Dixie Group reports Q2 EPS (11c) vs. (26c) last year

Reports Q2 revenue $74M vs. $83.6M last year. Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, “Our second quarter results continued to show the positive impact of the plant consolidation and cost reductions we began in 2022. Our gross margins were strong as our manufacturing plants continue to operate at levels of high efficiency despite the lower year over year sales volume. A significant factor in the year over year sales decline was a loss of volume in the mass merchant channel, with our primary customer’s strategy shifting toward lower price points. Excluding our mass merchant sales, net sales were down 9.1% over the prior year quarter. This decline in sales was primarily the continued result of high inflation and increased interest rates impacting consumer confidence and demand in the second quarter of 2023. For the first half of 2023, we have experienced higher selling expenses driven by samples and marketing investment for new product offerings, particularly in our new decorative line and the growing hard surface flooring market. The majority of the benefit of this current year expense will be reflected in sales in future periods.”