Home / Knowledge / News / Textiles / Q2FY16 sales marginally higher at Dixie Group
Q2FY16 sales marginally higher at Dixie Group
30
Jul '15
Sales for the second fiscal quarter ended June 27, 2015 at US based marketer of carpets and rugs, Dixie Group rose marginally over the same period of the previous fiscal.

Sales for the second quarter of fiscal 2016 were $109.95 million, up 1.88 per cent as compared to $107.92 million in the same quarter a fiscal ago.

“Sales for residential products declined 0.4 per cent as against the same quarter in the prior fiscal, while the industry was down mid to low single digits,” a Dixie Group press release said.

Sales of residential products started stronger in April but slowed down during the quarter relative to its performance a fiscal ago.

“However, we anticipate the residential remodeling market to have marginal growth for the reminder of the fiscal,” Dixie Group added.

“Our increase in commercial product sales was 6.7 per cent compared to the same period last fiscal, and as compared to low single digit industry growth as per our estimate,” it informed.

Masland Commercial products of Dixie Group had a sales increase of 17.7 per cent year-over-year basis driven by the creation of Masland Hospitality late in 2014.

Gross profit for the quarter was higher at 26.7 per cent of net sales as against 24.7 per cent in the prior fiscal second quarter and 24.3 per cent in the first quarter of fiscal 2016.

“Gross profit improved as a result of improved operations following our restructuring, and income of $459,000 from an adjustment to estimated acquisition-related contingent payments,” it said.

“We anticipate continued improvements in waste, training and quality costs in the third and fourth quarters,” CEO Daniel Frierson said.

Operating income reached $2.2 million for the reporting quarter from $588,000 for the corresponding quarter of the previous fiscal.

Selling and administrative costs were 23.8 per cent of net sales as compared to 22.5 per cent for last fiscal's same quarter.

Facility consolidation and asset impairment expenses during the period were $875,000 as compared to $1.7 million a year ago.

The carpet marketer has completed its West Coast consolidation plan and the only remaining significant East Coast manufacturing consolidation activities are in its Atmore and Saraland facilities.

Other restructuring-related expenses, reflected in its higher cost of sales, were higher than the normal levels of training, quality and waste costs for the period.

These costs improved relative to the first quarter and it expects them to further decline in the second half of the fiscal.

Profit from continuing operations was $516,000 or $0.03 per diluted share, versus a loss of $509,000, or $0.04 per diluted share in the second quarter of fiscal 2015.

Frierson too added, “Sales in the second quarter started off strong but moderated throughout the period and our sales were 1.9 per cent ahead of the same quarter last fiscal while the industry overall was down slightly.”

“Excluding Atlas Carpet Mills, our sales growth for the quarter on a year-over-year basis was 4.6 per cent,” he explained. (AR)

Fibre2Fashion News Desk - India


Must ReadView All

Textiles | On 21st Jul 2017

No shortage of cotton & yarn in country: Minister

There is no shortage of cotton and yarn in the country, and the...

Pic courtesy: Sutlej Textiles & Industries Ltd

Textiles | On 21st Jul 2017

Sutlej Textiles’ Q1 FY18 EBITDA expands to Rs 76.28 cr

Sutlej Textiles and Industries Ltd (STIL), one of India’s largest...

Textiles | On 21st Jul 2017

CAI revises 2016-17 cotton crop to 337.25 lakh bales

Cotton Association of India (CAI) has upwardly revised cotton crop...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X