Dorel Sports has posted Q2 financials which show revenue for the segment totalled $251.1 million, compared to last year's $286.2 - a 12.3 per cent dip.
Organic revenue declined by approximately 5%, after removing the impact of varying foreign exchange rates year over year. Strong sales were noted in Japan and the UK due to increased demand. Organic sales decline in Europe was primarily due to dealers loading up on inventory in the first quarter prior to price increases implemented in April and holding back on current purchases in the perspective of the new model-year 2016 line coming in the third quarter.
For the first six months of 2015 Dorel Sports' revenue decreased by $46.6 million, or 8.8% to $480.0 million compared to last year’s $526.6 million. Organic revenue declined by approximately 2% in the year to date, after removing the impact of varying foreign exchange rates year over year.
All major divisions of the segment saw their currencies weaken significantly against the US dollar which had a net negative impact on the segment’s operating profit of approximately $7 million during the second quarter and $14 million during the first six months of the year.
"Dorel's juvenile and sports segments continue to operate in an environment of challenging foreign exchange rates as the U.S. dollar remains strong against practically all currencies," said Martin Schwartz, Dorel's president and CEO. "This had a significant effect on our earnings, impacting operating profit in the two segments combined by a net negative amount of approximately $12 million in the second quarter alone. We have done a good job mitigating this impact with selective price increases and other proactive measures and our results reflect that."
Meanwhile, Dorel owned CSG UK has this week told BikeBiz it believes it is the "UK's fastest growing established distributor," recording a turnover increase of 38 per cent year-on-year.