The Dixie Group Reports Operating Income for First Quarter of 2023
Highlights from the First Quarter2023:Gross profit margin for the first quarter of 2023 was 26.6% of net sales compared to 19.6% in the first quarter of 2022.Operating income in the first quarter of 2023 was $306 thousand compared to an operating loss of $2.2 million in the first quarter of 2022. The operating income in the current quarter included $1.1 million in expenses related to facility ...
Highlights from the First Quarter2023:
- Gross profit margin for the first quarter of 2023 was 26.6% of net sales compared to 19.6% in the first quarter of 2022.
- Operating income in the first quarter of 2023 was
$306 thousandcompared to an operating loss of $2.2 millionin the first quarter of 2022. The operating income in the current quarter included $1.1 millionin expenses related to facility consolidations.
Commenting on the results,
During the first quarter, we celebrated the 20th anniversary of
In our higher-end brands, we launched 21 new styles to kick off the second-year plan of our decorative segment. This includes eight new styles in Décor by Fabrica, seven in 1866 by Masland, and six in our new 1866 All Seasons Collection. We have an additional 21 new decorative styles to be launched during the second and third quarter this year. In our traditional soft surface categories for Masland and Fabrica, we continued our development of the EnVision® Nylon and EnVisionSD® Pet Solutions product lines, with two new styles in the first quarter and seven additional styles to be launched in the coming months.
In our hard surface segment, we expanded our distribution of key collections, which were launched into the market late last year. This includes our
As we look forward to the second quarter and the remainder of the year, we are relieved to be past many of the challenges we faced in 2022, but we continue to stay focused on our cost reduction plans, improvements to our operations and the introduction of industry leading products in 2023," Frierson concluded.
The gross profit in the first quarter of 2023 was 26.6% of net sales compared to 19.6% of net sales in the first quarter of 2022. Our 2022 gross margin was negatively impacted by exorbitantly high pricing from our former primary raw material provider driven by their decision to exit the business. In 2023 we have diversified our raw material suppliers at lower comparative costs. Our cost of goods sold also reflected favorable operating results from our manufacturing operations primarily attributable to our east coast plant consolidations. Selling and administrative costs in the first quarter 2023 were lower in expense dollars than prior year but higher as a percent of the lower net sales, 24.5% of net sales in 2023 compared to 22.4% in the same quarter of 2022.
On our balance sheet, receivables increased
In the first few weeks of the second quarter in 2023, we have seen order entry increase to 14% above first quarter levels. We anticipate a stronger sales level in the second quarter with typical seasonality and many of our new products hitting retail floors.
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
Consolidated Condensed Statements of Operations
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