Dorel home furnishings sales rose 8.8 percent driven by e-commerce gains
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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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Bill Esler | ConfSenior Editor

Bill wrote for WoodworkingNetwork.com, FDMC and Closets & Organized Storage magazines. 

Bill's background includes more than 10 years in print manufacturing management, followed by more than 30 years in business reporting on industrial manufacturing in the forest products industries, including printing and packaging at American Printer (Features Editor) and Graphic Arts Monthly (Editor in Chief) magazines; and in secondary wood manufacturing for WoodworkingNetwork.com.

Bill was deeply involved with the launches of the Woodworking Network Leadership Forum, and the 40 Under 40 Awards programs. He currently reports on technology and business trends and develops conference programs.

In addition to his work as a journalist, Bill supports efforts to expand and improve educational opportunities in the manufacturing sectors, including 10 years on the Print & Graphics Scholarship Foundation; six years with the U.S. WoodLinks; and currently on the Woodwork Career Alliance Education Committee. He is also supports the Greater West Town Training Partnership Woodworking Program, which has trained more than 950 adults for industrial wood manufacturing careers. 

Bill volunteers for Foinse Research Station, a biological field station staddling the border of Ireland and Northern Ireland, one of more than 200 members of the Organization of Biological Field Stations.