Strong Rebound in September Sales
Despite a slow start due to high interest rates and housing prices, sales rebounded strongly in September, with the average weekly order entry rate for the first month of the fourth quarter 12% above the average weekly order entry rate in the third quarter.
Gross Margin Improvement
Gross margins were slightly favorable compared to the prior year at 24.8% of net sales compared to 24.6% in the third quarter of 2024. Year-to-date margins were also favorable at 27% compared to 25.7% the previous year.
Cost Reductions and Debt Reduction
Significant cost reductions of nearly $60 million over three years, with an additional $10 million profit improvement plan in place. Net debt has been reduced by over $12 million in the last year.
High-End Market and Product Growth
The DuraSilk, SD collection showed strong growth, gaining share in the polyester market. High-end carpet segment had positive growth, and the hard surface segment's fabric of wood sales increased by over 17% year-over-year.
Settlement Progress on Legal Issues
Entered into a memorandum of understanding to settle two PFAS-related lawsuits and obtained an agreement to be dismissed from a third, with estimated liability recorded.