Dorel Sports has delivered its eighth consecutive quarter of revenue growth, with first-quarter revenue increasing to $270.3 million – an increase of $82.1 million or 43.6% from $188.2 million last year.
The demand for bicycles continued ‘unabated’, said the company, as people continue to choose cycling for physical activity and leisure. The segment overcame supply chain challenges characterised by a lack of shipping availability out of Asia and shortages of bicycle components.
Cycling Sports Group’s gains were driven by significant double-digit growth in almost all countries as demand for Cannondale models was ‘unprecedented’. Pacific Cycle’s revenues increased in line with retail POS throughout the quarter but saw a contraction in core margins due to ongoing cost headwinds.
Demand was strong for Caloi in all channels with product mix improvement and growth in both IBD sales and e-commerce. However, supply shortages resulted in a slight sales decline in Brazil.
As a result of higher sales and better margins, Q1 operating profit was $21.8 million, compared with an operating loss of $0.6 million last year.
“Both Dorel Sports and Dorel Home continued to benefit from strong consumer demand for their products, with further growth limited only by available supply,” stated Dorel president and CEO Martin Schwartz. “Our solid quarter is a tribute to our teams who did an excellent job of mitigating severe supply chain difficulties.
“Continuing cost increases in all segments for freight and commodities, as well as ocean container availability, will continue to create significant pressures. We will have to offset this with price increases through the rest of this year.”
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