MONTREAL -- Dorel Industries Inc. said sales for the entire company’s fourth quarter and full year, and higher sales for its furniture segment.
Overall revenue for the fourth quarter was US$648.7 million (the company reports in U.S. Dollars) down 3 percent from a year ago. Revenue for the full year for the entire company was US$2.60 billion, down 3 percent from the previous year. Adjusted net income for the year rose slightly to US$58.3 million.
Dorel Home, the company’s furniture business, reported that fourth quarter revenue increased US$3.2 million, or 1.8 percent to US$177 million, representing the highest quarter in the segment’s history. Full year revenue grew US$49.4 million, or 7.2 percent to US$735.2 million.
The segment experienced growth in almost all product categories and posted another record quarter and full year of sales to online retailers, representing respectively 51 percent and 45 percent of total segment sales compared to 44 percent and 37 percent in 2015. This improvement far exceeded reductions in the brick and mortar channel.
The segment has been rebranded as Dorel Home in view of its broadened product range and its evolution from a traditional furniture company to one offering today’s marketplace a best-in-class technological distribution platform for home products in today’s multi-channel marketplace.
Dorel is one of the largest Canadian companies in the FDMC 300. See http://www.woodworkingnetwork.com/fdmc-300 for the full list.
“As we enter 2017, all three of our business segments are positioned to improve earnings. Dorel Home had an exceptional 2016 and we remain bullish on their prospects. The on-going shift from traditional mass market brick and mortar sales to e-commerce has allowed this segment to improve its earnings significantly over the past two years. Given the continual growth of the e-commerce channel, we expect a further increase in earnings, but at a slower pace,” stated Martin Schwartz, Dorel president and CEO. See http://www.dorel.com.