The Dixie Group Reports Financial Results for the Fourth Quarter and the Fiscal Year 2025
Rhea-AI Summary
The Dixie Group (OTCQB:DXYN) reported fourth-quarter 2025 net sales of $63.49M (down 1.4% YOY) and fiscal 2025 net sales of $257.43M (down 2.9% YOY). The company recorded a fourth-quarter net loss of $3.00M and a 2025 net loss from continuing operations of $7.28M (or $0.50 per diluted share).
Gross margin improved to 27.0% in 2025 from 24.7% in 2024. Company-explained tariff impacts totaled about $1.4M for 2025 and $3.3M through March 2026. Management launched a $13M profit-improvement plan for 2026 focused on pricing, selling expense reductions and administrative cost cuts.
Positive
- Gross margin improved to 27.0% (+230 bps YOY)
- Selling and administrative costs down $2.2M year-over-year
- $13M profit improvement plan announced for 2026
- Soft surface sales down while industry fell ~4–5%, indicating share gain
Negative
- Fiscal 2025 net sales down 2.9% to $257.4M
- Fourth-quarter 2025 net sales down 1.4% to $63.49M
- Net loss from continuing operations $7.28M (2025) or $0.50 per diluted share
- Tariff timing and increases caused an estimated $1.4M negative impact in 2025; $3.3M paid through March 2026
- Interest expense rose $0.9M to $7.3M in 2025
- Accounts payable and accrued expenses increased $8.9M due to payment timing and extended vendor terms
News Market Reaction – DXYN
In the Mar 26 session, DXYN gained 4.83%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
DALTON, GA / ACCESS Newswire / March 26, 2026 / The Dixie Group, Inc. (OTCQB:DXYN) today reported financial results for the fourth quarter and the year ended December 27, 2025.
In the fourth quarter of 2025, net sales were
For the fiscal year 2025, net sales for the Company were
Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "In 2025, we continued to navigate through a challenging economic environment while staying focused on strategic internal initiatives. Our focus on higher-end flooring markets, operational efficiency and disciplined cost management enabled us to improve year over year gross profit margins and financial results despite ongoing softness in residential demand. We were forced to manage the unexpected implementation of "Liberation Day" tariffs and other tariff measures throughout much of 2025. We implemented price increases in order to mitigate the financial impact of the tariffs, however, the difference in timing of the tariffs and the price increases resulted in a negative financial impact on the year of approximately
As we closed out 2025 we implemented key drivers as part of a profit improvement plan for 2026 totaling
Throughout 2025 our sales and marketing strategy focused on our strengths in design and color through our Step into Color campaign. Through this initiative we have showcased colors in our standard palette that stands out from our competitors. We also launched an updated custom color program giving our retail and designer partners the ability to custom color any of our white dyeable nylon products. We are building on this momentum in 2026 through several key growth initiatives with our larger retail accounts and buying groups.
Our soft surface sales for both the fourth quarter and the year were down less than
during this difficult period. So far in 2026, our sales pattern is similar to the prior year with sales of soft surfaces down slightly but performing better than our hard surface products.
Despite recent reductions in interest rates, market conditions remain uncertain as the overall flooring industry continues to be negatively impacted by low existing home sales, delayed remodeling projects due to low consumer confidence and limited housing availability. Historically, such prolonged periods of decline in the flooring markets have been followed by several periods of strong growth driven by pent up consumer demand. We believe the actions we have taken position us well for long-term growth and value creation." Frierson concluded.
The gross margin for the fiscal year 2025 was
The Company's net receivables were
This press release contains forward-looking statements. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management and the Company at the time of such statements and are not guarantees of performance. Forward-looking statements are subject to risk factors and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Such factors include the levels of demand for the products produced by the Company. Other factors that could affect the Company's results include, but are not limited to, availability of raw material and transportation costs related to petroleum prices, the cost and availability of capital, integration of acquisitions, ability to attract, develop and retain qualified personnel and general economic and competitive conditions related to the Company's business. Issues related to the availability and price of energy may adversely affect the Company's operations. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.
THE DIXIE GROUP, INC.
