Dixie Reports 3.5% Q1 Sales Decline, Earnings Loss of $1.6M

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Dixie Reports 3.5% Q1 Sales Decline, Earnings Loss of $1.6M

Dalton, GA, May 9, 2025- For Q1 2025, The Dixie Group had net sales of $63 million, a 3.5% decline compared to net sales of $65.3 million Q1 2024.

The net loss from continuing operations in Q1 2025 was $1.6 million, compared to a net loss of $2.5 million in Q1 2024.  

During the first quarter of 2025 the company closed on a new $75 million credit facility.

Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "The industry continues to experience weak market conditions driven by low existing home sales and lower consumer confidence. Our first quarter net sales were down 3.5% from the same period a year ago. Sales of our soft floorcovering products again outperformed our hard surface products and we continued to gain market share in the soft surface category. Just as in the previous quarter, premium products performed better than the market in all categories.

“Despite the lower sales volume, our gross margins in the first quarter were favorable to prior year at $16,902,000 or 26.8% of net sales compared to $15,809,000 or 24.2% of net sales in the prior year. We also had favorable year over year operating income in the first quarter at $11,000 compared to an operating loss of $857,000 in the prior year. The improvements are primarily the result of our continued focus on cost reductions and operating efficiencies throughout the Company.

“Low consumer confidence was further impacted by the uncertainty around the announcement of tariffs during the quarter. We had previously minimized the amount of our products being imported from China and we have worked with all of the suppliers of our imported products to reduce the impact of tariffs on the cost of our products. The situation is very volatile at this time, and it is difficult to predict what the impact of increased tariffs will be on imported products. At this time, several industry players have already announced price increases. Certainly, the impact will be greater on some hard surface categories.”