Donna Shook removes used spools of thread from the creeling area at the Dixie Group carpet plant in Eton, Ga., in this file photo.The Dixie Group soared back to pre-recession prosperity in the third quarter with a 37 percent jump in sales from the third quarter of 2012, as Americans’ fondness for soft carpet and wool fibers returned with a vengeance.
The earnings announcement Wednesday sent Dixie’s stock soaring $1.87 to $12.97 per share, a market-beating 16.85 percent increase that ticked down slightly from a high during the day of $13.77. That’s the highest level at which its shares have traded since early 2007, and a remarkable one-day rise that made Dixie one of the the top 10 fastest-growing stocks in the U.S. on Wednesday.
The company sold $90.2 million worth of carpet during the quarter, and made $1.43 million, or 11 cents per diluted share. Those sales levels are well above the high-water mark set before the 2008 recession, the company announced, marking a return to health for the Chattanooga-based carpetmaker that has been a long time coming.
“All of our product categories were up, showing the broad nature of our market momentum,” said Dan Frierson, chairman and CEO of The Dixie Group. “Movement of soft fibers such as Stainmaster, TruSoft and the introduction of SolarMax has helped separate us from much of the competition.”
The market as a whole grew more slowly, Frierson said, sticking to high single-digits growth, which analysts expect to keep rising. At Dixie, residential sales grew 35 percent during the quarter, and commercial products sold at levels almost 40 percent higher than during the same period last year, Frierson said.