Dorel, owner of cycle brands Cannondale, GT, Schwinn and Mongoose, saw growth in its recreational and leisure divisions, according to its quarter one 2012 results.
Compared with Q1 2011, total revenue grew 10.2 per cent to $220,918, while gross profit rose 14.6 per cent to $58,440 for the quarter. Operating profit was up 20.3 per cent to $21,380.
The company said its revenue growth of 2011 continued into 2012 Q1 with sales increasing in the IBD channel in Europe, Japan and the US. It added that the Cannondale, GT and Mongoose brands had fared particularly well in Europe.
Dorel added: "CSG Canada also contributed to the sales growth with strong spring shipments to certain key customers. While more modest, sales were also up to the segment’s mass merchant customers as favorable weather conditions helped drive consumer demand. Operating profit for the quarter was the highest ever in the segment’s history, dating back to 2004. The AFG apparel division was a positive contributor to earnings and its turnaround is on track."
Commented on overall performance – taking in diverse sectors such as home furnishings and juvenile – Dorel president and CEO Martin Schwartz said: “Last year was characterised by a good start, difficult second and third quarters and a reversal of that negative trend in the final quarter. I am pleased that we are continuing to move in the right direction.
"Recreational/Leisure continued to drive results, posting its best quarter ever on the back of a strong 2011. Powered by brand building, continuing innovation and growing distribution across the globe, sales grew in both the IBD and mass merchant channels. There has also been operational improvement at our Apparel Footwear Group (AFG)."