Reporting its first-quarter earnings Thursday, Dorel Industries singled out the delayed arrival of spring and its effect on bicycle sales as a key factor holding down sales and profit for the start of 2013.
"As stated in our year-end results press release issued March 6, 2013, the year is off to a slower start than 2012, as was expected," Dorel president and CEO Martin Schwartz said in statement. “In Recreational/Leisure the expected lower quarter was compounded by exceptionally poor weather in both North America and Europe.”
Revenue in Dorel’s Recreational/Leisure division—which includes cycling brands Cannondale, GT, Schwinn, Mongoose, Iron Horse, Pacific, RoadMaster and Sugoi—dropped 8 percent to $203.5 million, ending 13 consecutive quarters of growth. Gross profit for the division fell 12 percent to $51.3 million.
In addition to poor weather, Dorel said timing of deliveries earlier on the calendar than in Q1 2012 also held down sales at both mass merchants and IBDs.
The company’s overall revenue came in at $594 million, down 4.3 percent, with net income falling 23.2 percent to $22.3 million for the quarter ended March 31.
