Dixie Group Q1 FY20: sales down 9.1%; net loss $2.68 mn

26 May '20

2 min read

Pic: Dixie Group

The Dixie Group, a leading marketer of high-end residential and commercial broadloom carpet and rugs, reported 9.1 per cent sales decline to $80.57 million in first quarter (Q1) FY20 ended on March 28, 2020 compared to sales of $88.60 million in same period prior year. Company reported a net loss of $2.68 million (Q1 FY19: $6.67 million).

"We had a slow start to our sales in January, but improved in February before finally seeing the slide in sales due to the Covid-19 crisis impact us the last three weeks of the quarter. Our low point in orders occurred around the Easter holiday and have improved each week since that time,” Daniel K Frierson, chairman and chief executive officer at The Dixie Group, said in a press release.

Gross profit for Q1 FY20 were $18.99 million ($18.93 million). Operating loss were $1.33 million ($4.8 million).

“Despite the impact of the Covid-19 pandemic, our residential hard surface sales were still up over 80 per cent from the first quarter of 2019. All brands in specialty retail were strong,” Frierson said.

Hard surface sales were gaining a lot of momentum in both Trucor and Fabrica Wood. Our 2020 winter market season was our best in many years. Dealer sentiment was very positive, and our new products and innovations were very well received.”

“We showcased more than 50 new soft surface products including two key innovations. First, we introduced the TECHnique Collection, a new tufting innovation which delivers a clean crisp, woven like visual for beautiful patterns. We will utilise TECHnique in both wool and nylon in our Masland and Fabrica divisions,” Frierson said in the release.

Our commercial product sales in the first quarter were down 12.9 per cent on a year over year basis while the industry we believe was down in the low single digits for the same time periods.”

“Since the second week of April, our sales and orders have continued to improve and in May we anticipate sales and orders being down in the 35 per cent range but continuing to improve sequentially. Many of our customers are reopening and beginning to generate business,” Frierson said.

Fibre2Fashion News Desk (JL)

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