The Dixie Group reported a net sales for fiscal year ended December 31, 2022, of $304 million, or 11% below the net sales of $341 million in the fiscal year of 2021. The net loss for the fiscal year end 2022 was $35.1 million with a $33.4 million loss from continuing operations.
Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said:
"Our fiscal year of 2022 was severely impacted by several negative factors specific to our company and a general downturn that impacted our industry as a whole throughout most of the year.
Beginning in the mid second quarter of 2022, the flooring industry started to see a decrease in demand that persisted through the remainder of the year. High inflation and rising interest rates negatively impacted consumer confidence and lowered discretionary spending. Home sales and residential remodeling both declined in the second half of the year.
Our net sales in 2022 also reflected the year-over-year loss of approximately $23 million in sales with our largest mass merchant retail customer. Our sales with this customer ended in the first quarter of 2022 as the result of their change in strategy to focus on lower price point products. We also experienced supply chain problems and issues with our sample vendors which created delays in our new product introductions in 2022, particularly within our new decorative line and our hard-surface products. We incurred the cost of introducing these products in 2022 but, due to the products being release late in the year, we had little to no sales activity to offset these costs."
Despite soft market conditions, the company reported it launched its new decorative segment programs, 1866 by Masland and Décor by Fabrica, in the fourth quarter, which included 30 new styles. "We are seeing strong placement of product with our customers and order entry momentum continues to build," Frierson said.
In the nylon segment, the company launched the remaining new soft surface EnVision Nylon carpet introductions into the market in the fourth quarter of 2022. In the Trucor line of luxury vinyl flooring, the company launched Trucor Boardwalk, a collection of 12 SPC SKUs featuring lighter, coastal colors and a pillowed edge for a realistic wood visual. This collection is 6.5mm thick for long lasting durability and easy installation.
In 2023, the company reports it will launch a broad mix of new products, including new price point items in soft and hard surfaces, and high-end carpet styles in the nylon and decorative segments.
