Dorel furnishings sales fall 19.6%
Furniture Today Staff -- Furniture Today, March 28, 2011
MONTREAL — Dorel Inds. said its revenues in its home furnishings segment declined 19.6% in the fourth quarter $97.4 million, while earnings from operations in the segment fell 53.8% to $5.6 million.
Dorel, whose juvenile and leisure divisions did well enough to give the company record sales and earnings for the year, blamed a slowdown at retail since the same quarter a year ago. The company said that most of its major customers - which include mass merchants such as Wal-Mart and Kmart - cut inventories and reduced orders.
Dorel said its earnings in the home furnishings segment, which includes ready-to-assemble specialist Ameriwood and importer and distributor Cosco Home & Office, were hurt by factors including lower sales and production levels and higher input costs, particularly freight costs.
For the year, home furnishings' revenues were up 9.5% to $507.8 million and earnings from operations were down 5.5% to $34.7 million. Most of the sales increase occurred in the first half of the year, when consumer tastes were focused on value-priced furniture in a difficult economic environment, the company said.
"Of the three segments, home furnishings is by far the one most exposed to mass merchant consumers in North America," the company said in a statement.
For the full company, fourth-quarter revenue was down 1.1% to $539.5 million while net income rose 4.2% to $25.2 million or 76 cents per share. Revenue for the year rose 8.1% to $2.3 billion, while net income climbed 19.2% to $127.9 million or $3.85 per share.
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Dorel furnishings segment sales decline 19.6% in 4Q
Mar 11, 2011
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