Dorel Industries reported revenues at Dorel Sports reached $305.6 million in the third quarter, an increase of 22.1 percent year-over-year.
Excluding the impact of foreign exchange rates, year-over-year organic revenue improved approximately 23.8 percent. Figures are in U.S. dollars.
Dorel Sports brands include Cannondale, Schwinn, GT, Mongoose, Caloi, and IronHorse.
Dorel Industries noted that this is the sixth consecutive quarter of revenue growth for the segment. The continuing record demand for bikes throughout the summer drove another quarter of substantial growth at the Cycling Sports Group (CSG) and Pacific Cycle divisions.
Calois revenue increased in local currency as IBD sales increased and mass-market stores began re-opening following COVID-19 shutdowns. Nine-month revenue was $779.4 million, up $103.6 million, or 15.3 percent.
Operating profit for the quarter was $24.2 million, compared to $6.0 million a year ago, with the improvement at both the CSG and Pacific Cycle divisions. Operating margins were strong, helped by the lack of discounting and the curtailment of events and marketing which lowered related expenses.
Calois operating profit rose year-over-year and reversed an operating loss from this year’s second quarter. Excluding restructuring costs, adjusted operating profit set a record at $27.8 million, up $22.2 million, or 395.5 percent. Nine-month operating profit was $50.4 million, compared to $20.6 million in 2019. Adjusted operating profit was $54.4 million, an increase of $34.2 million, or 169.2 percent.
Companywide, third-quarter revenue was $753.4 million, up 9.9 percent, from $685.7 million last year. Reported net income was $26.2 million, or $0.80 per diluted share, compared to a net loss of $4.3 million, or $0.13 per diluted share last year. Adjusted net income was $28.7 million, or $0.87 per diluted share, compared to $2.4 million, or $0.07 per diluted share a year ago.
“All three of our business segments contributed to an excellent quarter for Dorel. In Sports, the second quarter trend of increased demand for bicycles continued and outpaced product availability. In spite of this, the segment was still able to achieve the highest earnings in its history. Similarly, Dorel Home had an excellent quarter despite sales being limited by a lack of supply in some of its product categories. Dorel Juvenile improved its earnings and recovered from a first-half adjusted operating loss that was due to the negative impact of the COVID-19 pandemic,” stated Dorel President and CEO, Martin Schwartz.
Photo courtesy Dorel Sports
