DXYN — DIXIE GROUP INC SEC Filings

What Changed

Risk factors · Apr 8, 2025 → Mar 26, 2026

15 added · 2 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.

Newly disclosed

Since 2016, the Company has been named as a defendant in multiple lawsuits filed by various individual plaintiffs against chemical manufacturers, distributors, and several other carpet manufacturers and finishers in connection with the past use of surfactants containing or alleged to contain chemicals associated with PFAS and PFOS.
The management time spent on such matters and the distraction caused by such litigation has been and is likely to be significant.
Such regulatory focus may result in governmental litigation related to use of such chemicals.
We are currently analyzing strategies that can be taken to moderate or minimize the effects of these trade actions, including evaluating the country of origin for sourcing product into the U.S., negotiating with suppliers and raising prices.
Given the uncertainty regarding scope and duration of the current and potential tariffs, as well as the potential for additional trade actions by the U.S. or other countries, the specific impact to our business, results of operations, cash flows and financial condition is uncertain but could be material.
The recent enactment of tariffs by the U.S. government, along with the unpredictability of such rates, pose a significant risk to our business operations and may materially increase our costs and reduce our margins.
To date, the Company has managed the defense and settlement of lawsuits related to the alleged past use of PFOA, PFOS and related chemicals by expenditure of amounts deemed not to be material.
Accordingly, there can be no assurance that costs related to defending such lawsuits will not be material in the future and will not have a material adverse impact upon the Company.
Additional tariffs on product imported to the U.S., retaliatory trade actions taken by other countries and resulting trade wars may have a material adverse impact on our business.
However, there can be no assurance that these measures will be successful, or that they will offset the negative impact of the tariffs on our business.
We are actively monitoring the impact of any tariffs that become effective, as well as potential retaliatory tariffs imposed by other countries.
Additionally, and as noted above, there Table of Contents 10 is an increased regulatory focus on the use and past use of such chemicals.

No longer disclosed

The long-term economic impact and near-term financial impacts of the COVID-19 pandemic or other pandemics, including but not limited to, potential near term or long-term risk of asset impairment, restructuring, and other charges, cannot be reliably quantified or estimated at this time due to the uncertainty of future developments.
These issues may also materially affect our current and future access to sources of liquidity, particularly our cash flows from operations, and access to financing.

DIXIE GROUP INC

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