A worker moves a roll of carpet at the Dixie Group in this 2013 file phoroThe Dixie Group is one of the five biggest losers on the stock exchange at midday today after the Chattanooga-based carpet maker reported earnings and sales fell below what the market expected.
Shares of the Dixie Group plunged by more than 25 percent by midday today, giving up more than $35 million in market value so far today.
Dixie Group reported third-quarter net income of $66,000, or 1 cent per share, after reporting a loss in the same period a year earlier. Dixie adjusted net income in the three months ended Sept. 30 totaled $465,000, or 3 cents per share, which was 14 cents per share below analysts’ forecasts. Revenues of $108.9 million in the quarter were $7.2 million below expectations.
Dixie shares fell by $2.25 a share, or more than 25 percent, to $6.74 per share – the lowest price in nearly a year.
“Sales in the third quarter started off strong, but moderated throughout the period, similar to what we experienced in the second quarter of this year,” Dixie CEO Dan Frierson said in a statement. “Sales for residential products declined 1.5 percent versus the same period a year ago while the industry, we believe, declined in the low single digits. “
Frierson said he expects the residential remodeling market to have modest growth for the remainder of the year while commercial carpet sales should see continue to see a growth in sales.