Dixie Reports Loss, Improved Residential Sales

Chattanooga, TN, May 7, 2012 -- The Dixie Group reported a first quarter net loss of $181,000, or $0.01 per diluted share, compared with net income of $623,000, or $0.05 per diluted share, for the year-earlier period.

The firm reported net sales of $62.8 million compared to $65.9 million a year ago, although the quarter a year ago had an extra week.

"The first quarter typically is the slowest and most difficult quarter for our business," said CEO Daniel Frierson.

"However, Dixie had a year-over-year sales improvement of 2.6%; adjusted for a 13-week versus 14-week fiscal period last year and in line with industry growth for the period."

Dixie reported growth in the residential business of 5.7%. Dixie said the growth was significant because it represented a shift to higher-end retail sales for its Fabrica, Masland Residential and Dixie Home brands and a decline in its mass merchant sales.

All three of the upper-end retail brands had double digit growth relative to the same period a year ago, Dixie said, adjusting for the number of weeks in the period. Dixie said its Masland and Fabrica brands, and its wool and Stainmaster products had particularly strong results.

However, its commercial business declined 8.2% year over year.

Related Topics:The Dixie Group, Masland Carpets & Rugs