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Published Nov 14, 2024 • 1 minute read
MONTREAL — Dorel Industries Inc. reported its third-quarter loss in its latest quarter more than doubled compared with a year ago as its revenue edged lower.
Dorel chief executive Martin Schwartz said the company’s home business faced significant challenges, resulting in a 14 per cent decline in revenue for the segment compared with the same period last year.
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“Within our categories, positive momentum in indoor seating, TV stands and step stools were not enough to offset declines in other categories,” Schwartz said in a statement.
“We continue to drive sales with promotional pricing, which coupled with lower production efficiency meant our gross margins were lower than expected. We initiated substantial cost reduction initiatives in the quarter as we continue to right-size the business to current realities.”
The maker of furniture and baby gear, which keeps its books in U.S. dollars, says it lost US$21.9 million or 67 cents US per diluted share for the quarter ended Sept. 30.
The result compared with a loss of US$10.4 million or 32 cents US per diluted share in the same quarter last year.
Revenue totalled US$354.2 million, down from US$359.7 million a year ago.
Dorel’s juvenile business, which includes child car seats, strollers and other baby gear, earned US$222.1 million in revenue for the quarter, up from US$206.0 million in the same quarter last year.
Meanwhile, Dorel’s home business, which includes home furnishings, saw US$132.2 million in revenue in its latest quarter, down from US$153.7 million in the same quarter last year.
The company said it saw lower sales in several categories, including fireplaces, futons, dressers, indoor tables, and utility storage. However, sales in in indoor seating, TV stands, and step stools rose.
On an adjusted basis, Dorel says it lost 62 cents US per share in its latest quarter compared with an adjusted loss of 32 cents US per share in the same quarter last year.
This report by The Canadian Press was first published Nov. 14, 2024.
Companies in this story: (TSX:DII.B)
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