Dorel Industries says it has restored the luster of Cannondale bikes and dealers across the globe are responding.
Since acquiring the brand in 2008, Dorel said it has grown Cannondale’s dealer network in Canada from 72 stores to just fewer than 100, picked up many top dealers in the U.S. and burnished its image in Europe through investments in product development and team sponsorship, Dorel President and CEO Martin Schwartz said last week at a CIBC World Markets investor conference.
“When we bought Cannondale a couple years ago, Cannondale had a great name,” Schwartz said. “The products weren't up to the standard of the name.”
Looking ahead, Schwartz said Dorel would consider buying or building a parts and accessories business to cater to its growing list of IBD customers. Dorel’s P&A business on the mass merchant side has been very profitable, Schwartz said.
Schwartz said rising commodity costs in the second quarter would squeeze Dorel’s margins in the third quarter, but that many prices have already started to ease and margins would likely rebound in the fourth quarter. Dorel is a major buyer of particle board for ready-to-assemble furniture, resin for its juvenile care seats and products and steel and aluminum for its cycling business.
