The Dixie Group Inc., which completed the sale of its commercial carpet business in September, reported higher sales and profits in the third quarter and said as a residential carpet and tile company it expects to continue to improve its financial results.
The Dalton, Georgia-based floorcovering manufacturer reported Friday it earned net income of $6.4 million, or 35 cents per share from its continuing operations, on sales of $89.3 million in the fiscal quarter ended Sept. 30. Sales of Dixie’s surviving residential carpet lines were up 27% in the quarter.
The company completed its sale of its commercial carpet business on Sept. 13.
“With the sale of our commercial business, the third quarter was the beginning of our company as a residential floorcovering only focus,” said Daniel K. Frierson, chairman and CEO of the Dixie Group. “During the quarter, we continued to gain market share and began significant changes, which we believe will enhance our future prospects.”
In response to the earnings announcement, Dixie shares jumped by more than 15% by midday in trading on the Nasdaq exchange. But Dixie’s stock closed Friday up just 3.3%, or 17 cents per share, to $5.32. Shares of Dixie closed the week at more than three times what the company’s stock price was a year ago.