by Despite ongoing challenges, company continues to forge ahead with restructuring plan aimed at returning company to profitability
MONTREAL — Dorel Industries reported a 16% drop in revenues for the second quarter ended June 30, while also reporting a decrease in its net loss for the same period last year.
The company said second-quarter revenue totaled $292.4 million, compared with $348.1 million last year. Its reported net loss was $44.9 million, or $1.38 per share, compared with $59.5 million, or $1.83 per, share last year.
Its adjusted net loss was $21.1 million, or 65 cents per share, compared with $13.6 million, or 42 cents per share, last year.
“Dorel Juvenile delivered a strong second quarter in 2025, building on the momentum from the start of the year and overcoming the challenges posed by U.S. tariffs,” said Dorel President and CEO Martin Schwartz. “Our performance was driven by strong growth in Europe and key international markets, disciplined cost control and favorable foreign exchange movements.”
He then turned to Dorel Home, which includes the brands Ameriwood Home, dhp furniture, Cosco, Ollie & Hutch, Novogratz, CosmoLiving, Max & Finn and Alphason Studio, among others.
“Dorel Home experienced a difficult second quarter with tariff uncertainty and liquidity constraints impeding sales,” he added. “On June 30th, 2025, we announced our expanded restructuring plan and are actively implementing changes to reduce costs and further streamline operations. We remain confident that the benefits of our Home segment transformation will begin to emerge in the fourth quarter of this year, with full impact expected in 2026.”
For the full first half, the company reported $612.8 million in revenue, down 12.3% from $699.1 million the same period last year. Its net loss was $70.2 million or $2.15 per share, compared with $77.1 million, or $2.37 per share, a year ago.
The adjusted net loss for the six months was $44.8 million or $1.37 per share, compared with $30.5 million, or 94 cents per share, last year.
In the second quarter, Dorel Home reported $74.3 million in revenue, down 43.5%, from $131.6 million last year. The company said the decrease “was driven primarily by reduced e-commerce gross sales, which declined approximately 51%, and ongoing product availability issues stemming from liquidity constraints and tariff uncertainty.”
The company also noted that brick-and-mortar and omnichannel sales accounted for about 56% of gross sales in the quarter, up from approximately 49% in the same period last year, “reflecting a strategic shift in channel focus.”
The company said its adjusted operating loss for the quarter was $12.7 million, compared to $8.3 million in the same period last year. It attributed this to lower sales volumes “which more than offset the benefit of a lower-cost structure that was part of the initial restructuring program implemented prior to the June 30, 2025, announcement of further cost reduction initiatives.”
Six-month revenue for Dorel Home totaled $178.9 million, down 33.7% from $270 million last year. It reported an adjusted operating loss of $23.9 million compared with $11.7 million in the prior year.
“Despite these pressures, the Home segment generated significant free cash flow in the second quarter, primarily through inventory reductions and improved accounts receivable collections,” the company said.
The report went on to provide an overview of its restructuring plan announced June 30, including its decision to cease operations at its Cornwall, Ontario, plant, which is expected to be completed by the end of the third quarter “to minimize losses and fulfill customer obligations.”
It added that the division is also working on exiting noncore product categories and also plans to significantly reduce inventory by the end of the year, which will result in a smaller distribution footprint.
Thus, warehouse consolidation efforts are under way, with Canadian and California operations transitioning into Dorel Juvenile facilities. The company said it also is finalizing its East Coast distribution strategy.
It added that during the quarter the Home segment recorded $22.4 million in restructuring costs, including $13.2 million for the noncash write-down of equipment and inventory. It said the remaining $9.2 million was for accrued severance costs, most of which will be paid out after the closure of the Cornwall manufacturing operations.
“The benefits of the Cornwall, Ontario, manufacturing facility closure will begin only in the fourth quarter of this year; however included in the severance amount were other headcount reductions initiated in May, generating $800,000 in monthly savings beginning in June 2025.”
The Dorel Juvenile segment reported second-quarter revenue of $218.1 million, up .8% from $216.4 million last year, while “organic revenue decreased slightly by .4%, after removing the impact of varying foreign exchange rates year over year.”
The company said that growth in the second quarter came from markets other than the U.S. “which faced headwinds from tariff-related market instability. Many U.S. customers paused orders as they waited for clarity on the long-term strategy of the U.S. administration on tariff rates.”
The company added that excluding the decline in revenue in the U.S. market, Dorel Juvenile had 12% growth for the quarter. The “slowdown meant that year-to-date revenue of $433.9 million represented an increase of $4.8 million, or 1.1% from $429.1 million in 2024. The year-to-date organic revenue increase was approximately 1.8%.”
The company said adjusted operating profit for the quarter in the Juvenile segment was $7.8 million, up $1 million from last year.
“Dorel Juvenile Europe was the principal contributor to the improved earnings, more than offsetting the impact of lower sales and earnings in the U.S. Earnings were also helped by favorable foreign exchange rates versus the prior year.”
The company said year-to-date adjusted operating profit in the Juvenile segment was $12 million, up $4 million or 50.6% compared to last year.
“Similar to the quarter, Dorel Juvenile Europe was the principal contributor to improved earnings, offsetting declines in the U.S.,” the company said. “The majority of the other Juvenile markets have also increased earnings year-to-date versus the prior year as the Juvenile segment overall continues to grow sales and earnings.”
