The Dixie Group Reports Results for First Quarter of 2026
Rhea-AI Summary
Dixie Group (OTCQB:DXYN) reported first quarter 2026 net sales of $59.4 million, down from $63.0 million a year earlier. Operating income was $3.3 million versus $11,000 in 2025, and net income from continuing operations was $1.4 million, or $0.09 per diluted share, versus a $1.6 million loss.
Gross margin improved by 5.6 percentage points, aided by a $3.3 million IEEPA tariff refund receivable. Adjusted gross margin reached 28.6% of net sales versus 26.9% in 2025. Selling and administrative expenses fell to $16.0 million. Debt rose by $2.1 million and interest expense increased to $1.9 million.
AI-generated analysis. Not financial advice.
Positive
- Operating income was $3.3 million versus $11,000 in Q1 2025
- Net income from continuing operations was $1.4 million versus a $1.6 million loss
- Gross margin improved by 5.6 percentage points year over year
- Adjusted gross margin was 28.6% versus 26.9% of net sales
- Selling and administrative expenses declined to $16.0 million from $16.9 million
- Profit Improvement Plan estimated to add $17.8 million to year-over-year profit
Negative
- Net sales declined to $59.4 million from $63.0 million year over year
- Interest expense increased to $1.9 million from $1.5 million
- Total debt rose by $2.1 million during the first quarter of 2026
- Raw material costs began increasing in the second quarter of 2026
- Inventory increased to $68.1 million from $66.4 million at fiscal year-end 2025
- Accounts payable and accrued expenses were $4.3 million higher than December 2025
News Market Reaction – DXYN
On the day this news was published, DXYN gained 7.69%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
DALTON, GA / ACCESS Newswire / May 11, 2026 / The Dixie Group, Inc. (OTCQB:DXYN) today reported financial results for the quarter ended March 28, 2026.
For the first quarter of 2026, the Company had net sales of
Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "Continued soft market conditions within the flooring industry, driven by historical low existing home sales, high home prices and interest rates, were compounded in the first quarter of 2026 by the uncertainty caused by the conflict in the Middle East. Our gross profit margin in the first quarter of 2026 was boosted by the recognition of a
In the second quarter of 2026 we started seeing higher costs for our raw materials driven primarily by the higher price of oil. We have implemented a price increase in the second quarter, as have many others in the industry, to offset these rising material costs. Order entry in the second quarter of 2026 has been closely in line with the order entry for the same period in 2025.
In the first quarter we participated in multiple trade shows, including the International Surfaces trade show in Las Vegas, where we showcased thirty-four new broadloom carpet styles across our nylon, polyester and decorative collections. Our focus continues to be on the creation of differentiated styles for the mid to high end consumer with an emphasis on color, pattern and textural visuals. We also showcased new visuals and innovations in our hard surface offerings. This included new colors and patterns in our Fabrica wood program and expanded WPC offerings, with new visuals and colors, in our TRUCOR brand.", Frierson concluded.
The net sales for the first quarter of 2026 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.
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 | ||||||||
March 28, | March 29, | |||||||
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| |||||||
NET SALES | $ | 59,380 | $ | 62,990 | ||||
Cost of sales | 40,092 | 46,088 | ||||||
GROSS PROFIT | 19,288 | 16,902 | ||||||
Selling and administrative expenses | 15,996 | 16,874 | ||||||
Other operating income, net | (84 | ) | (98 | ) | ||||
Facility consolidation and severance expenses, net | 112 | 115 | ||||||
OPERATING INCOME | 3,264 | 11 | ||||||
Interest expense | 1,905 | 1,493 | ||||||
Other (income) expense, net | (32 | ) | 88 | |||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | 1,391 | (1,570 | ) | |||||
Income tax provision | 37 | 12 | ||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 1,354 | (1,582 | ) | |||||
Loss from discontinued operations, net of tax | (203 | ) | (115 | ) | ||||
NET INCOME (LOSS) | $ | 1,151 | $ | (1,697 | ) | |||
BASIC EARNINGS (LOSS) PER SHARE: | ||||||||
Continuing operations | $ | 0.09 | $ | (0.11 | ) | |||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Net income (loss) | $ | 0.08 | $ | (0.12 | ) | |||
BASIC SHARES OUTSTANDING | 14,533 | 14,366 | ||||||
DILUTED EARNINGS (LOSS) PER SHARE: | ||||||||
Continuing operations | $ | 0.09 | $ | (0.11 | ) | |||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Net income (loss) | $ | 0.08 | $ | (0.12 | ) | |||
DILUTED SHARES OUTSTANDING | 14,626 | 14,366 | ||||||
DIVIDENDS PER SHARE: | ||||||||
Common Stock | $ | - | $ | - | ||||
Class B Common Stock | $ | - | $ | - | ||||
THE DIXIE GROUP, INC.
Consolidated Condensed Balance Sheets
(in thousands)
March 28, | December 27, | |||||||
ASSETS | (Unaudited) |
| ||||||
CURRENT ASSETS |
|
| ||||||
Cash and cash equivalents | $ | 2,346 | $ | 3,204 | ||||
Receivables, net of allowances for expected credit losses of | 26,566 | 22,984 | ||||||
Receivables - tariffs refunds | 3,318 | - | ||||||
Inventory, net | 68,070 | 66,370 | ||||||
Prepaid and other current assets | 6,173 | 5,391 | ||||||
TOTAL CURRENT ASSETS | 106,473 | 97,949 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 28,059 | 29,154 | ||||||
OPERATING LEASES RIGHT-OF-USE ASSETS | 22,541 | 23,649 | ||||||
RESTRICTED CASH | 3,898 | 3,865 | ||||||
OTHER ASSETS | 17,270 | 19,488 | ||||||
LONG TERM ASSETS OF DISCONTINUED OPERATIONS | 1,002 | 1,053 | ||||||
TOTAL ASSETS | $ | 179,243 | $ | 175,158 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 26,118 | $ | 22,781 | ||||
Accrued expenses | 17,022 | 16,043 | ||||||
Current portion of long-term debt | 59,222 | 56,642 | ||||||
Current portion of operating lease liabilities | 4,781 | 4,553 | ||||||
Current liabilities of discontinued operations | 1,200 | 1,073 | ||||||
TOTAL CURRENT LIABILITIES | 108,343 | 101,092 | ||||||
LONG-TERM DEBT, NET | 24,610 | 25,096 | ||||||
OPERATING LEASE LIABILITIES | 18,963 | 20,200 | ||||||
OTHER LONG-TERM LIABILITIES | 14,070 | 16,651 | ||||||
LONG-TERM LIABILITIES OF DISCONTINUED OPERATIONS | 3,273 | 3,321 | ||||||
STOCKHOLDERS' EQUITY | 9,984 | 8,798 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 179,243 | $ | 175,158 | ||||
SOURCE: The Dixie Group
View the original press release on ACCESS Newswire