Dorel’s net income rose in its first quarter, propelled in part by the company’s home furnishings division and its growth in e-commerce sales.
For the first quarter ended March 31, Dorel Industries posted net income of $16.7 million, or 51 cents per diluted share, versus $11.6 million, or 36 cents per diluted share, in the year prior period. Adjusted net income for the quarter was up to $19.7 million, or 60 cents per diluted share, the company reported, versus $11.8 million, or 36 cents per diluted share, in the 2015 quarter.
Total revenue for the company was $645.9 million, down 2.9% from $665.5 million in the quarter a year earlier. Operating profit was $30.9 million versus $33.8 million in the 2015 period.
Dorel’s home furnishings segment revenue increased 8.8% to $176.1 million in the first quarter, compared with $161.8 million a year ago. The growth was driven by sales gains to online retailers, the company said. Dorel noted that the e-commerce distribution channel represented 42% of total segment sales versus 30% in last-year’s period. Operating profit increased to $16.5 million from $9.6 million in the year-previous quarter.
“We are pleased with the positive start to the year. Dorel Home Furnishings delivered another record quarter and has evolved into a growth company with opportunity for further expansion with its online customers. Newly introduced Dorel juvenile products are resonating well with consumers and improved pricing has resulted in better gross margins in the majority of our markets,” said Martin Schwartz, Dorel president and CEO.