MONTRÉAL, QUÉBEC- Furniture manufacturer and consumer goods firm Dorel Industries Inc. (TSX:DII.B)(TSX:DII.A) first quarter revenue fell revenue was U.S. $645.9 million, down 2.9 percent, but adjusted net income for the quarter was up 66.7 percent to U.S. $19.7 million. The furniture side of the business did well, says Martin Schwartz, CEO, and restructuring accounted for the decline overall.
"Dorel Home Furnishings delivered another record quarter and has evolved into a growth company with opportunity for further expansion with its on-line customers," Schwartz said.
The reported net income includes restructuring and other costs and remeasurement of forward purchase agreement liabilities, Dorel says. Its home furnishings divisions, many of them ready-to-assemble solid wood and upholstered furnishings, include altrafurniture.com, ameriwood.com, coscoproducts.com, and dhpfurniture.com, dorelasia.com and signaturesleep.com, Division include Ameriwood/Altra, Cosco Home & Office,
Dorel Home Products, and Dorel Asia.
Dorel says its Home Furnishings revenue increased by U.S. $14.3 million, or 8.8 percent to a record U.S. $176.1 million compared with U.S. $161.8 million a year ago. The e-commerce distribution channel represented 42 percent of total segment sales, compared to 30 percent last year. This growth far exceeded reductions in sales through the brick and mortar channel.
The Home Furnishings operating profit increased to U.S. $16.5 million from U.S. $9.6 million, reaching 9.3 percent as a percentage of revenue. This was due to the continuing sales growth as well as higher margins attained through the e-commerce distribution channel. Partly offsetting the improved gross margin dollars were higher selling and general and administrative expenses to support the significant sales growth in the quarter.
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