Donna Shook replaces used spools of thread in the creeling area of the Dixie Group plant in Eton, Georgia, in this file photo.The Dixie Group, Inc., lost $404,000, or 3 cents per share, during the second quarter due primarily to a drop in commercial carpet sales and extra expenses preparing for new carpet lines coming out this summer.
The Chattanooga-based carpet maker said today overall sales were down 3.8 percent from a year ago to $66.6 million. A year ago, Dixie earned $808,000, or 6 cents per share, from continuing operations.
“Favorable activity early in the year slowed as we got later into the quarter,” Dixie CEO Dan Frierson said in the quarterly earnings report released today. “We expect this slower pace to continue throughout the summer months.”
Dixie said sales of upper-line residential carpets are improving, however, and Frierson said new carpet lines being introduced this summer should help the company this fall.
“Our strategy of continuing to invest in new products during this slow economic recovery has proven successful, and we will continue to do so with the launch this quarter of both our line of Stainmaster TruSoft products, as well as our new “permaset” wool dyeing process,” Frierson said.