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Breaking Flooring NewsFloor CoveringsBusiness InsightsCarpet and Rugs

The Dixie Group Reports First Quarter 2018 Results

Dixie-Group-logo
May 3, 2018

Dalton, Ga. -- The Dixie Group reported financial results for the quarter which ended March 31, 2018. For the first quarter of 2018, the company had net sales of $98,858,000 as compared to $97,541,000 in 2017, up 1.4% as compared to the same time period in 2017. The company had a loss from continuing operations of $2,884,000 for the first quarter of 2018 as compared to a loss of $575,000 in the first quarter of 2017.

“Our residential sales were up 7.3% for the quarter with the industry, we estimate, being flat as compared to the prior year,” said Daniel K. Frierson, chairman and CEO. “Our residential sales had solid growth with all three brands showing high single digit improvement during the quarter. Residential sales benefited from the successful launch of our Stainmaster PetProtect luxury vinyl flooring line by our Masland and Dixie Home brands.”

At TISE, the residential group continued the focus on developing and marketing differentiated designs and styles for the high-end residential market, launching more than 150 new products for 2018, including 67 carpet styles and 86 hard surface designs.

“We are especially excited about our new Masland Energy in-store display with 20 exciting main street commercial products,” Frierson said. “This high-styled main street category was developed by Masland in the mid 2000s and we are reinvigorating this line with new products, designs and an updated selling vehicle. We are in the process of launching our Fabrica wood product line in the southeast United States with a selective set of dealers. We look forward to expanding this specialty wood line in the future.”

Gross profit for first quarter of 2018 was 21.8% of net sales as compared to a gross profit of 25.8% in 2017. During the first quarter of 2018, sales and costs were negatively impacted by severe weather which affected several east coast facilities in January. In addition, the launch of numerous, new, difficult-to-manufacture residential products severely impacted the throughput of manufacturing operations in January and February, resulting in unabsorbed fixed costs, the company said.

For more information, visit thedixiegroup.com.

KEYWORDS: business management financial insights

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