MONTREAL – Dorel Industries Inc.’s sports and home divisions got a boost from COVID-19 lockdowns during the second quarter. The strong showing of those two divisions more than offset losses sustained by Dorel’s juvenile segment.
Dorel Home, buoyed by strong online sales during the onset of the coronavirus lockdown, posted its best quarter ever in terms of both record revenue and adjusted operating profit. Q2 revenue soared 25.7% to US$260.7 million. The company aid e-commerce sales represented 68% of total gross sales compared to 60% in the prior year.
Capitalizing on a spike in demand for all types of bicycles, Dorel Sports achieved its fifth consecutive quarter of growth with record profitability. Q2 revenue was US$285.6 million, up US$44.6 million, or 18.5%, from last year.
Dorel Juvenile sustained a Q2 operating loss of US$1.2 million compared to a profit of US$2.4 million last year. Q2 revenue declined US$43.9 million or 19.8% to US$177.6 million. The company said that aside from the United States, where major retailers remained opened throughout the pandemic, most markets were negatively impacted by retail store closures.
“Dorel’s overall revenues have recovered sharply from the initial negative effects of COVID-19 with strong performances in two of our three segments,” said Dorel President and CEO Martin Schwartz. “Dorel Sports and Dorel Home benefitted from increased demand for its products as consumers sought bicycles and home furnishing products during the prolonged lockdown periods. Increased sales of in-stock items allowed both segments to reduce inventory to record low levels. Dorel Juvenile remained challenged through the first half of the quarter, hurt by continuing store closures in many of its markets, a situation which began reversing as more stores reopened during the latter part of the period.”
Dorel ranks 16 in the 2020 FDMC 300.
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