by Dorel Home reports 40.7% decline in Q3 revenue, representing an intentional reduction of non-core SKUs
MONTREAL — Dorel Industries reported a 15.7% decline in revenue for its third quarter ended Sept. 30, 2025 that was driven largely by revenue declines in its furniture segment.
The company said that third quarter revenue totaled $298.6 million, compared with $354.2 million the same period last year.
Its reported net loss more than doubled to $47.4 million, or $1.45 per share, compared with $21.9 million, or 67 cents per share the same period last year. Its adjusted net loss was $29.8 million, or 91 cents per share compared with$20.2 million, or 62 cents per share last year.
For the first nine months, it reported revenue of $911.4 million, down 13.5% from $1.05 billion the same period last year. It reported a net loss of $117.6 million, or $3.60 per share, compared with $99 million, or $3.04 per share the same period last year. Its adjusted net loss for the period was $74.6 million, or $2.28 per share, compared with $50.7 million, or $1.56 per share the same period last year.
Its Dorel Home segment reported third quarter revenue of $78.3 million, down 40.7% from $132.1 million the same period last year. The company noted that the segment is being reduced in size by an intentional reduction of non-core active SKUs.
It also said that sales were impacted by product availability issues, “compounded by most customers holding orders due to the uncertainty of tariff rates on imports from Asia. As was the case in the second quarter, the marked decline in revenue in the third quarter was most acute in the e-commerce channel as this channel is being de-emphasized in the go-forward business model. Year-to-date revenue was $257.3 million, a decrease of $144.9 million, or 36%, compared to last year.”
It said that gross profit for the third quarter decreased by $16 million, for a total loss of $13.2 million. It said this includes “restructuring costs, consisting mainly of inventory write-downs, as part of the Home segment’s restructuring program to exit non-profitable items and reduce its overall distribution footprint. It said that its “adjusted gross profit, excluding these amounts decreased by $5.7 million and was primarily due to lower sales volumes on imported products, which more than offset the benefits of lower overhead, and a reduced domestic operations loss. Operating expenses were significantly reduced for the quarter at $8.1 million versus $15.6 million in the prior year’s quarter, a direct result of the restructuring activities since December of last year.”
Its operating loss in the Home segment during the quarter was $26 million, compared with a loss of $13.2 million last year.
By comparison, revenue in its Juvenile segment declined .8% to $220.2 million, from $222.1 million last year. Gross profit in the segment was $61.1 million, compared with $62.7 million and operating profit was $4.8 million, compared with $7.2 million last year.
“The third quarter ended with our significant agreement with new financial partners that will fund our strategic agenda, in accelerating the growth of the Juvenile segment and executing the repositioning of the Home segment,” said Dorel President and CEO, Martin Schwartz. “The lack of liquidity prior to these agreements seriously impeded our ability to develop and bring new products to market. This was most acute in the Home segment, but as the quarter progressed it also delayed key product development initiatives in Juvenile, a problem that has now been resolved. This internal challenge was compounded by external pressures, particularly in the U.S. where tariff uncertainty and higher retail price points are creating a slowing retail environment. Despite this, Dorel Juvenile delivered a quarter characterized by stable revenue as strong international performance, led by our European operations, offset softness in the U.S. These results again demonstrated the strength of our global footprint and our commitment to building a more agile and competitive business. Dorel Home progressed on its restructuring plan, including the cessation of manufacturing operations, further workforce and footprint reductions and aggressive inventory liquidation.”
As part of its restructuring update, the company said that it ceased manufacturing at its Cornwall, Ontario, facility during the quarter “as part of a broader transition to a leaner organization with a reduced product line, focused on profitable categories.”
It also exited its California warehouse at the end of the quarter and noted that shipments “are now managed out of a much smaller space at the Juvenile segment’s facility in nearby Fontana, California. At the end of October, the same occurred at the segment’s Montreal facility with Dorel Home occupying a small portion of a new Juvenile warehouse. Both moves were facilitated by the active reduction of inventory levels of non-core go forward items.”
It also noted that work continues on the integration of back-office administrative functions and systems into Dorel Juvenile.
“The company remains on track to complete its transition with a go-live date planned in the fourth quarter,” Dorel said in its earnings release. “At the end of the third quarter North American non-manufacturing headcount has been reduced from approximately 470 employees to 240 employees. By year end this figure is expected to be further reduced to approximately 160 employees, with a permanent run rate of approximately 100 employees by the second quarter of 2026. This will be split evenly between Juvenile managed distribution/support functions, with a core Home segment team focused on sales, marketing and product development.”
