Third Quarter Financial Report a Mixed Bag for Dorel

Dorel Industries experienced shaky performance in the third quarter of 2024, with overall revenue down by 1.5 per cent compared to the same period last year.

The company posted a net loss of $21.9 million US or 67 cents per diluted share, widening from a loss of $10.4 million US or 32 cents per diluted share in Q3 2023. Adjusted net loss for the quarter was $20.2 million US or 62 cents per diluted share.

For the first nine months of 2024, Dorel’s revenue rose 1.5 per cent year-over-year to $1.05 billion US, though the company incurred a net loss of $99 million US or $3.04 per diluted share.

The company’s juvenile segment continued its positive momentum, posting nine per cent organic revenue growth driven by strong performances across North America, Europe and international regions. The segment benefitted from successful product launches and strong customer reception, with key deliveries beginning in the quarter.

“Dorel Juvenile earnings again exceeded last year’s comparative quarter,” said Martin Schwartz, president and CEO of Dorel Industries, in a statement. “Reception to our new product launches in all regions has been very strong.”

In contrast, Dorel Home faced a 14 per cent revenue decline, struggling amid a challenging furniture market. While some product categories like indoor seating, television stands and step stools showed resilience, declines in other areas outweighed these gains. Promotional pricing and lower production efficiency further pressured gross margins.

“We initiated substantial cost reduction initiatives in the quarter as we continue to right-size the business to current realities,” said Schwartz.