MONTREAL (BRAIN)—Strong sales in Europe among Dorel Industry’s specialty brands drove nearly 16 percent growth in the company’s cycling segment in the second quarter of the year, according to an earnings report released on Tuesday.
Revenue was up from $214.8 million in 2010 to $249 million for the months of April through June this year, an increase of 15.9 percent. For the first six months of the year, the cycling division grew 13.4 percent, from $396.6 million to $449.5 million.
The IBD channel, which includes Cannondale, GT, Schwinn, Mongoose and Sugoi, saw gains in its company-owned divisions in U.S., Europe, Japan and Australia with Europe reporting sales increase of more than 50 percent. There was also strong growth through international distributors in Latin America and Europe.
“The demand for Cannondale is very strong and GT, Schwinn and Mongoose continue to make important gains in key North American and European IBD markets. Growth is coming both from existing dealers and from new distribution for all brands through a combination of additional dealers and cross-selling at existing dealers,” the company said in a press release.
After a slow start due to a wet spring and retailers closely controlling inventories, second quarter Pacific Cycle sales to the mass merchant distribution channel improved slightly over last year. POS levels have increased since the weather finally broke in early June. Bolstered by an aggressive advertising and marketing campaign which has increased Schwinn’s brand awareness, Pacific Cycle is increasing its market share in the adult category. Schwinn is outperforming the competition and has made gains over last year’s second quarter.