Dixie Group Q2 sales flat, profit margin edges up - DXYN News | RalliesDixie Group Q2 sales flat, profit margin edges up
D
DXYN• Outlook
- Company expects Profit Improvement Plan to contribute $17 mln in annual cost reductions and profit
- Company sees continued softness in home resale and remodeling environment impacting market conditions
- Dixie Group plans additional product launches in soft and hard surface segments during the third quarter
Overview
- U.S. flooring maker's Q2 net sales were flat yr/yr amid challenging market conditions
- Q2 net income and diluted EPS from continuing operations declined slightly yr/yr
- Gross profit margin improved to 29.5% from 29.2% on cost reductions and favorable pricing
Key details
| Metric | Actual |
|---|
| Q2 Sales | $68.61 mln |
| Q2 EPS | $0.07 |
| Q2 Net Income | $1.09 mln |
| Q2 EBIT | $3.09 mln |
| Q2 Gross Profit | $20.23 mln |
Result drivers
- Cost reductions - Co said improved gross margins were driven by cost reductions and favorable pricing as part of its Profit Improvement Plan
- - Co reported strong activity in higher end segments such as decorative product lines and Fabrica wood program
Higher-end product strength
Product launches - Co introduced 14 new carpet styles in Q2, focusing on high-end nylon and polyester products•
