United States Of America : Net sales down 7.9% at Dixie in Q3

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Net sales down 7.9% at Dixie in Q3

27
Oct '16

Dixie Group, a leading marketer and manufacturer of floor covering products, reported net sales of $100.297 million for the quarter ended September 24, 2016. This is 7.9 per cent below Q3 of 2015 sales of $108.908 million. Income from continuing operations was $573,000, as compared to income from continuing operations of $84,000, in the Q3 of 2015.

However, operating margins have slightly improved to 25.8 per cent despite low sales. Despite $1.5 million lower selling and administrative costs, the selling and administrative percent of net sales increased from 23.2 per cent in the third quarter of last year to 23.7 per cent of sales in the third quarter of 2016 due to the lower sales volume.

“Albeit the third quarter took off at a slow pace, the situation improved with time. Our commercial product sales were 13 per cent below the prior year. The commercial market was also slightly down on a year over year basis. Residential product sales were 2 per cent below the prior year period,” said Daniel K Frierson, chairman and CEO of Dixie.

According to Frierson, there was modest decline in residential replacement housing activity during the summer. Apparently, the floor covering market was also affected by a drop in consumer expectations and political uncertainty.

Speaking of the steps taken by the company to improve their sales, Frierson said, “We continue to reduce expenses to increase our efficiency and respond to the lower sales volumes. We continue to closely monitor our production schedules in an effort to minimise cost.” (RR)

Fibre2Fashion News Desk – India

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