Dorel Industries’ third quarter performance was bolstered by its home operation, and the company continued to grow its online retail sales.
For the third quarter ended September 30, Dorel posted net income of $13.3 million, or 41 cents per diluted share, versus $15.9 million, or 49 cents per diluted share, in the year-prior period. Adjusted net income was $14.5 million, or 44 cents per diluted share, versus $20.6 million, or 63 cents per diluted share, in the year-previous quarter.
Third quarter revenue was $642.6 million, down 4.3% from the year-earlier period. Operating profit was $24.6 million and adjusted operating profit was $26.2 million versus $29.6 million and $35.9 million respectively in the 2016 period.
In the quarter, Dorel Home revenue rose 1.3%, to $201.4 million versus the period a year before. Increased sales in all divisions through online retail drove results, the company said. Online sales represented 51% of total segment revenue compared to 44% for the comparable period in 2016. Brick and mortar sales slipped due mainly to the planned reduced exposure to a major mass merchant customer, noted Dorel. Third quarter home division operating profit gained 14.1%, to $20.5 million, driven by improved margins from increased online sales, higher sales volumes and an overall net decrease in operating expenses.
“We are pleased with the third quarter progress at Dorel Home and Dorel Juvenile,” said Martin Schwartz, the Dorel president and CEO. “Dorel Home’s positive revenue and earnings trend was maintained as online sales exceeded $100 million for the quarter, again accounting for more than 50% of the segment’s total revenue. The segment’s focus on improving speed and efficiency of distribution continue to drive sales with major online retailers.”