THE DIXIE GROUP REPORTS NET INCOME FOR THE THIRD QUARTER OF 2026

Rhea-AI Summary

The Dixie Group (OTCQB: DXYN) reported third-quarter net income of $577,000, marking its third consecutive profitable quarter of 2026.

Sales rose 4.6% year over year to $65.2 million. Diluted earnings were $0.04 per share, versus a $0.29 loss. Operating income reached $2.4 million, versus a $2.0 million loss, while gross margin increased to 26.6% from 24.8%. Selling and administrative expenses fell to $14.6 million from $16.4 million.

For the nine months ended September 26, 2026, sales declined 0.4% to $193.2 million, but net income reached $2.8 million versus a $4.6 million loss. Gross margin rose to 29.4% from 27.0%; excluding the out-of-period tariff-refund effect, it would have been 28.2%. Nine-month interest expense increased to $5.8 million from $5.4 million. Total debt rose $0.5 million from fiscal year-end, driven by operating needs.

19 points · 2 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 10 points

How the balance works

Positive

• Major pointThird-quarter net income reached $577,000, or $0.04 diluted EPS, versus a $4.1 million loss, or $0.29 per share.
• Major pointNine-month operating income increased to $8.742 million from $1.175 million a year earlier.
• Moderate pointThird-quarter sales increased 4.6% to $65.2 million from $62.4 million a year earlier.
• Moderate pointThird-quarter operating income reached $2.384 million, versus a $2.025 million operating loss a year earlier.
• Moderate pointThird-quarter gross margin improved to 26.6% from 24.8% a year earlier.
• Moderate pointNine-month gross margin reached 29.4%, versus 27.0%; excluding the out-of-period tariff-refund effect, it would have been 28.2%.

13 minor points

• Minor pointThird-quarter selling and administrative expenses fell to $14.642 million from $16.365 million, including a favorable display-capitalization adjustment.
• Minor pointThird-quarter other operating expense fell to $136,000 from $1.022 million a year earlier.
• Minor pointThird-quarter interest expense decreased to $1.890 million from $2.012 million a year earlier.
• Minor pointThird-quarter continuing-operations income reached $712,000, versus a $3.998 million loss a year earlier.
• Minor pointSoft-surface sales increased 7.1% year over year in the third quarter.
• Minor pointFabrica wood sales grew 15.3% year over year in the third quarter.
• Minor pointNine-month net income reached $2.816 million, or $0.18 diluted EPS, versus a $4.614 million loss, or $0.32 per share.
• Minor pointNine-month continuing-operations income reached $3.196 million, versus a $4.325 million loss a year earlier.
• Minor pointTariff refunds were substantially all received by quarter-end.
• Minor pointNine-month selling and administrative expenses fell to $47.367 million from $50.016 million a year earlier.
• Minor pointNine-month other operating results improved to $38,000 income from $857,000 expense a year earlier.
• Minor pointCash and cash equivalents increased to $3.706 million from $3.204 million at fiscal year-end 2025.
• Minor pointStockholders' equity increased to $11.713 million from $8.798 million at fiscal year-end 2025.

Negative

• Moderate pointNine-month sales declined 0.4% to $193.220 million from $193.942 million a year earlier.
• Moderate pointTotal debt increased $0.5 million from fiscal year-end, driven by operating needs. 8.1% of market cap
• Moderate pointCurrent liabilities of $111.024 million exceeded current assets of $106.998 million at September 26, 2026.
• Moderate pointCombined accounts payable and accrued expenses increased $6.7 million from fiscal year-end 2025.
• Moderate pointNine-month facility consolidation and severance expenses rose to $807,000 from $349,000 a year earlier. 13% of market cap

5 minor points

• Minor pointNine-month interest expense increased to $5.761 million from $5.377 million a year earlier.
• Minor pointCurrent long-term debt increased to $58.894 million from $56.642 million at fiscal year-end 2025.
• Minor pointThird-quarter facility consolidation and severance expenses rose to $195,000 from $117,000 a year earlier.
• Minor pointThird-quarter discontinued-operations losses widened to $135,000 from $79,000 a year earlier.
• Minor pointNine-month discontinued-operations losses widened to $380,000 from $289,000 a year earlier.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

DALTON, Ga., Nov. 12, 2026 /PRNewswire/ -- The Dixie Group, Inc. (OTCQB: DXYN) today reported financial results for the quarter ended September 26, 2026.

