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Dorel Sports revenue up 19% in Q2

Published August 11, 2020
The parent of Cannondale, GT, Schwinn, and other brands notched its fifth consecutive quarter of growth.

MONTRÉAL (BRAIN) — Dorel Sports, a division of Dorel Industries, is reporting sales of $285.6 million in its second fiscal quarter, up 18.5% from the same quarter last year. Dorel Sports is the parent of the Cycling Sports Group (Cannondale, GT, Fabric, Guru, and Charge), and Pacific Cycle (Mongoose, Schwinn, and Kidtrax), and Caloi.

"Clearly we could have sold more bikes had we had them," said Dorel's president & CEO, Martin Schwartz in a conference call with investors Tuesday.

In a press release earlier Tuesday, Schwartz said, "There was a spike in demand for all types of bicycles, which rose dramatically and was maintained throughout the quarter as consumers sought a healthy escape from weeks of COVID-19 lockdowns. Online sales were particularly strong with purchasing activities shifting to e-commerce at the height of the pandemic. Sales were limited by a lack of supply of certain models despite Asian suppliers re-opening in February."

Operating profit for the Sports division was $26.8 million compared to $10.1 million last year. 

"Clearly we could have sold more bikes had we had them" — CEO Martin Schwartz.

The company said that while CSG and Pacific sales and profits were up, its Caloi brand, sold in Brazil, recorded an operating loss due to retail and factory closures in that country. It said its on-hand bike inventory "dropped considerably."

The company said it expected bike sales outside Brazil to remain strong through Q3 but "the current volatility in the bicycle industry" makes forecasting beyond this quarter more difficult.

Dorel Industries' Home segment also had a strong second quarter, with revenue up 25.7% and operating income up 32.2%.  Dorel Industries' third segment, Dorel Juvenile, had a difficult quarter, however, due to retail store closures. Revenue in that segment was down 20% and it recorded an operating loss of $1.2 million.

Overall Dorel Industries revenues were up 8.1% in the second quarter, to $724 million and first-half revenues were flat at $1.3 billion. 

Topics associated with this article: Earnings/Financial Reports

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