Dorel Industries has reported that its third-quarter revenue in its bike division dropped 18 percent. Meanwhile Fox Factory’s third-quarter results jumped by 8.8 percent.
Dorel blamed its slump on extreme weather in North America, the bankruptcy of Toys R Us, and the general weakness of the global bicycle market.
CFO Jeffrey Schwartz said : "This was a particularly tough quarter for lots of small reasons that added up to a point where we had a revenue decrease of 18 percent. We don’t believe that the business is that bad overall, and we’ve already seen a Q4 bounce-back starting in October."
Revenue totaled $205.5m, down $45.2m a year earlier. The bike division’s operating profit also dropped, down $5.6m to $200,000.
Dorel CEO Martin Schwartz said: "It was a disappointing quarter for Dorel Sports, which became caught up in the continued weakness in the global bicycle market. As a major player in the bike sector, Dorel Sports is not immune to the disruption in the North American retail environment, which this year was amplified by persistent inclement weather across the United States and Canada.
Dorel’s bike brands include Cannondale, Caloi, Pacific Cycle, Schwinn, GT, and Mongoose.
Meanwhile, Fox Factory had a much better Q3. It reported record sales of $127.4m, up 16.9 percent year on year. The Fox Factory business includes the Fox, Marzocchi, Race Face and Easton Cycling brands, sales were up 8.8 percent in the quarter.
Fox’s CEO Larry L. Enterline said: "We are pleased to report another quarter of record sales and earnings results which exceeded our expectations. Our third quarter results reflect continued broad success across both our powered vehicle and bike businesses. Looking ahead, our team remains committed to further building the Fox brand presence in our existing product categories and consistently pursuing new market opportunities."