Highlights of financial results in the third quarter of 2026 as compared to the results in the third quarter of 2025:

• Net sales rose 4.6% to $65.2 million, up from $62.4 million in the third quarter of 2025.
• Gross profit margin improved 180 basis points to 26.6%, from 24.8% a year ago, reflecting cost reductions and improved operating efficiencies.
• Operating income was $2.4 million, compared with an operating loss of $2.0 million in the previous year quarter, a $4.4 million improvement.
• Net income was $577,000, or $0.04 per diluted share, compared with a net loss of $4.1 million, or $(0.29) per diluted share, in the third quarter of 2025. Income from continuing operations was $0.05 per diluted share.
• The third quarter was the Company's third consecutive profitable quarter, bringing net income for the first nine months of 2026 to $2.8 million, or $0.18 per diluted share, compared with a net loss of $4.6 million, or $(0.32) per diluted share, in the prior-year period.

For the third quarter of 2026, the Company had net sales of $65,225,000 as compared to $62,379,000 in the same quarter of 2025, an increase of 4.6%. The Company had an operating income of $2,384,000 compared to an operating loss of $2,025,000 in the third quarter of 2025.

The net income from continuing operations in the third quarter of 2026 was $712,000 or $0.05 per diluted share. In 2025, the net loss from continuing operations for the third quarter was $3,998,000 or $0.28 per diluted share.

For the nine months ended September 26, 2026, net sales were $193,220,000 or 0.4% below the net sales for the nine-month period ended September 27, 2025 at $193,942,000. The operating income for the first nine months of 2026 was $8,742,000 compared to an operating income of $1,175,000 in the same period of the prior year.

The Company had a net income from continuing operations of $3,196,000 or $0.21 per diluted share for the nine months ended September 26, 2026 compared to a net loss from continuing operations of $4,325,000 or $0.30 per diluted share in the nine-month period ended September 27, 2025.

Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "We are pleased to report our third consecutive profitable quarter of 2026. Net sales increased 4.6% over the third quarter of last year, and we returned to operating income for the quarter compared to an operating loss in the prior year period. Gross profit margins improved to 26.6% from 24.8%, reflecting cost reductions and improved operating efficiencies in our operations.

During the third quarter, the flooring industry continued to experience sluggish conditions. The market faced headwinds from continued high interest rates, increasing inflation, and high oil and energy prices resulting from the war in Iran. In addition, the midterm election cycle added to consumer uncertainty and unease. Existing home sales, a strong indicator of demand in the residential replacement flooring segment, are trending at historic lows for the fourth consecutive year. As we continue to monitor these conditions, we remain committed to controlling costs and improving profitability through our Profit Improvement Plan.

For the third quarter, year over year, net sales of soft surfaces increased 7.1%, led by our DuraSilkSD polyester category and our EnVisionSD solution dyed nylon products. We introduced 14 new soft surface styles across a range of price points in the quarter. The new offerings included products in our Masland and Fabrica wool collections, four commercial patterns in our Masland Energy collection and several new Affordable Fashion styles in our DH Floors segment.  

Our Fabrica wood program has been a positive part of our hard surface program with year over year growth of 15.3% in the third quarter. Also within our hard surface offerings, during the quarter, we introduced four new hard surface collections, including WPC, loose lay and high-end Fabrica wood. The introductions included our Chateau Accent collection, which features small planks for chevron, herringbone and parquet designs and is color-coordinated with our long-time best-selling Chateau collection.

While we do not anticipate meaningful interest rate relief in the near term, we believe there is significant pent-up demand in the housing market, driven by low housing availability and continued household formation. As we wait out the prolonged downturn in the housing market, we remain focused on introducing new products to the strongest parts of our markets and reducing expenses while continuing to provide beautiful quality products on a timely basis to our customers," Frierson concluded.

The gross profit margin for the third quarter of 2026 was 26.6% compared to 24.8% in the prior year. For the nine months ended September 2026, the gross profit margin was 29.4% compared to 27.0% in the first nine months of 2025.

The first nine months of 2026 included the benefit of the refund of IEEPA tariffs paid from February 1, 2025 to February 20, 2026. Adjusted for the out of period effect of this refund, the gross profit margin in the first nine months of 2026 would have been 28.2%. The Company has received payment of substantially all of the refund at quarter end.

Selling and administrative expenses were $14.6 million, or 22.4% of net sales, in the third quarter of 2026 compared with $16.4 million, or 26.2% of net sales, in the third quarter of 2025. The decrease was due to lower sample and marketing expenses, which included a favorable adjustment for the capitalization of display structures during 2026.

Receivables on our balance sheet increased by $5.3 million from the balance at fiscal year-end 2025 due to higher sales in the last month of the third quarter of 2026 as compared to the seasonally lower sales volume in the last month of the previous fiscal year. The third quarter 2026 net inventory value of $67.6 million was slightly higher than the 2025 fiscal year end value of $66.4 million.

