Dorel Industries reported that its Recreational/Leisure segment increased net sales 9.1 percent in the third quarter ended Sept. 30 driven primarily by shipments to the mass market channel. For the year-to-date, both the IBD and mass market channels have increased sales.
Operating profit for the segment improved US$2.5 million, or 25 percent, to US$12.5 million. For the nine months, operating profit was up US$6.4 million or 13.1 percent to US$55.5. Contributing to the improvement in operating profit was the on-going turnaround at SUGOI. Last year the apparel division lost US$2.2 million during the third quarter, whereas the changes implemented thus far this year resulted in a breakeven situation during the most recent quarter.
The segment's divisions were front and centre at the year's two most important bike shows, held in Europe and in the U.S. Several new Cannondale models were launched for 2013 and Cannondale was the recipient of three Eurobike 2012 awards. Cycling Sports Group (CSG) used the U.S. show to announce the launch of the new GURU Experience, an advanced personalized bike fitting and consultative retail system that will help consumers reach their peak performance and will further position CSG as the go-to bike company.
Recreational/Leisure Segment
Third Quarters Ended September 30 | |||||
2012 | 2011 | ||||
$ | % of rev. | $ | % of rev. | Change % | |
Total revenue | 228,953 | 209,823 | 9.1% | ||
Gross profit | 55,295 | 24.2% | 47,055 | 22.4% | 17.5% |
Operating profit | 12,516 | 5.5% | 10,008 | 4.8% | 25.1% |
Nine Months Ended September 30 | |||||
2012 | 2011 | ||||
$ | % of rev. | $ | % of rev. | Change % | |
Total revenue | 701,782 | 659,344 | 6.4% | ||
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