by Company also reports 1st quarterly operating profit in over 4 years
MONTRÉAL – Dorel Industries Inc. narrowed its net loss for its third quarter ended Sept. 30, while also reporting a 7.5% decline in revenue for the same period.
The company attributed the improvement in its net loss to a restructuring program that resized its operations. This also contributed to its first operating profit since the second quarter of 2022.
Revenue totaled $276.1 million, down 7.5% from $298.6 million. Its net loss totaled $3.5 million, or 10 cents per share, compared to a loss of $47.4 million, or $1.45 per share, the same period last year.
Operating profit was $19.7 million, compared with an operating loss of $25.7 million the same period last year. Gross profit was $71.3 million, or 25.8% of revenue, compared with $47.9 million, or 16% of revenue, last year.
For the full nine months, the company reported $793.4 million in revenue, down 12.9% from $911.4 million last year. Its net loss for the first nine months was $70.9 million, or $2.06 per share compared with a net loss of $117.6 million, or $3.60 per share, the same period last year.
In the Dorel Home furniture segment, third-quarter revenue totaled $54.1 million, down 30.9% from $78.3 million the same period last year, reflecting its reduction of non-core SKUs. Its operating profit in the segment totaled $12.3 million compared with a loss of $25.6 million the same period last year. Gross profit totaled $8.7 million, or 16% of revenue compared with a loss of $13.2 million a year earlier.
For the first nine months, the segment reported $139 million in revenue, down 45.9% from $257.3 million last year. Its operating loss was $17.5 million, compared to a loss of $72.3 million a year earlier.
Reiterating what it stated in its second quarter statement, the company said that Dorel Home’s new business model is focused on the Cosco branded product line, “with Dorel Home Europe absorbing select North American furniture SKUs for key customers.”
The company said that Cosco recorded its highest quarterly sales since the first quarter of 2025, “supported by successful promotions and improved engagement with key retail customers. The segment continued to clear legacy inventory and prepare for a smaller North American distribution footprint. In Europe, demand remained soft, although performance improved at selected accounts and management continued to pursue targeted promotions and assortment expansion.”
Revenue in the Dorel Juvenile segment was $221.9 million, up .9% from $220.2 million the same period last year. For the first nine months, it reported $654.4 million in revenue, level with last year.
Operating profit for the quarter was $11.3 million, compared with $4.9 million last year. For the full nine months operating profit was $18.6 million, compared with $14.4 million, last year.
For full details from the Q3 report, click here.