Consolidated Condensed Statements of Operations
(unaudited; in thousands, except earnings (loss) per share)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 27, | December 28, | December 27, | December 28, | |||||||||||||
NET SALES | $ | 63,487 | $ | 64,388 | $ | 257,429 | $ | 265,026 | ||||||||
Cost of sales | 46,335 | 50,430 | 187,880 | 199,515 | ||||||||||||
GROSS PROFIT | 17,152 | 13,958 | 69,549 | 65,511 | ||||||||||||
Selling and administrative expenses | 17,657 | 18,541 | 67,673 | 69,850 | ||||||||||||
Other operating expense, net | 352 | 59 | 1,209 | 200 | ||||||||||||
Facility consolidation and severance expenses, net | 200 | 555 | 549 | 1,327 | ||||||||||||
OPERATING INCOME (LOSS) | (1,057 | ) | (5,197 | ) | 118 | (5,866 | ) | |||||||||
Interest expense | 1,932 | 1,600 | 7,309 | 6,380 | ||||||||||||
Other (income) expense, net | (56 | ) | (15 | ) | 11 | (7 | ) | |||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES | (2,933 | ) | (6,782 | ) | (7,202 | ) | (12,239 | ) | ||||||||
Income tax provision (benefit) | 17 | (45 | ) | 73 | (29 | ) | ||||||||||
LOSS FROM CONTINUING OPERATIONS | (2,950 | ) | (6,737 | ) | (7,275 | ) | (12,210 | ) | ||||||||
Loss from discontinued operations, net of tax | (51 | ) | (461 | ) | (340 | ) | (790 | ) | ||||||||
NET LOSS | $ | (3,001 | ) | $ | (7,198 | ) | $ | (7,615 | ) | $ | (13,000 | ) | ||||
BASIC LOSS PER SHARE: | ||||||||||||||||
Continuing operations | $ | (0.20 | ) | $ | (0.47 | ) | $ | (0.50 | ) | $ | (0.83 | ) | ||||
Discontinued operations | (0.01 | ) | (0.03 | ) | (0.02 | ) | (0.05 | ) | ||||||||
Net loss | $ | (0.21 | ) | $ | (0.50 | ) | $ | (0.52 | ) | $ | (0.88 | ) | ||||
DILUTED LOSS PER SHARE: | ||||||||||||||||
Continuing operations | $ | (0.20 | ) | $ | (0.47 | ) | $ | (0.50 | ) | $ | (0.83 | ) | ||||
Discontinued operations | (0.01 | ) | (0.03 | ) | (0.02 | ) | (0.05 | ) | ||||||||
Net loss | $ | (0.21 | ) | $ | (0.50 | ) | $ | (0.52 | ) | $ | (0.88 | ) | ||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 14,533 | 14,358 | 14,481 | 14,639 | ||||||||||||
Diluted | 14,533 | 14,358 | 14,481 | 14,639 | ||||||||||||
THE DIXIE GROUP, INC.
Consolidated Condensed Balance Sheets
(in thousands)
December 27, | December 28, | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 3,204 | $ | 19 | ||||
Receivables, net of allowances of expected credit losses of | 22,984 | 23,325 | ||||||
Inventories, net | 66,370 | 66,852 | ||||||
Prepaid expenses | 5,391 | 5,643 | ||||||
Total Current Assets | 97,949 | 95,839 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 29,154 | 33,747 | ||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 23,649 | 25,368 | ||||||
RESTRICTED CASH | 3,865 | - | ||||||
OTHER ASSETS | 19,488 | 19,854 | ||||||
LONG-TERM ASSETS OF DISCONTINUED OPERATIONS | 1,053 | 1,064 | ||||||
TOTAL ASSETS | $ | 175,158 | $ | 175,872 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 22,781 | $ | 14,884 | ||||
Accrued expenses | 16,043 | 15,057 | ||||||
Current portion of long-term debt | 56,642 | 53,818 | ||||||
Current portion of operating lease liabilities | 4,553 | 3,804 | ||||||
Current liabilities of discontinued operations | 1,073 | 1,156 | ||||||
TOTAL CURRENT LIABILITIES | 101,092 | 88,719 | ||||||
LONG-TERM DEBT, NET | 25,096 | 28,530 | ||||||
OPERATING LEASE LIABILITIES | 20,200 | 22,295 | ||||||
OTHER LONG-TERM LIABILITIES | 16,651 | 16,712 | ||||||
LONG-TERM LIABILITIES OF DISCONTINUED OPERATIONS | 3,321 | 3,398 | ||||||
Stockholders' Equity | 8,798 | 16,218 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 175,158 | $ | 175,872 | ||||
SOURCE: The Dixie Group
View the original press release on ACCESS Newswire