Company Summary: The Dixie Group, Inc.

Business Overview

• Industry: Floorcovering manufacturing and marketing
• Main Focus: High-end residential carpet, rugs, luxury vinyl flooring (LVF), and engineered wood
• Primary Markets: Upper-end residential segment via strong brands and customer relationships

Key Brands

• Fabrica: Luxurious residential carpets, custom rugs, engineered wood; priced approximately 5x industry average; targets interior decorators, luxury builders, yacht and motor coach manufacturers
• Masland: Designed for high-end residential markets; offers specialty carpets, rugs, and LVF; priced over 3x industry average; sold through interior designers and specialty retailers
• DH Floors: Offers stylish, affordable luxury carpets and rugs for moderate high-end residential market; priced about 2x industry average
• TRUCOR™: Rigid vinyl flooring mimicking hardwood/stone; waterproof core, durable for residential and commercial use; features waterproof, stain, and scratch resistance, cushioned feel, and sound insulating IXPE pad

Industry Context

• Market Size (2023): $34.1 billion in U.S. total sales, down 7.4% from 2022
• Main Sales Categories (2023):
  • Carpets & Rugs: 33% of dollar sales; 39% of square footage
  • LVF (Luxury Vinyl Flooring): 28% of dollar sales; 31% of square footage
  • Others: Wood, ceramic, stone, vinyl, laminate

Product Offerings

• Soft floorcoverings: broadloom carpets, rugs, custom-designed carpets
• Hard surface flooring: LVF, engineered wood, stone, ceramic tiles
• Industries Served: Residential & commercial construction, remodeling, auto, RV, small boats

Customer Base & Sales

• Customer Concentration: No single customer exceeds 10% of net sales
  • 2024: Top 10 customers account for approximately 7%
  • 2024: Top 20 customers for approximately 10%
• Employees: 951 as of December 28, 2024
• Revenue for Fiscal Year 2024: $265.0 million (down 4.1% from 2023)
• Net Loss in 2024: $13.0 million, or $0.88 per share (including discontinued operations)
• Income (2023): Loss of $2.7 million, or $0.18 per share

Business Operations

• Facilities:
  • Total of approximately 2.8 million square feet
  • Locations primarily in Dalton, GA; Calhoun, GA; Saraland, AL; Atmore, AL; Roanoke, AL; Santa Ana, CA; Porterville, CA; Adairsville, GA; Chatsworth, GA
  • Mostly owned properties with some leased, including a distribution center and manufacturing sites
• Market Position: Strong brands, design innovation, longstanding supplier relationships, focus on high-end market segments

Additional Details

• Sales Seasonality: Highest in Q2 (~26%), lowest in Q1 (~24%)
• Raw Materials: Mainly nylon, wool, polyester yarns; raw material costs influenced by petroleum prices
• Raw Material Suppliers: Primarily domestic for yarn; overseas for LVF and some wood products
• Trade & Regulatory: Risks related to tariffs, trade policies, foreign regulations for sourcing; environmental and safety regulations apply
• Cybersecurity: Ongoing risk management; no material incidents in 2024
• Legal & Litigation: Several environmental-related lawsuits in Georgia around PFAS chemicals; denying liability and vigorously defending

Summary

The Dixie Group, Inc. specializes in manufacturing and marketing high-end residential flooring products, especially luxury carpets, rugs, and durable hard surfaces like LVF and engineered wood. It owns well-regarded brands (Fabrica, Masland, DH Floors, TRUCOR™), serving exclusive customer segments through designer, retail, builder, and specialty channels. The company has approximately 951 employees, generated $265 million in revenue in 2024, and reported a net loss of $13 million. It operates facilities across several U.S. locations, primarily in Georgia, Alabama, and California, with a focus on design innovation, product differentiation, and serving the upper-end residential market.