The Dixie Group, Inc. (NASDAQ:DXYN) shares are trading higher on Friday.
The company reported fourth-quarter earnings per share from continuing operations of 22 cents, significantly higher than the year-ago loss of $1.19 in the year-ago period.
Quarterly revenue of $66.67 million is significantly lower than $70.53 million in the year-ago quarter.
The net income for the fourth quarter of 2023 was $3.16 million, with an income of $3.43 million from continuing operations. This compares to a loss of $(18.46) million in the fourth quarter of 2022, with a loss of $(17.68) million from continuing operations.
"The lower net sales amount was the result of a slowdown in the floorcovering industry driven by high interest rates which have dramatically impacted the housing and residential remodeling markets," Daniel K. Frierson, Chairman and Chief Executive Officer, said.
"We believe the overall flooring industry experienced a significantly higher reduction in year over year sales volume, indicating we are continuing to gain market share in our core markets," Frierson added.
As part of the 2024 cost improvement initiatives, the company is planning to start operations on extrusion of nylon in the first quarter of 2024.
This action will moderate the impact of any disruptions of raw materials in the future and lower our costs, Dixie Group said. The company also has new product launches planned in each product segment.
Price Action: DXYN shares are trading higher by 13% to $0.61 on the last check Friday.