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Dorel adjusts financial results due to Toys "R" Us liquidation

Published March 23, 2018

MONTRÉAL (BRAIN) — The liquidation of Toys "R" Us has forced Dorel Industries to issue a new audited financial report, now showing a charge of $3.8 million due to the toy store chain's closure. $3.1 million of the charge is from Dorel Sports, which includes bicycle sales. The rest is from Dorel's juvenile segment.

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The charge is Dorel's best estimate of potential losses arising from non-payment from the chain; the actual loss may be different.  

Dorel recorded sales of $13.4 million to Toys "R" Us in its first quarter this year. As of Wednesday, Dorel had accounts receivable from Toys "R" Us of $17.2 million, including $2.8 million from Dorel Home, $5.2 million from Dorel Juvenile and $9.2 million within Dorel Sports.

As a result Dorel revised its financial results for the fourth quarter and year that ended Dec. 30, to reduce its net income for the quarter and the year by $3.1 million.

In 2017, Toys "R" Us accounted for approximately 3 percent of Dorel’s total revenue.

Topics associated with this article: Earnings/Financial Reports

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