Flooring manufacturer The Dixie Group posted a third-quarter net loss of $3.7 million as sales fell 5.4% to $64.9 million. The company cited high interest rates, low home sales, and weak consumer confidence for reduced demand, while higher utility and medical costs further pressured margins.
"Net sales in the third quarter started off slow in the month of July but improved throughout the remainder of the quarter," said Dixie Chairman and CEO Daniel K. Frierson. "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%."