Dixie's Q3 Sales Down 5.4%, Net Loss of $3.9 Million

Dalton, GA, October 29, 2024-The Dixie Group reported Q3 2024 net sales of $64.9 million, a 5.4% decline compared to net sales of $68.6 million in Q3 2023.

For the first nine months of 2024, the company had sales of $200.6 million, a 4.3% decline compared to sales of $209.7 million in the same period last year.

For Q3 2024, The Dixie Group reported a net loss of $3.9 million, compared to a loss of $2.4 million in the same period last year.

For the first nine months of 2024, the company reported a loss of $5.8 million, compared to a loss of $5.9 million in the same period last year.

Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, “Net sales in the third quarter started off slow in the month of July but improved throughout the remainder of the quarter. Soft market conditions, as a result of high interest rates, low existing home sales and low consumer confidence, have negatively impacted our overall sales volume. Net sales from soft surfaces during the quarter were 3% below prior year while the industry, we believe, was down approximately 6.5%. Operating margins in the third quarter were unfavorably impacted by the lower manufacturing volume in the plants, and significant non-recurring charges for capacity charges from utilities at our manufacturing facilities in California and higher costs related to our self-insured medical benefits and workers’ compensation.

“We are pleased by the results of the successful operation of our extrusion equipment that began in the first quarter of this year. Along with providing raw materials at a lower cost, the importance of securing an internal supply of fiber became more apparent as one of our key suppliers of white nylon announced they would be shutting down their operations later this year.”