Dixie Group swings to $577K Q3 2026 profit
Sentiment and the balance of points
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Form Type
8-K
Rhea-AI Filing Summary
The Dixie Group, Inc. (DXYN) reported third-quarter results for the period ended September 26, 2026, with net sales of $65.225 million, up 4.6% from $62.379 million a year earlier. Operating income was $2.384 million, versus an operating loss of $2.025 million, and net income was $577,000 versus a net loss of $4.077 million. Gross profit margin rose to 26.6% from 24.8%; the company attributed the increase to cost reductions and improved operating efficiencies.
For the first nine months, net income was $2.816 million compared with a net loss of $4.614 million, while net sales were $193.220 million versus $193.942 million. Nine-month gross profit margin was 29.4%; adjusted for the out-of-period effect of tariff refunds, it would have been 28.2%, and substantially all of the refund had been received by quarter-end. Management described flooring demand as sluggish and said existing home sales were trending at historic lows for a fourth consecutive year.
Soft-surface sales rose 7.1% year over year, and the company introduced 14 new soft-surface styles and four new hard-surface collections during the quarter. Receivables increased $5.3 million from fiscal year-end 2025, which the company attributed to higher sales in the quarter’s final month.
2 points · 2 major0 major · 0 points
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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.
Positive
- Major pointQuarterly operating income reached $2.384 million, versus a $2.025 million loss a year earlier.
- Major pointNine-month net income was $2.816 million, versus a $4.614 million loss in 2025.
Negative
- None.
Filing Explained
The attached release also provides a balance-sheet snapshot as of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net sales: $65.225 million
Gross profit margin: 26.6%
Operating income (loss): $2.384 million
+4 more
7 metrics
Net sales
$65.225 million
Third quarter ended September 26, 2026; up 4.6% from $62.379 million in the prior-year quarter
Gross profit margin
26.6%
Third quarter; 24.8% in the prior-year quarter
Operating income (loss)
$2.384 million
Third quarter; compared with an operating loss of $2.025 million in the prior-year quarter
Net income (loss)
$577,000
Third quarter; compared with a net loss of $4.077 million in the prior-year quarter
Net sales
$193.220 million
Nine months ended September 26, 2026; $193.942 million in the prior-year period, down 0.4%
Operating income
$8.742 million
First nine months of 2026; $1.175 million in the prior-year period
Net income (loss)
$2.816 million
First nine months of 2026; compared with a net loss of $4.614 million in the prior-year period
Key Terms
gross profit margin, continuing operations, discontinued operations, out of period effect, +1 more
5 terms
gross profit margin financial
"The gross profit margin for the third quarter of 2026 was 26.6%"
Gross profit margin shows how much money a company keeps from sales after paying for the goods or services it sold. It’s like checking how much profit is left over from each dollar earned before covering other costs. A higher margin indicates the company makes more money from its sales, which helps assess its profitability and efficiency.
continuing operations financial
"Income from continuing operations was $0.05 per diluted share."
Continuing operations are the parts of a company's business that it expects to keep running into the future, excluding divisions or activities it has sold, closed, or classified as discontinued. Investors watch continuing operations because they show the company’s core ability to generate revenue and profit over time — like evaluating the healthy, ongoing crops on a farm rather than one-off harvests from fields you've already sold.
discontinued operations financial
"Loss from discontinued operations, net of tax"
Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.
out of period effect financial
"Adjusted for the out of period effect of this refund"
capitalization of display structures financial
"a favorable adjustment for the capitalization of display structures during 2026"
Earnings Snapshot
Net sales: $65.225 million
Third quarter ended September 26, 2026
Net sales
$65.225 million
Up 4.6% from $62.379 million
Gross profit margin
26.6%
Up 180 basis points from 24.8%
Operating income (loss)
$2.384 million
Compared with an operating loss of $2.025 million
Net income (loss)
$577,000
Compared with a net loss of $4.077 million
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much were DXYN’s third-quarter 2026 net sales?
Net sales were $65.225 million for the quarter ended September 26, 2026, up 4.6% from $62.379 million in the third quarter of 2025.
Did DXYN report a profit in the third quarter of 2026?
Yes. Net income was $577,000, or $0.04 per diluted share, compared with a net loss of $4.077 million, or $0.29 per diluted share, in the prior-year quarter. The company said this was its third consecutive profitable quarter.
How did tariff refunds affect DXYN’s nine-month gross margin?
The nine-month gross profit margin was 29.4%, compared with 27.0% in the prior-year period. The company said the 2026 figure included the benefit of IEEPA tariff refunds; adjusted for the out-of-period effect of the refund, the margin would have been 28.2%. Substantially all of the refund had been received by quarter-end.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 12, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
| (Registrant's telephone number, including area code) | |||||
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| OTCQB | ||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
1
Item 2.02. Results of Operations and Financial Condition.
On November 12, 2026, The Dixie Group, Inc. issued a press release reporting results for the second quarter ended September 26, 2026.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
(99.1) Press Release, dated November 12, 2026
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: November 12, 2026 | THE DIXIE GROUP, INC. | |||||||
By: /s/ Allen L. Danzey | ||||||||
| Allen L. Danzey | ||||||||
| Chief Financial Officer | ||||||||
Exhibit 99.1
CONTACT: Allen Danzey
Chief Financial Officer
706-876-5865
allen.danzey@dixiegroup.com
THE DIXIE GROUP REPORTS NET INCOME FOR THE THIRD QUARTER OF 2026
DALTON, GEORGIA (November 12, 2026) -- 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.
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The Dixie Group Reports Third Quarter 2026 Results
Page 2
November 12, 2026
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.
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The Dixie Group Reports Third Quarter 2026 Results
Page 3
November 12, 2026
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 | ||||||||||||||||||
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The Dixie Group Reports Third Quarter 2026 Results
Page 4
November 12, 2026
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 | |||||||
-END-