(SGI) Dorel Sports, the bike division of Dorel Industries, managed to grow through the Covid-19 pandemic. It registered revenues of $188.2 million for the first quarter, representing a 2.0 percent increase from the same quarter a year earlier, driven by strong performances at the Cycling Sports Group (CSG), whose brands include Cannondale and GT, and Pacific Cycle (PCG), which comprises brands like Mongoose and Schwinn.
PCG’s growth accelerating particularly in the last two weeks of March as consumer demand for bikes spiked amid the pandemic lockdowns. The business unit’s growth was offset by weakness at Caloi, the Brazilian subsidiary of the group, due to lower demand caused by price increases aimed at offsetting the devaluation of the Brazilian real, as well as store closures related to Covid-19.
However, Dorel Sports’ profitability was derailed by the pandemic, which eroded about $6.0 million of the operating results, ending the quarter with an operating loss of $0.6 million, versus an operating profit of $4.5 million last year. Many bicycle factories in Asia were forced to close for four to six weeks, reducing supply. Though demand remained strong, there were some constraints in the ability to realize sales as many countries locked down their retail operations. A return to profitability is anticipated for the second quarter. More in SGI Europe.