Despite challenges from changes in currency exchange rates that negatively impacted Dorel’s third quarter financial results, the company reported that its home furnishing division continued to see double-digit growth driven in part by a boost in online sales.
Third quarter revenue for Dorel Home Furnishings was up 13.5% to $165.5 million, the company said. Sales to brick and mortar stores were flat for the quarter while sales to online retailers continue to grow and represented more than 37% of total segment sales.
Third quarter operating profit was $10.1 million, an increase of 84.9%. All home furnishings segments posted improved results with DHP, Cosco Home & Office and the Altra import division of Ameriwood experiencing substantial growth, company officials said.
“The fact that the segment has maintained brick and mortar sales at current levels is an important achievement given today’s retail environment. This stability plus the exceptional progress in our online business is driving home furnishings success,” Dorel president and CEO Martin Schwartz said in announcing the financial results.
Company-wide for the third quarter ended September 30, Dorel Industries reported a net loss of $8.8 million, or $0.27 cents per diluted share, compared to a net income of $19.5 million, or $0.60 cents per diluted share, in the year-earlier period.
Adjusted net income was $15.5 million, or $0.48 per diluted share, compared to $23.8 million, or $0.73 per diluted share, in the comparable quarter in 2014.
The net negative impact of foreign exchange on third quarter 2015 operating profit was $12 million, the company stated, of which about $14 million was in the Juvenile and Sports segments offset by a net positive impact of $2 million in corporate expenses. After tax, this net negative impact on the diluted EPS for the third quarter was $0.28, the company said.
Total revenues for the third quarter were $679.3 million versus $673 million in the year-prior period.