Dixie Group Q3 Earnings Up on Lower Sales Volume

Dalton, GA, Oct. 25, 2016—The Dixie Group has reported net sales of $100,297,000, 7.9% below third quarter of 2015 sales of $108,908,000, for the third quarter 2016. Income from continuing operations was $573,000, or $0.04 per fully diluted share, for the third quarter of 2016 as compared to income from continuing operations of $84,000, or $0.01 per fully diluted share, in the third quarter of 2015.

Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, “The third quarter started off very slowly but improved throughout the quarter. Carpet sales for the quarter were down 6% on a comparative year over year basis. In particular our commercial product sales were 13% below the prior year. We believe the commercial market was down slightly on a year over year basis. Residential product sales were 2% below the prior year period. Though our residential business was down as compared to the prior year’s quarter, we believe that we outperformed the residential market which we believe was down mid to high single digits. For the first four weeks of October floorcovering sales are off high single digits versus the same period a year ago. We have seen modest decline in residential replacement housing activity during the summer months. We believe that the entire floorcovering market has been impacted by a drop in consumer expectations and political uncertainty this year.