by Juvenile segment continues to outperform the residential furniture side of business, which had a significant drop in sales for both periods
MONTRÉAL — Dorel Industries Inc. reported a decrease in revenue for the second quarter and first half ended June 30.
Second quarter revenue totaled $249.5 million, down 14.7% from $292.4 million the same period a year earlier. It also reported a net loss of $42.5 million, or $1.23 per share, down from $44.9 million, or $1.38 per share the same period last year.
Its adjusted net loss was $23.5 million, or 68 cents per share, compared with $21.1 million, or 65 cents per share last year.
Revenue for the first half totaled $517.3 million, down 15.6% from $612.8 million a year earlier. It also reported a net loss of $67.4 million, or $1.96 per share, compared with $70.2 million, or $2.15 per share a year earlier.
Its adjusted net loss for the first six months was $45.8 million, or $1.33 per share compared with $44.8 million, or $1.37 a year earlier.
The company saw a higher percentage revenue decline in the Dorel Home segment than the Dorel Juvenile segment. For example, in the second quarter, revenue in the Home segment declined 46.4% to $39.8 million, compared with $74.3 million a year earlier. Its operating loss was $23.9 million, down from $35.2 million a year earlier.
For the first half, revenue in the Dorel Home segment was down 52.6%, to $84.9 million, from $178.9 million. Its operating loss declined to $29.8 million, from $46.7 million a year earlier.
In the Juvenile segment, revenue for the quarter was down 3.9% to $209.7 million, from $218.1 million a year earlier. Operating profit was $3.6 million, down from $6.5 million a year earlier.
For the first half, revenue in the Juvenile segment was down .3% to $432.4 million from $433.9 million a year earlier. Operating profit was $7.2 million, down from $9.5 million a year earlier.
“Dorel Juvenile delivered a resilient second quarter, supported by strong international performance and continued momentum in its premium brands,” said Dorel President and CEO Martin Schwartz. “The segment continued to improve underlying operating performance, with growth across several key international markets, despite aggressive promotional activity by direct competitors in the United States affecting sales. Ongoing investment in innovation, consumer engagement and commercial execution continues to reinforce Dorel Juvenile’s ability to navigate market challenges while strengthening its foundation for long-term profitable growth.”
He added that as previously announced with its first quarter results, Dorel Home required a further reduction in its overhead structure.
“During the quarter, we advanced a new business model centered on Cosco product categories,” he said. “In addition, our European furniture distribution company, Notio, will continue to supply key large retailers with select furniture SKUs. Although this transition resulted in a reduction in revenue in the quarter, we are very pleased that the Cosco business performed in line with expectations and was profitable under the new operating model.”
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