Dorel Sports Sees Sales Decline in Europe
QUEBEC, Canada – For the first six months of 2015 Dorel Sports (including its Cycling Sports Group division) saw its revenue decrease by USD 46.6 million (€ 42.5mn), or 8.8% to USD 480.0 million (€ 437.7mn) compared to last year’s USD 526.6 million (€ 480.2mn). Organic sales declined in Europe is noted in the financial report of listed Dorel Industries Inc.
On its decreased sales in Europe Dorel says in its financial report, “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.”
Also sales decline in US
The report also states that in the UK as well as in Japan strong sales were noted due to increased demand. Dorel Sports, including the Cycling Sports Group operating brands like Cannondale, Schwinn, GT, Charge, Fabric and Mongoose, saw its sales decline in North America. This was due partly to a wet month of May as well as mass customers reducing inventory levels in the sporting goods categories.
“Caloi’s had double digit growth in local currency as that division rebounded from last year’s soft second quarter due to the negative impact by the World Cup events in Brazil,” notes Dorel’s report.
For the whole of Dorel Industries (including its important ‘Juvenile’ division the listed company announced that total revenue was up 2.1% to USD 669.6 million (€ 610.6mn). Organic revenue declined by approximately 2%, after removing the impact of varying foreign exchange rates year over year.