Dixie Group Earns $3.3M on $105M in Sales--A 72% Sales Increase
Dalton, GA, August 5, 2021-The Dixie Group reported net sales of $104,833,000 for Q2 2021, a 72% increase compared to sales of $60,824,000 in Q2 2020.
For Q2 2021, income from continuing operations was $3,410,000, compared to a net loss of $6,979,000 in Q2 2020.
Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "During the second quarter of 2021 we were able to build on the momentum we experienced through the end of the first quarter. Overall, net sales increased 72.3% compared with the second quarter of 2020. Net sales of our residential floorcovering products were up 99.5%, or close to double the comparable residential sales from the second quarter of 2020, comparing favorably to the industry which we believe was up approximately 50-55%. For the first six months of the year, our total net sales of residential products was up 55.1% 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 the second quarter of 2020 and strong growth in new and existing home sales and home remodeling in 2021. Sales volume in the commercial markets has improved but continued to be at lower levels.
“Our second quarter was punctuated by three major events, two of which will have a significant impact on our future.
“First, a ransomware attack, which occurred in mid-April, impacted our operations and both internal and external communications. Certainly, our April results were negatively impacted but we were able to return to more normal operations later in the quarter with limited impact on our customers.
“Second, the sale of the Stainmaster brand to Lowes and the withdrawal of the brand from independent retailers as well as the price changes by Invista will have a long lasting impact on our business. We are executing a plan to enhance our brand and competitive offerings to the market.
“Lastly, we have entered into an agreement in principle for the sale of our commercial business. This sale would represent a major change of focus for our company. We are currently negotiating terms and conditions of the proposed sale. Upon successful completion of the sale, our entire focus would be solely on the residential floorcovering market where our well known and respected brands continue to gain market share.”
Related Topics:The Dixie Group