Dorel News

Dorel Reports First Quarter 2023 Results

Montreal, Quebec -
  • Dorel Juvenile continues to gain market share despite overall market weakness in key markets; innovative new products launched
  • Dorel Home sales decline as retailers reduce inventories amid industry softness
  • Network security incident impacts revenue and net income

Montréal, May 15, 2023 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the first quarter ended March 31, 2023.  

Revenue from the first quarter from continuing operations was US$333.2 million, down 22.2%, from US$428.0 million a year ago. Reported and adjusted net loss1 from continuing operations was US$31.5 million or US$0.97 per diluted share compared to the reported net loss from continuing operations of US$27.2 million or US$0.84 per diluted share a year ago. Adjusted net loss from continuing operations for the first quarter in 2022 was US$24.8 million or US$0.76 per diluted share.  

“The environment in which our segments operate remains challenging as retailers are very cautious on inventory and replenishment ordering. In the Home segment, this is compounded by consumers remaining reluctant to spend their disposable income on furniture. We also saw some market weakness in Juvenile in North America which masked the fact that we gained market share in many of our categories. Major retailers also struggled to keep proper in-stock levels on shelves which limited sales opportunities. As previously disclosed, both Dorel Home and Dorel Juvenile were affected by a late-quarter network security incident which prevented shipping. This resulted in a reduction in sales and net income of US$13.0 million and US$4.0 million respectively. We were unable to ship in certain locations, from several days up to two weeks, but we are now fully operational and have shipped most of the delayed orders. Looking forward, we expect a positive turnaround in Juvenile as soon as the second quarter as we have introduced some of our best new products in years with several more to come. The path to recovery for Home is longer, but we expect our retail partners to begin ordering on a more regular cadence in the mid-to-near future,” stated Dorel CEO & President, Martin Schwartz.

1This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.