The Dixie Group Sales Down 4.5% in Q3 on Net Loss of $2.4 Million
Dalton, GA, November 13, 2023-The Dixie Group reported net sales of $68.6 million for Q3 2023, a 4.5% decline compared to net sales of $71.8 million in Q3 2022.
For Q3 2023, the company posted a net loss of $2.4 million, compared to a net loss of $8.8 million in the same period last year.
For the first nine months of 2023, net sales were $209.7 million, a 10% decline compared to $233 million in the same period last year.
The Dixie Group reported a net loss of $5.9 million for the first nine months of 2023, compared to a loss of $16.6 million in the same period last year.
Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, "Despite lower year over year sales comparisons, we continue to see improved gross margins as the result of our plant consolidation and cost reduction efforts that were substantially complete in the first quarter of this year. Our gross margins in the third quarter improved by over nine percentage points to 26.6% of net sales as compared to 17.5% of net sales in the third quarter of 2022.
“The reduction of net sales for the quarter, down 4.4% from the same prior year period, was the result of constraints in the housing market driven by limited supply, high interest rates and continued inflationary pressure. We believe the overall flooring industry experienced a significantly higher reduction in year over year sales volume, indicating we are continuing to gain market share in our core markets. The residential flooring market remains weak as a result of lower volume in home resales and the deferral of home improvement projects.”