Dixie income down despite higher sales

Dixie income down despite higher sales

Carpet maker beats forecasts in second quarter

August 3rd, 2017 by Dave Flessner in Breaking News

Buoyed by improving consumer sentiment, stock prices and home starts, the Dixie Group, Inc. boosted its sales by 1.8 percent in the second quarter and made an even bigger 9 percent sales gain in the first four weeks of the new fiscal quarter.

But net income for  the Dalton, Ga.-based carpet maker was still down 30 percent from a year ago, although the operating results were better than analysts had forecast for the second second.

Dixie said today its net income in the second quarter was $1.1 mllllon, or 7 cents per share, compared to net income of nearly $1.7 million, or 10 cents per share, in the same period a year ago. Income fom continuing operations equaled 8 cents per share, which was 3 cents per share better than the average estimate by industry analysts. Dixie's revenues also were better than analysts had projected.

In the first half of 2017, Dixie's net sales increased 5.2 percent to $204.7 million as compared to $194.6 million in the year earlier period.

Dixie CEO Dan Frierson said the company's residential floorcovering sales in the spring were ahead of the carpet industry as a whole, but the company's commercial carpet sales trailed most of the industry.

"The third quarter has started off upbeat with our floorcovering sales over 9 percent over the first four weeks as compared to this same time in 2016.," Frierson said. "We are seeing sales increases in both the residential and commercial markets during this period. Our business seems to track consumer sentiment and the stock market, as well as housing trends."

The company's shares closed Wednesday at $4.25. A year ago, they were trading at $3.66.