TDG Q4 Sales Down 1.4% YOY, Net Loss of $3 Million

Dalton, GA, March 26, 2026- In Q4 2025, The Dixie Group’s (TDG) net sales were $63,487,000 or 1.4% below the net sales in Q4 2024 at $64,338,000. 

The net loss for Q4 2025 was $3,001,000, compared to a net loss of $7,198,000 in Q4 2024.

For the fiscal year 2025, net sales for the company were $257,429,000 or 2.9% below the net sales of $265,026,000 in the fiscal year 2024. 

The net loss on the year was $7,615,000, compared to a net loss of $13,000,000 in 2024.

Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, “In 2025, we continued to navigate through a challenging economic environment while staying focused on strategic internal initiatives. Our focus on higher-end flooring markets, operational efficiency and disciplined cost management enabled us to improve year over year gross profit margins and financial results despite ongoing softness in residential demand. We were forced to manage the unexpected implementation of ‘Liberation Day’ tariffs and other tariff measures throughout much of 2025. We implemented price increases in order to mitigate the financial impact of the tariffs, however, the difference in timing of the tariffs and the price increases resulted in a negative financial impact on the year of approximately $1.4 million. Our total payment of IEPPA tariffs through March of 2026 was approximately $3.3 million.

“As we closed out 2025, we implemented key drivers as part of a profit improvement plan for 2026 totaling $13 million in year over year improvements. These improvements range from price increases to reductions in selling expenses and administrative costs.

“Throughout 2025 our sales and marketing strategy focused on our strengths in design and color through our Step into Color campaign. Through this initiative we have showcased colors in our standard palette that stands out from our competitors. We also launched an updated custom color program giving our retail and designer partners the ability to custom color any of our white dyeable nylon products. We are building on this momentum in 2026 through several key growth initiatives with our larger retail accounts and buying groups.

“Our soft surface sales for both the fourth quarter and the year were down less than 1% from the year ago periods. We believe the industry was down approximately 4% for the quarter and approximately 5% on the year, both in comparison to the same prior year periods. Consequently, we continued to gain market share in the carpet market.”