DXYN News & Events

Reports revenue $63.5M vs. $64.4M last year. Daniel Frierson, CEO, said, "In 2025, we continued to navigate through a challenging economic environment while staying focused on strategic internal initiatives. Our focus on higher-end flooring markets, operational efficiency and disciplined cost management enabled us to improve year over year gross profit margins and financial results despite ongoing softness in residential demand. We were forced to manage the unexpected implementation of "Liberation Day" tariffs and other tariff measures throughout much of 2025. We implemented price increases in order to mitigate the financial impact of the tariffs, however, the difference in timing of the tariffs and the price increases resulted in a negative financial impact on the year of approximately $1.4M. Our total payment of IEPPA tariffs through March of 2026 was approximately $3.3M. As we closed out 2025 we implemented key drivers as part of a profit improvement plan for 2026 totaling $13M in year over year improvements. These improvements range from price increases to reductions in selling expenses and administrative costs. Throughout 2025 our sales and marketing strategy focused on our strengths in design and color through our Step into Color campaign. Through this initiative we have showcased colors in our standard palette that stands out from our competitors. We also launched an updated custom color program giving our retail and designer partners the ability to custom color any of our white dyeable nylon products. We are building on this momentum in 2026 through several key growth initiatives with our larger retail accounts and buying groups. Our soft surface sales for both the fourth quarter and the year were down less than 1% from the year ago periods. We believe the industry was down approximately 4% for the quarter and approximately 5% on the year, both in comparison to the same prior year periods. Consequently, we continued to gain market share in the carpet market during this difficult period. So far in 2026, our sales pattern is similar to the prior year with sales of soft surfaces down slightly but performing better than our hard surface products. Despite recent reductions in interest rates, market conditions remain uncertain as the overall flooring industry continues to be negatively impacted by low existing home sales, delayed remodeling projects due to low consumer confidence and limited housing availability. Historically, such prolonged periods of decline in the flooring markets have been followed by several periods of strong growth driven by pent up consumer demand. We believe the actions we have taken position us well for long-term growth and value creation."

Reports Q3 revenue $62.4M vs. $64.9M last year. Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "Third quarter sales got off to a slow start as a result of headwinds in the housing markets tied to high interest rates and high housing prices. Despite a slow start to the quarter, we saw a strong rebound in sales for September giving us momentum as we entered the fourth quarter. The average weekly order entry rate for the first month of the fourth quarter was 12% above the average weekly order entry rate in the third quarter and close to last year's level for the same period. Looking ahead to the 2026 fiscal year, we are focused on a profit improvement plan consisting of year over year cost reductions and operational efficiencies in excess of $10 million. The vast majority of these profit improvement initiatives have already been implemented. This includes price increases announced during the third quarter to offset the costs of tariffs, freight and other production-related cost increases we have experienced."

Reports Q2 revenue $68.5M vs. $70.5M last year. Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "The Company had a net income of $1.2 million in the second quarter. Despite lower year over year sales volume, we were able to produce stronger operating margins at 29.2% of net sales compared to 28.1% in the same quarter of the prior year. We also reduced our year over year selling and administrative expenses. These favorable results in 2025 are primarily the result of our cost reduction plan which is currently estimated to produce $12.6 million in reduced spending year over year. Weak market conditions continued to negatively impact flooring industry sales in the second quarter of 2025, with high interest rates and low consumer confidence being key factors leading to slow home sales and weak home remodeling numbers. Our soft surface sales outpaced the market in the second quarter as we were relatively flat year over year where the industry, we believe, was down 7%. A key growth segment in our soft surface products was our DuraSilk(TM) SD collection, which continues to gain share of the polyester market. Also, continued growth of our high-end decorative segment resulted in one of our strongest quarters for the sales of our decorative products."

Reports Q1 revenue $62.9M vs. $65.3M last year. Commenting on the results, Daniel K. Frierson, Chairman and Chief Executive Officer, said, "The industry continues to experience weak market conditions driven by low existing home sales and lower consumer confidence. Our first quarter net sales were down 3.5% from the same period a year ago. Sales of our soft floorcovering products again outperformed our hard surface products and we continued to gain market share in the soft surface category. Just as in the previous quarter, premium products performed better than the market in all categories."