Canada's Dorel Industries has reported sales in its "sports" segment increased 7.4 per cent, to $224.5 million.
The owner of Cannondale, GT and Schwinn said in a statement that the results were “much better quarter than anticipated, surpassing the expectations indicated in the Company’s first quarter results press release.”
Dorel had warned that poor Spring weather in most markets would impact the sports division's results.
Six-month revenue increased $8.1 million, or 1.9 per cent, to $431.2 million. Year on year, the second quarter revenue growth was over 10 percent at Dorel's Cycling Sports Group.
Dorel Sports recently sold its apparel brands Sugoi and Sombrio to Louis Garneau Sports, resulting in restructuring costs of $11.2 million thanks to a write-down of the Sugoi trademark and inventory markdowns.
Second quarter operating loss for Dorel's sports division was $3.3 million compared to a previous year operating profit of $4.9 million.
Dorel president and CEO Martin Schwartz said in a statement: “Across our segments, Dorel Sports rebounded strongly after a tough start to the year, posting solid adjusted results.”
He added: “Dorel Sports remains on track to significantly improve earnings over last year. The second quarter was slightly better than expectations and our outlook remains positive with upcoming new products expected to drive improved sales and adjusted operating profit in both the third and fourth quarters.”