Combined accounts payable and accrued expenses were $6.7 million greater at the 2026 third quarter end as compared to the 2025 year-end balance. Capital expenditures for the first nine months of 2026 were $247 thousand. Interest expense for the first nine months of 2026 was $5.8 million compared to $5.4 million in the first nine months of 2025. Our total debt on the balance sheet increased $0.5 million from fiscal year end driven by operating needs.

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.

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				Nine Months Ended
	September 26, 2026		September 27, 2025		September 26, 2026		September 27, 2025
NET SALES	$       65,225		$       62,379		$      193,220		$      193,942
Cost of sales	47,868		46,900		136,342		141,545
GROSS PROFIT	17,357		15,479		56,878		52,397
Selling and administrative expenses	14,642		16,365		47,367		50,016
Other operating (income) expense, net	136		1,022		(38)		857
Facility consolidation and severance expenses, net	195		117		807		349
OPERATING INCOME (LOSS)	2,384		(2,025)		8,742		1,175
Interest expense	1,890		2,012		5,761		5,377
Other (income) expense, net	(146)		(16)		(233)		67
INCOME (LOSS)  FROM CONTINUING OPERATIONS BEFORE TAXES	640		(4,021)		3,214		(4,269)
Income tax provision (benefit)	(72)		(23)		18		56
INCOME (LOSS)  FROM CONTINUING OPERATIONS	712		(3,998)		3,196		(4,325)
Loss from discontinued operations, net of tax	(135)		(79)		(380)		(289)
NET INCOME (LOSS)	$           577		$        (4,077)		$         2,816		$        (4,614)
BASIC EARNINGS (LOSS) PER SHARE:
Continuing operations	$          0.05		$         (0.28)		$          0.21		$         (0.30)
Discontinued operations	(0.01)		(0.01)		(0.03)		(0.02)
Net income (loss)	$          0.04		$         (0.29)		$          0.18		$         (0.32)
DILUTED EARNINGS (LOSS) PER SHARE:
Continuing operations	$          0.05		$         (0.28)		$          0.21		$         (0.30)
Discontinued operations	(0.01)		(0.01)		(0.03)		(0.02)
Net income (loss)	$          0.04		$         (0.29)		$          0.18		$         (0.32)
Weighted-average shares outstanding:
Basic	14,632		14,528		14,594		14,464
Diluted	14,725	1	14,528		14,687		14,464

 

THE DIXIE GROUP, INC. Consolidated Condensed Balance Sheets (in thousands)
	September 26, 2026		December 27, 2025
ASSETS	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$         3,706		$         3,204
Receivables, net of allowances for expected credit losses of $573 and $640	28,259		22,984
Receivables - tariff refunds	17		—
Inventories, net	67,593		66,370
Prepaid and other current assets	7,423		5,391
TOTAL CURRENT ASSETS	106,998		97,949
PROPERTY, PLANT AND EQUIPMENT, NET	25,774		29,154
OPERATING LEASE RIGHT-OF-USE ASSETS	22,456		23,649
RESTRICTED CASH	4,685		3,865
OTHER ASSETS	22,084		19,488
LONG-TERM ASSETS OF DISCONTINUING OPERATIONS	1,046		1,053
TOTAL ASSETS	$      183,043		$      175,158
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$       27,469		$       22,781
Accrued expenses	18,073		16,043
Current portion of long-term debt	58,894		56,642
Current portion of operating lease liabilities	5,365		4,553
Current liabilities of discontinued operations	1,223		1,073
TOTAL CURRENT LIABILITIES	111,024		101,092
LONG-TERM DEBT, NET	23,330		25,096
OPERATING LEASE LIABILITIES	18,244		20,200
OTHER LONG-TERM LIABILITIES	15,410		16,651
Long-Term Liabilities of Discontinued Operations	3,322		3,321
Stockholders' Equity	11,713		8,798
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$      183,043		$      175,158

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/the-dixie-group-reports-net-income-for-the-third-quarter-of-2026-302937998.html

SOURCE The Dixie Group, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were The Dixie Group's third-quarter 2026 earnings and sales?

The Dixie Group earned $577,000, or $0.04 per diluted share, on sales of $65.2 million in the quarter ended September 26, 2026. Sales rose 4.6% year over year. The prior-year quarter produced a net loss of $4.1 million, or $0.29 per diluted share.

How did tariff refunds affect The Dixie Group's nine-month 2026 gross margin?

Nine-month gross margin was 29.4%, but would have been 28.2% excluding the out-of-period effect of tariff refunds. The refunds covered IEEPA tariffs paid from February 1, 2025 to February 20, 2026. Substantially all of the refund had been received by quarter-end.

Why did The Dixie Group's receivables rise in the third quarter of 2026?

Receivables increased $5.3 million from fiscal year-end 2025 because sales in the final month of the third quarter were higher than the seasonally lower sales in the final month of the previous fiscal year.