Dixie Group's Q1 Sales Declined 13.5%
Dalton, GA, May 5, 2023-The Dixie Group reported net sales of $67.1 million for Q1 2023, a 13.5% decline compared to sales of $77.6 million in Q1 2022.
The net loss for Q1 2023 was $1.8 million, compared to a net loss of $3.4 million in Q1 2022.
Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "Our results from the first quarter reflected the positive impact of the restructuring efforts we initiated in 2022. Although net sales in the first quarter of 2023 were 14% below the same period in the prior year, we had strong gross margins driven by more efficient operations from our manufacturing plants during the quarter. A significant factor in the year over year sales decline was a loss of volume in the mass merchant channel, with Lowe's strategy shifting toward lower price points. Excluding our mass merchant sales, net sales were down 7% over prior year. This decline in year over year sales was primarily the result of high inflation and increased interest rates impacting consumer confidence and demand in the first quarter of 2023.”
Industry carpet sales in the U.S. for Q1 2023 were down approximately 13%.
Related Topics:The Dixie Group