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Dorel Q2 Sales Down, But Home Remains Robust

Strong sales growth in Dorel Industries’ home division could not offset weaknesses in other segments during the second quarter.

For the three months ended June 30, companywide sales were $611.3 million, down 4.1% from the comparable quarter the previous year. Reported net income was $11.4 million or $0.35 per diluted share, compared to a net loss of $38.6 million or $1.19 per diluted share in the second quarter of 2016. 

Revenue for the six months was $1.26 billion, a decrease of 2% compared to $1.28 billion last year. Reported net income for the period was $20.3 million or $0.62 per diluted share, compared to a reported net loss of $21.9 million or $0.68 per diluted share in the first half a year ago.

In the company’s home division, second quarter revenue was up 7.1% to $184.2 million. The growth was driven by sales increases to online retailers, which for the quarter accounted for 53% of total sales in the division. In the second quarter of 2016, online sales accounted for 43% of total sales in the home division.

For the first six months, revenue grew $28.9 million, or 8%, to $388.2 million from $359.3 million in 2016. Online sales for the first half of the year in home accounted for 49% of total division sales.