The Dixie Group reported a second-quarter loss from continuing operations of $6.9 million as compared to a loss of $1.1 million n the second quarter of 2019. 

The company had net sales of $60,824,000 for the quarter, down 39%, as compared to $100,394,000 in 2019.

Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "As with most companies, the COVID-19 pandemic had a significant impact on our sales in the second quarter. Our low point in sales occurred in the second week of April and has continued to improve since that time. Once the extent of the COVID-19 pandemic became apparent, we implemented our continuity plan to maintain the health and safety of our associates, preserve cash, and minimize the impact on our customers. To minimize and prevent cases of COVID-19 exposure in our facilities, we have taken measures aimed at sanitation and safety, including large scale COVID-19 testing, mandatory temperature checks prior to starting work, requirements to wear masks when unable to maintain social distancing and deep cleaning and sanitation. We limited travel for our associates, implemented work from home options where appropriate, and limited physical contact with our customers. We reduced our running schedules in our facilities to below demand, to maintain order flow to our customers while simultaneously reducing inventories to align them with our lower customer demand. In order to preserve cash, we placed a large percentage of our associates either on rotating layoff or furlough."

Sales of residential products were down 38% for the quarter, however, the residential business has recovered more quickly than originally anticipated when the initial impact of the COVID-19 pandemic became apparent in mid-March, Frierson said. The specialty retail segment was down by 50% in April, recovered to being down 35% in May and was down less than 10% in June. 

"By the end of June, we saw positive sales comparisons versus last year, and July has started off above prior year in sales and order entry," he added. 

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