The Dixie Group, Inc., capitalized on the improving housing market this spring to boost sales by nearly 27 percent, helping the Chattanooga-based carpet maker return to profitability in the second quarter.
Dixie’s stock rose by nearly 8.6 percent, or 71 cents per share, to close Wednesday at $8.99 per share
Dixie said Wednesday it earned $1.68 million, or 13 cents per share, on sales of $83.6 million in the quarter ended June 30. In the same period a year ago, Dixie lost $404,000, or 3 cents per share, on sales of $66.56 million.
“The second quarter was one of strong performance both residentially and commercially,” Dixie Group CEO Dan Frierson said in a statement. “It appears that the residential carpet market is now being positively impacted by the increase in the housing sector that began in 2012.”
Dixie said its residential carpet sales were up 27 percent and comercial sales increased 21 percent over the same period a year ago. Dixie officials estimate the company’s residential sales gains were triple the overall carpet industry increases during the past year.
“Our residential growth was a combination of conntinued strength in our mass merchant area, positive impact of our successful integration of our Gulstain products purchased last year, strong growth in our Stainmaster, TruSoft and SolarMax products, and continued growth in our wool business,” said John Faulker, Dixie’s chief financial officer.