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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


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