Dixie Group Inc-The Reports Strong Financial Performance in Q2 2025

DALTON, GA — August 7, 2025 — The Dixie Group, Inc. (OTCQB:DXYN), a leading American manufacturer and distributor of luxury soft floor covering carpets and rugs, has announced its financial results for the second quarter of 2025. The company, which operates in the Consumer Discretionary sector under the Household Durables industry, has demonstrated a robust financial performance, marking a significant improvement over the same period last year.

For the quarter ended June 28, 2025, Dixie Group reported a gross profit margin of 29.2% of net sales, an increase from 28.1% in the second quarter of 2024. This improvement in gross profit margin underscores the company’s effective cost management and pricing strategies in a competitive market. Operating income for the quarter reached $3.2 million, up from $2.3 million in the prior year, reflecting the company’s operational efficiency and strategic initiatives aimed at enhancing profitability.

Net income for the second quarter of 2025 was $1.2 million, doubling the $0.6 million reported in the same period of the previous year. This significant increase in net income highlights Dixie Group’s successful efforts in driving growth and improving its bottom line. Net sales for the quarter were reported at $68,573,000, a slight decrease from $70,507,000 in the second quarter of 2024. Despite the dip in sales, the company managed to achieve a higher operating income and net income, indicating improved operational efficiency.

The net income from continuing operations for the second quarter of 2025 was $1,254,000, or $0.08 per diluted share, compared to $667,000, or $0.04 per diluted share, in the second quarter of 2024. This improvement in earnings per share is a positive signal to investors, reflecting the company’s ability to generate value.

Looking at the first half of 2025, net sales were $131,563,000, which is 3.1% below the net sales for the six-month period ended June 29, 2024, at $135,761,000. Despite the slight decline in sales, the operating income for the first six months of 2025 was $3.2 million, compared to $1.437 million in the same period of the previous year. This substantial increase in operating income further demonstrates Dixie Group’s operational improvements and strategic focus on profitability.

As of August 6, 2025, Dixie Group’s close price stood at $0.5, with a market capitalization of $7,140,000. The company’s 52-week high was $1.05 on October 27, 2024, and its 52-week low was $0.38 on April 10, 2025. The price-to-earnings ratio was reported at -0.605, reflecting the company’s current financial performance and market valuation.

Dixie Group’s financial results for the second quarter of 2025 indicate a positive trajectory, with improved profitability and operational efficiency. The company’s strategic initiatives and focus on cost management have paid off, positioning it well for future growth in the luxury soft floor covering market. Investors and stakeholders can look forward to continued progress as Dixie Group leverages its strengths to capitalize on market opportunities.

For more information about Dixie Group Inc-The and its offerings, visit their website at www.thedixiegroup.com .