Dorel says bikes and home furnishings divisions thrived during lockdown
The Montreal-based manufacturer says it earned US$11.1 million or 34 cents per share for the quarter ended June 30
MONTREAL — Shares in Dorel Industries Inc. fell in trading Aug. 11 even after the company reported its second-quarter profit and sales rose compared with a year ago amid increased demand for bikes and home furnishings during the pandemic.
The company’s class B shares were down 34 cents at $8.43 in trading on the Toronto Stock Exchange.
The Montreal-based company says it earned US$11.1 million or 34 cents per share for the quarter ended June 30, up from US$2.9 million or nine cents per share a year earlier.
On an adjusted basis, Dorel, which keeps its books in U.S. dollars, said it earned 48 cents per share in its latest quarter, up from an adjusted profit of 19 cents per share in the second quarter of 2019.
Revenue for the quarter rose 8.1% to US$724 million from US$670 million a year ago as its sports and home businesses benefited from increased demand as consumers bought bicycles and home furnishings amid the pandemic.
While its juvenile segment’s sales and earnings were impacted by store closures, its sports division posted record operating profit and its home furnishing operations had its best quarter for revenue during the prolonged lockdown.
“Dorel Juvenile remained challenged through the first half of the quarter, hurt by continuing store closures in many of its markets, a situation which began reversing as more stores reopened during the latter part of the period,” stated CEO Martin Schwartz.