by Previously announced restructuring aims to help improve the bottom line in 2025 and beyond
MONTREAL — Dorel Industries announced losses for both the fourth quarter and full year ended Dec. 31, 2024, while revenues also declined for the quarter and full year in an ongoing challenging business environment that has particularly impacted lower-cost products.
The company reported a fourth-quarter net loss of $73 million, or $2.24 per share, compared with a net loss of $3.8 million, or 12 cents per share, a year earlier. The company said the loss includes $14.1 million in restructuring costs and $36.5 million of write-downs of deferred taxes.
Its adjusted net loss was $59.2 million, or $1.82 per share, compared with net income of $189,000, or 1 cent per share, a year earlier.
Meanwhile its adjusted operating loss for the fourth quarter was $8.9 million, compared with $2.9 million a year earlier.
For the full year, the company reported a net loss of $172 million or $5.28 per share compared with $62.4 million, or $1.92 per share, a year earlier. The company said the net loss for the full year includes $17.4 million in total restructuring costs, a $45.3 million impairment loss on goodwill and $36.5 million in write-downs of deferred tax assets.
It reported an adjusted operating loss of $28.4 million for the year, which it said was down from an operating loss of $47.7 million a year earlier. The company said this was because of stronger performance in its juvenile segment combined with reduced corporate expenses. It said the adjusted operating loss in its furniture segment was consistent with the prior year.
Fourth-quarter revenue totaled $326.8 million, down 6.8% from $350.7 million a year ago. Full-year revenue totaled $1.38 billion, down 0.6% from $1.39 billion the prior year.
Dorel Home, the company’s furniture segment, reported $114 million in fourth-quarter revenue, down 17.8% from $138.6 million the same period a year earlier. It reported an operating loss of $25 million, compared with $12.8 million the same period a year prior.
After excluding significant restructuring costs in the quarter, it noted that the adjusted operating loss was $11.7 million compared to $9.8 million a year ago.
It said that most product categories experienced declines, while sales of indoor seating, TV stands and step stools increased.
“Brick-and-mortar sales continue to be a focus area and, while slightly down compared to the previous year, this channel is expected to drive growth moving forward,” the company said.
It also noted that its adjusted gross margin for the fourth quarter decreased by 310 basis points compared to the previous year, “primarily due to increased promotional pricing and lower volume efficiency and production levels at the company’s ready-to-assemble plant.”
It added that a reduction in its RTA manufacturing footprint last year did not impact margins positively in the quarter but are expected to do so in the future.
For the full year, the furniture segment reported revenue of $516.2 million, down 7.7% from $559 million a year earlier. It noted that e-commerce sales represented the majority of the decline.
It also reported an operating loss of $95.3 million compared with $40.2 million a year earlier. The adjusted operating loss for the full year was $35.4 million, compared to $37.3 million in 2023.
The company noted that inventories declined by $79.7 million compared with the end of 2023 as it “reduced new purchases and drew down existing inventory in line with the realignment efforts of the business.” A reduction in gross profit dollars was partially offset by lower operating expenses of $13.5 million, down 17.2%, a $2.8 million decrease.
“As previously announced in January 2025, Dorel Home undertook significant restructuring efforts, including a workforce reduction primarily impacting selling and administrative functions and the announcement of the closure of the Montreal production facility,” the company noted, adding that this resulted in about $13.3 million in restructuring charges in the quarter. “The company also made considerable progress in consolidating operations into a single facility following the closure of the Tiffin, Ohio, RTA manufacturing facility. Equipment transfers and facility upgrades at Cornwall, Ontario, have been mostly completed, and management improvements have been implemented.”
The company’s juvenile segment reported fourth-quarter revenue of $212.8 million, up .4% from $212 million a year earlier. It reported an operating profit of $1.6 million, down from $11.3 million a year earlier. Its adjusted operating profit was $2.4 million, compared to $12.9 million the same period last year.
For the full year, the segment reported revenue of $864.1 million, up 4.1% from $829.8 million the same period a year earlier. It also reported an adjusted operating profit of $18.3 million, compared with $8 million a year earlier.
“Dorel Juvenile has maintained its trajectory of year-over-year revenue growth this quarter, achieving a 2.2% organic revenue increase,” said Dorel President and CEO Martin Schwartz. “Notably, Europe achieved a revenue increase of approximately 18% in local currency. However, the strengthening U.S. dollar against almost all other major currencies negatively impacted revenue growth and earnings. Despite this challenge in the quarter, we continued to invest in marketing and sales initiatives to build momentum for 2025.
“Dorel Home revenues remain significantly lower than in previous years, and as previously announced on Jan. 30, 2025, we are proactively adjusting our operational footprint to achieve profitability. Looking ahead, Dorel Home will focus on leveraging core competencies, strengthening retailer relationships and driving growth with innovative, high-margin products.”
