MONTREAL (BRAIN)—Specialty brands led the way to a 21.6 percent third quarter sales increase in Dorel Industries’ bike division, according to figures released by the company Thursday.
Although typically a slow quarter for bike purchases, Cannondale sales remained robust, said Martin Schwartz, CEO of Dorel Industries. Revenue in Dorel’s recreational/leisure segment, which includes all its bike brands, reached $209.8 million, up from $172.5 million for the same quarter last year. Year to date sales were $659.4, a 15.9 percent increase from 2010’s $569 million.
IBD brands led the gains, but mass-market brands Pacific Cycle and Schwinn also posted higher POS levels, Schwartz said.
The strength of the U.S. dollar at the end of the quarter, which ended Sept. 30, reduced margins by $2 million. The segment was also impacted by a $2.5 million earnings decline in its apparel and footwear division, which includes Sugoi.
Dorel expects to see continued success in its bike division with fourth quarter shipments on track; additional marketing dollars in place to promote Mongoose; a spring campaign at a major retailer directed at Iron Horse, a brand that’s been largely out of stores since Dorel bought it out of bankruptcy in mid-2009; and positive pre-holiday sales helped by Wal-Mart’s reinstatement of its layover program.