Dixie Group's Net Sales for Q1 Represent 6.9% YOY Loss

Dalton, GA, May 4, 2016—For the first quarter of 2016, The Dixie Group had net sales of $89,234,000, or a loss of $0.30 earnings per share, compared to net sales of $95,855,000 in the first quarter of 2015, or a loss of $0.16 earnings per share.

This amounts to a 6.9% net sales drop year over year.

The company had a loss from continuing operations of $4,757,000 for the first quarter of 2016 as compared to a loss from continuing operations of $2,380,000 in the first quarter of 2015.

Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, “Though the first quarter of the year is historically our weakest quarter, this year our sales were substantially weaker as compared to the same period in 2015. Sales of residential products decreased 4.8% in the first quarter of 2016 versus the same period in 2015, similar to what we believe the industry was off for the year over year period. Though there have been modest improvements in housing activity, we have not seen a corresponding improvement in the soft floorcovering market we serve and continue to evaluate our expectations for future sales growth. Our commercial product sales decreased 8.5% in 2016 versus 2015 while the industry sales, we believe, were off only slightly. Our commercial backlog has improved significantly, up 24% from year end to the end of the first quarter. We have introduced new products with an emphasis on modular carpet tile in both Masland Contract and Atlas to increase our offerings in this important category.”

Related Topics:Masland Carpets & Rugs, The Dixie Group