net income for Q3 2021 was $6.4 million, a 744% increase compared to $860,000 in Q3 2021.
For the first nine months of 2021, net sales were $252 million, a 144% increase compared to the first nine months of 2020’s $175 million.
Net income for the first nine months of 2021 was $7.8 million, compared to a loss of $8.9 million in the first nine months of 2020.
On September 13, the company sold its commercial business. Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "With the sale of our commercial business, the third quarter was the beginning of our company as a residential floorcovering only focus. During the quarter, we continued to gain market share and began significant changes, which we believe will enhance our future prospects. Net sales of our residential floorcovering products were up 26%, comparing favorably to the industry which we believe was up approximately high-single digits. For the first nine months of the year, our total net sales of residential products was up 49% over the same period in the prior year. This significant year over year increase in the net sales of our residential floor covering products was the result of the impact of the Covid-19 pandemic in 2020 and strong growth in new and existing home sales and home remodeling in 2021. The departure of Stainmaster from the residential market represents a major change, but one which offers opportunities for growth and repositioning. We are implementing strategies to help our customers transition to our new brands, EnVision66, EnVisionSD Pet Solutions. Our Trucor brand has continued to grow even more rapidly than the LVF market. With additional cutting-edge products and focus on domestic sourcing, we feel we can continue growing faster than the marketplace. As part of our commitment to the upper end of the decorative market, we are bringing two new collections to the market. Our Masland 1866 and Fabrica Décor product offerings bring a large number of fresh and distinctive looks, which are designed to complement our offering for the design community.
“Our residential business in the third quarter continued to be very strong. Net sales were 27% ahead of same period in the prior year, including sales of soft surface products that were up 22% and hard surfaces up 73%. Order entry remained well above prior year levels throughout the quarter.”