Daily News

From Home Furnishing Business

Dorel Q2 Sales Down 5.2%

August 14, 2013  by in Financial Reports, Industry   

Net income was $13.2 million for the three months ended June 30, a decrease of 56.4 percent from the $30.3 million reported for the second quarter a year ago. Year-to-date revenue of $1.2 billion was off from $1.25 billion last year. Net income for the first six months of 2013 was $35.5 million, compared with $59.4 million for last year's first half.

“As we announced in June, second quarter earnings in the Recreational/Leisure segment continued to be affected by the late spring across the U.S., Canada and Europe," said Toronto-based Dorel President and CEO Martin Schwartz . "The resultant global slowdown in the bicycle category lowered sales in just about all markets, creating higher bicycle inventories and industry-wide discounting, particularly in the independent bicycle dealer channel. This discounting, combined with foreign exchange losses and one-time severance costs significantly affected the segment’s second quarter profits.”

Schwartz said Dorel's juvenile furniture performance was down year-over-year due mainly to reduced profitability in Europe, where economic conditions remain difficult and are pressuring earnings.

"New product development remains a key focus and innovative new introductions are planned for later this year," he said. "Dorel Chile
continued to post strong top and bottom line numbers. While there was a slight decline in Home Furnishings’ sales to the in-store channel, the segment had another solid quarter registering improved earnings, as sales to its e-commerce customers continue to grow significantly.”

Click here for the complete Dorel quarterly performance press release.