Dixie Group Sales Declined 11.6% in Q2, Net Loss of $1.62M Recorded
Dalton, GA, August 4, 2023-For Q2 2023, The Dixie Group had net sales of $74.0 million, an 11.6% decline compared to sales of $83.7 million in the same quarter of 2022.
For the first half of 2023, net sales from continuing operations were $141.09 million, a 12.5% decrease from sales in the first six months of 2022 at $161.27 million.
The net loss for Q2 2023 was $1.62 million, compared to a net loss of $4.02 million in the prior year period.
The net loss for the first half was $3.17 million compared to a net loss of $7.36 million in the first six months of the prior year.
The company reports that order entry for the month of July was slightly ahead of the comparable period the prior year.
Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "Our second quarter results continued to show the positive impact of the plant consolidation and cost reductions we began in 2022. Our gross margins were strong as our manufacturing plants continue to operate at levels of high efficiency despite the lower year over year sales volume. A significant factor in the year over year sales decline was a loss of volume in the mass merchant channel, with our primary customer's strategy shifting toward lower price points. Excluding our mass merchant sales, net sales were down 9.1% over the prior year quarter. This decline in sales was primarily the continued result of high inflation and increased interest rates impacting consumer confidence and demand in the second quarter of 2023. For the first half of 2023, we have experienced higher selling expenses driven by samples and marketing investment for new product offerings, particularly in our new decorative line and the growing hard surface flooring market. The majority of the benefit of this current year expense will be reflected in sales in future periods."
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