Dorel Industries’ recreational/leisure segment saw sales grow by 15 percent year-over-year to $161.4 million in the first quarter, with sales to independent bike dealers growing by 8 percent and revenues from Sugoi apparel up by 9 percent. Operating income for the period ended March 31 fell by 33 percent to $10.0 million on higher infrastructural and R&D expenses. Segment gross margins were off by 1.7 percentage points to 22.9 percent, attributed to a less profitable product mix as more consumers shifted to lower-priced models.

Dorel confirmed that it will pull back its marketing programs for bicycles for the moment, adding that it still doesn’t have much visibility on the segment. But the parent company confirmed that retail bike sales were “still happening,” though at lower price points as more consumers trade down.

Separately, Dorel is re-focusing on the gas-powered motor scooter business with Schwinn via a new licensing agreement with Tomberlin PowerGroup International of Augusta, Georgia, becoming the brand’s official distributor in the category.