Pressures on the residential housing market continue to affect sales for The Dixie Group which reported third-quarter sales of $68.6 million, down 4.4%, for the period ending September 30, 2023, compared to the same period last year. The company reported a net loss of $2.4 million compared to a net loss of $8.8 million in the same period last year.  

Daniel K. Frierson, Chairman and Chief Executive Officer commented on the results, "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.

"In order to better position our company strategically, we will start operations on our own extrusion of nylon in the first quarter of 2024. We have taken this action to moderate the impact of any disruptions of raw materials in the future and to lower our costs.

"In addition to lowering costs and improving operations over the last year, we continue to invest in our growth initiatives which have enabled us to gain market share.

"We expect our selling expenses to return to a more reasonable level next year. Despite the investment in many new products, we were able to reduce debt by over $3 million at the end of the third quarter as compared to the end of the prior year."