Dorel Sports, whose brands include Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse, saw its revenues increase year-on-year by 22.1 percent to $305.6 million in the third quarter, marking the sixth consecutive quarter of revenue growth for the segment. Excluding the impact of foreign exchange rates, quarterly revenues improved by around 23.8 percent. Sales in the quarter were boosted by continuing record demand for bicycles throughout the summer at the Cycling Sports Group (CSG) and Pacific Cycle divisions. The operating profit for the quarter was $24.2 million, four times higher than the operating profit of $6.0 million recorded a year ago. This was helped along by an increase 4.7 percentage points in the gross margin and lower marketing expenses.
Dorel Industries, the parent company based in Montreal, operates three distinct businesses in Juvenile products, Sports (bicycles) and Home products. Overall, the group posted third-quarter revenues of $753.4 million, up by 9.9 percent from the third quarter of last year. The reported net income was $26.2 million, as compared with a net loss of $4.3 million in the third quarter of 2019. Dorel’s management said that all three of its business segments contributed to an excellent quarter for the company, which is gearing up to go private.
