Dorel Reports Difficult Second Quarter for Home Division
Dorel Industries experienced a 16 per cent year-over-year drop in revenue in the second quarter of 2025.
The consumer goods specialist reported revenue was $292.4 million US compared to $348.1 million US in 2024, a net loss of $55.7 million US.
Looking at the first half of the year, Dorel’s revenue was $612.8 million US, down 12.3 per from the same period a year ago.
Dorel Home is at the root of the company’s slumping top line. The division experienced a $57.3 million US year-over-year loss — a 43.5 per cent drop in revenue — in the second quarter. Revenue was $74.3 million US compared to $131.6 million US in 2024.
The decline was driven primarily by reduced e-commerce gross sales, which plummeted approximately 51 per cent, and ongoing product availability issues stemming from liquidity constraints and tariff uncertainty. Brick-and-mortar and omnichannel sales accounted for approximately 56 per cent of gross sales in the quarter, up from approximately 49 per cent in the same period last year, reflecting a strategic shift in channel focus. Six-month revenue was $178.9 million US, a decrease of $91.1 million US or 33.7 per cent, from $270 million US in 2024.
The adjusted operating loss for the quarter was $12.7 million US, compared to $8.3 million US in the same period last year. The principal cause was lower sales volumes. This more than offset the benefit of a lower cost structure that was part of the initial restructuring program implemented prior to the June 30 announcement of the accelerated restructuring plan, including the decision to cease manufacturing operations at its Cornwall, Ont., facility, effectively ending all furniture production in Canada.
During the quarter, Dorel Home recorded restructuring costs of $22.4 million US, of which more than half was for the non-cash write-down of equipment and inventory. The remaining $9.2 million US was for accrued severance costs, the majority of which is to be paid out after the closure of Cornwall manufacturing operations at the end of the third quarter.
Dorel president and CEO Martin Schwartz said he expects the benefits of the home segment transformation to emerge in the fourth quarter of this year, with full impact felt in 2026.
Unlike the home segment, Dorel Juvenile delivered another positive quarter, building on the momentum from the start of 2025, and overcoming the challenges posed by U.S. tariffs. Revenue was $218.1 million US, a modest year-over-year increase of 0.8 per cent. The growth came from Europe and key international markets. Many U.S. customers paused orders as they waited for clarity on the long-term strategy of the Trump administration on tariff rates.