The Dixie Group said it continues to focus on new product launches and cost-saving initiatives to navigate the challenging housing and home remodeling market. 

The company reported second-quarter net sales of $70.5 million for the period ended June 29, 2024, compared to $74.0 million in the same period of 2023.

Gross profit margin improved to 28.1% in second quarter 2024 from 26.7% in second quarter 2023, driven by manufacturing efficiencies, higher volumes, and cost savings from a new extrusion line.

Operating income increased to $2.3 million in second quarter of 2024 from $0.3 million in the second quarter of 2023, and the company reported net income from continuing operations of $0.7 million compared to a net loss of $1.6 million in the prior year quarter.

The company completed a 10-year sublease agreement for its Saraland, Alabama, facility, which will generate approximately $1.8 million in annual other income.

While sales in the first six months of 2024 declined 3.8% year-over-year, the company reported progress in reducing costs and improving profitability.

Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "High interest rates affecting the housing and home remodeling market and the impact on the economy from continued inflation continue to negatively impact our overall sales volume. Net sales from soft surfaces during the quarter were less than 1% below prior year while the industry, we believe, was down approximately 5.4%.We saw favorable margins in the second quarter as a result of the consolidation of our manufacturing operations on the East Coast and other cost savings initiatives, including the start of operations on our new extrusion line. The successful start-up of our extrusion line provides us with raw materials at lower costs, as compared to our current external purchasing, and also provides a continuity of supply, protecting us and our customers from potential supply disruptions."

During the quarter, the company launched its Step Into Color campaign with in-store marketing materials and a digital presence. This campaign provides retail customers, designers, and consumers with color options, including custom options, for piece-dyed nylon across all brands. In addition, the company launched 18 new carpet styles in the second quarter, six new DuraSilk SD polyester styles in the DH Floors line, and 11 new decorative styles in the 1866 and Décor lines. Also, the company added six new collections with 38 SKUs to its hard surface program, including SPC Tile, high-end WPC, and high-end engineered wood.