The Dixie Group Reports Net Loss For The Third Quarter Of 2025
Rhea-AI Summary
The Dixie Group (OTCQB:DXYN) reported results for the quarter ended September 27, 2025: Q3 net sales $62.4M vs $64.9M a year earlier and a Q3 net loss from continuing operations $3.998M ($0.28 diluted). For the nine months, net sales were $193.9M (down 3.3% YoY) and the company recorded a nine-month operating income of $1.175M versus an operating loss a year earlier.
Gross margin held near prior-year levels at 24.8%. Inventory was $68.5M (10.8% below prior-year September). Interest expense rose to $2.0M in Q3. The company recorded an estimated liability and entered memoranda of understanding to settle two PFAS lawsuits and reached an agreement in principle on a third, subject to conditions.
Positive
- Nine-month operating income of $1.175M versus a prior-year operating loss
- Gross margin steady at 24.8% of net sales in Q3
- Fabrica wood program net sales +7.4% year over year for nine months
- DuraSilk SD collection showed measurable market share gains in polyester
Negative
- Q3 net sales declined 3.9% to $62.4M year over year
- Net loss from continuing operations of $3.998M in Q3
- Inventory down 10.8% versus September 2024
- Accounts payable and accrued expenses rose by $14.2M since December 2024
- Recorded estimated liability and MOUs to settle PFAS-related lawsuits
- Interest expense increased to $2.0M in Q3 from $1.6M prior year
News Market Reaction – DXYN
On the day this news was published, DXYN declined 10.14%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
DALTON, GA / ACCESS Newswire / November 12, 2025 / The Dixie Group, Inc. (OTCQB:DXYN) today reported financial results for the quarter ended September 27, 2025.
For the third quarter of 2025, the Company had net sales of
For the nine months ended September 27, 2025, net sales were
Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "Third quarter sales got off to a slow start as a result of headwinds in the housing markets tied to high interest rates and high housing prices. Despite a slow start to the quarter, we saw a strong rebound in sales for September giving us momentum as we entered the fourth quarter. The average weekly order entry rate for the first month of the fourth quarter was
Looking ahead to the 2026 fiscal year, we are focused on a profit improvement plan consisting of year over year cost reductions and operational efficiencies in excess of
For the third quarter and for the first nine months of 2025 our year over year soft surface net sales were down less than
A key growth segment has been our DuraSilk™SD collection which has shown strong growth and gained share of the polyester market. Our high-end carpet segment also had positive growth in the quarter for both nylon and decorative. Building on this momentum, in the third quarter we introduced two new DuraSilk™ polyester carpet styles and six new decorative carpet styles.
In our hard surface segment, our Fabrica wood program is a highlight, with net sales increasing
While market headwinds persist, especially within residential housing and consumer confidence, our team remains committed to high end customer service, design focused product introductions and operational excellence. Our continued focus on cost reductions and operational efficiencies will be instrumental in navigating industry challenges and driving improved profitability in future periods." Frierson concluded.
Net sales in the third quarter of 2025,
Selling and administrative expenses in the third quarter of 2025 were
On our September fiscal month end balance sheet, receivables increased
Subsequent to quarter end, the Company entered into a memorandum of understanding to settle two of its PFAS related lawsuits and the Company has obtained an agreement in principle to be dismissed without prejudice from a third PFAS related lawsuit. An estimated liability for the proposed settlement was recorded within the third quarter results. The proposed agreements are subject to certain conditions and final negotiations with the plaintiffs in the matters.
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.
CONTACT:
Allen Danzey
Chief Financial Officer
706-876-5865
allen.danzey@dixiegroup.com
THE DIXIE GROUP, INC.
