On March 26, 2026, The Dixie Group, Inc. (OTCQB: DXYN) released its financial results for the fourth quarter and the fiscal year ended December 27, 2025. The company reported net sales of $63.5 million for Q4 2025, a decline of 1.4% compared to $64.3 million in Q4 2024. The net loss for the fourth quarter was $3 million, an improvement from a net loss of $7.2 million in the same quarter of the previous year. For the entire fiscal year 2025, net sales totaled $257.4 million, down 2.9% from $265 million in 2024. The net loss from continuing operations for the year was $7.3 million, or $0.50 per diluted share, compared to a net loss of $12.2 million, or $0.83 per diluted share, in 2024. The overall net loss for the year was $7.6 million, or $0.52 per diluted share, compared to a net loss of $13 million, or $0.88 per diluted share, in the prior year.

Daniel K. Frierson, Chairman and CEO, commented on the results, stating that the company faced a challenging economic environment but managed to improve gross profit margins and financial results through strategic initiatives. Despite ongoing softness in residential demand and the impact of tariffs, the company implemented price increases to mitigate financial impacts. The gross margin for FY 2025 was 27.0%, up from 24.7% in FY 2024. Selling and administrative expenses decreased to $67.7 million from $69.9 million in the previous year, primarily due to lower spending on samples. The company is optimistic about its profit improvement plan for 2026, which aims for $13 million in year-over-year improvements through various cost reductions and price increases. However, the overall outlook remains cautious due to low consumer confidence and housing market challenges.

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