MONTREAL (BRAIN)—Sales in Dorel Industries’ bike division rose 13.7 percent in 2010 boosted by the successful relaunch of the Schwinn brand, as well as double-digit growth in the IBD channel in the U.S. and Europe, according to a year-end earnings report released by the company on Thursday.
Dorel owns Cannondale, GT, Mongoose, Schwinn, Iron Horse, Pacific Cycle, PTI and Sugoi.
Sales in the bike segment rose to $775 million last year compared with $681.4 million in 2009. Organic sales growth was 11 percent.
All divisions contributed to the increase, except for the Apparel and Footwear Group, which was flat. In the mass market, the company’s $5 million investment into a new Schwinn advertising campaign paid off with single digit sales growth. Sales to large customers in Canada were up more than 25 percent from 2009, and have more than doubled since 2008. Cycling Sports Group sales to IBD customers increased by more than 20 percent in the U.S. and Europe last year.
The bike division ended the year strong with a 17.2 percent, or $30.2 million, revenue increase in the fourth quarter. Organic sales were up almost 19 percent. Sales increased by almost 20 percent in the mass-market category led by the Schwinn campaign, which was renewed for the holiday shopping season. Sales to IBD customers grew 20 percent.
The Apparel Footwear Group dragged the segment’s earnings in the fourth quarter, decreasing $2 million due to late product deliveries, delays getting the supply chain running properly and management changes at the group’s new facility in Vancouver, B.C.
Going into 2011, the company has renewed its focus on this business and expects to see an improvement in earnings.