Consolidated Condensed Statements of Operations
(unaudited; in thousands, except earnings (loss) per share)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
NET SALES | $ | 62,379 | $ | 64,877 | $ | 193,942 | $ | 200,638 | ||||||||
Cost of sales | 46,900 | 48,947 | 141,545 | 149,085 | ||||||||||||
GROSS PROFIT | 15,479 | 15,930 | 52,397 | 51,553 | ||||||||||||
Selling and administrative expenses | 16,365 | 17,561 | 50,016 | 51,309 | ||||||||||||
Other operating expense, net | 1,022 | 193 | 857 | 141 | ||||||||||||
Facility consolidation and severance expenses, net | 117 | 283 | 349 | 772 | ||||||||||||
OPERATING INCOME (LOSS) | (2,025 | ) | (2,107 | ) | 1,175 | (669 | ) | |||||||||
Interest expense | 2,012 | 1,628 | 5,377 | 4,780 | ||||||||||||
Other (income) expense, net | (16 | ) | (2 | ) | 67 | 8 | ||||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES | (4,021 | ) | (3,733 | ) | (4,269 | ) | (5,457 | ) | ||||||||
Income tax provision (benefit) | (23 | ) | (4 | ) | 56 | 16 | ||||||||||
LOSS FROM CONTINUING OPERATIONS | (3,998 | ) | (3,729 | ) | (4,325 | ) | (5,473 | ) | ||||||||
Loss from discontinued operations, net of tax | (79 | ) | (182 | ) | (289 | ) | (329 | ) | ||||||||
NET LOSS | $ | (4,077 | ) | $ | (3,911 | ) | $ | (4,614 | ) | $ | (5,802 | ) | ||||
BASIC EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Continuing operations | $ | (0.28 | ) | $ | (0.26 | ) | $ | (0.30 | ) | $ | (0.37 | ) | ||||
Discontinued operations | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.02 | ) | ||||||||
Net loss | $ | (0.29 | ) | $ | (0.27 | ) | $ | (0.32 | ) | $ | (0.39 | ) | ||||
DILUTED EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
Continuing operations | $ | (0.28 | ) | $ | (0.26 | ) | $ | (0.30 | ) | $ | (0.37 | ) | ||||
Discontinued operations | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.02 | ) | ||||||||
Net loss | $ | (0.29 | ) | $ | (0.27 | ) | $ | (0.32 | ) | $ | (0.39 | ) | ||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 14,528 | 14,455 | 14,464 | 14,733 | ||||||||||||
Diluted | 14,528 | 14,455 | 14,464 | 14,733 | ||||||||||||
THE DIXIE GROUP, INC.
Consolidated Condensed Balance Sheets
(in thousands)
September 27, | December 28, | |||||||
ASSETS | (Unaudited) | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 3,438 | $ | 19 | ||||
Receivables, net of allowances for expected credit losses of | 26,286 | 23,325 | ||||||
Inventories, net | 68,491 | 66,852 | ||||||
Prepaid and other current assets | 6,607 | 5,643 | ||||||
TOTAL CURRENT ASSETS | 104,822 | 95,839 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 30,284 | 33,747 | ||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 24,739 | 25,368 | ||||||
RESTRICTED CASH | 3,886 | - | ||||||
OTHER ASSETS | 19,087 | 19,854 | ||||||
LONG-TERM ASSETS OF DISCONTINUING OPERATIONS | 1,099 | 1,064 | ||||||
TOTAL ASSETS | $ | 183,917 | $ | 175,872 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 26,763 | $ | 14,884 | ||||
Accrued expenses | 17,383 | 15,057 | ||||||
Current portion of long-term debt | 55,893 | 53,818 | ||||||
Current portion of operating lease liabilities | 4,451 | 3,804 | ||||||
Current liabilities of discontinued operations | 1,133 | 1,156 | ||||||
TOTAL CURRENT LIABILITIES | 105,623 | 88,719 | ||||||
LONG-TERM DEBT, NET | 25,539 | 28,530 | ||||||
OPERATING LEASE LIABILITIES | 21,412 | 22,295 | ||||||
OTHER LONG-TERM LIABILITIES | 16,143 | 16,712 | ||||||
Long-Term Liabilities of Discontinued Operations | 3,443 | 3,398 | ||||||
Stockholders' Equity | 11,757 | 16,218 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 183,917 | $ | 175,872 | ||||
SOURCE: The Dixie Group
View the original press release on ACCESS Newswire
FAQ
What were The Dixie Group (DXYN) Q3 2025 net sales and net loss?
How did The Dixie Group's nine-month 2025 operating income compare to 2024?
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