Reports Q4 revenue $70.5M vs. $89.2M last year. Commenting on the results, Daniel Frierson, CEO, said, "Our fiscal year of 2022 was severely impacted by several negative factors specific to our Company and a general downturn that impacted our industry as a whole throughout most of the year. Beginning in the mid second quarter of 2022, the flooring industry started to see a decrease in demand that persisted through the remainder of the year. High inflation and rising interest rates negatively impacted consumer confidence and lowered discretionary spending. Home sales and residential remodeling both declined in the second half of the year. Our net sales in 2022 also reflected the year over year loss of approximately $23 million in sales with our largest mass merchant retail customer. Our sales with this customer ended in the first quarter of 2022 as the result of their change in strategy to focus on lower price point products. We also experienced supply chain problems and issues with our sample vendors which created delays in our new product introductions in 2022, particularly within our new decorative line and our hard-surface products. We incurred the cost of introducing these products in 2022 but, due to the products being release late in the year, we had little to no sales activity to offset these costs…In the third quarter of 2022 we began our plan to consolidate our manufacturing operations on the east coast. This plan was implemented to lower our fixed and variable costs by shutting higher cost assets, reducing staffing and aligning production with demand. Under this plan we consolidated all of our east coast tufting operations to our plant in Eton, Georgia, our east coast yarn production into our Roanoke, Alabama facility and we also relocated our east coast distribution of luxury vinyl flooring from our facility in Saraland, Alabama to our Atmore, Alabama plant. The consolidations have resulted in a 24% reduction of our associates. We estimate this plan, along with other actions, will result in annual improvement in operating results of over $25 million and return our gross margins to more normal levels."
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