Dorel Reports First Quarter 2026 Financial Results

• Dorel Juvenile results driven by strong international performance
• Dorel Home continuing to navigate difficult industry environment
  
  

MONTRÉAL, May 07, 2026 (GLOBE NEWSWIRE) -- Dorel Industries Inc. (TSX: DII.B, DII.A) today announced its financial results for the first quarter ended March 31, 2026.

First quarter revenue was US$267.8 million, down 16.4%, from US$320.5 million a year ago. Reported net loss for the quarter was US$24.9 million or US$0.72 per diluted share compared to US$25.3 million or US$0.77 per diluted share a year ago. Adjusted net loss¹ for the quarter was US$22.3 million or US$0.65 per diluted share compared to US$23.6 million or US$0.72 per diluted share a year ago.

“Dorel Juvenile delivered a solid first quarter, demonstrating resilience in a volatile global environment marked by geopolitical uncertainty, foreign exchange headwinds, and rising input costs. Strong growth and improving profitability across Europe and International markets, including Export, Australia, and Latin America, helped offset softness in the U.S. business. Disciplined cost management supported performance despite margin pressure from currency movements, while continued investment in innovation and strong global customer engagement reinforced the strength of Dorel Juvenile’s diversified portfolio and its positioning for sustainable growth.”

“Dorel Home results improved meaningfully compared to both prior year and last year’s fourth quarter, but this was due only to substantial reductions in overhead and operating expenses. Sales were disappointing due to a lack of success in certain traditional furniture categories. As evidenced by the recent announced closure of two competing Canadian-based furniture manufacturers, the furniture industry remains very difficult. This is forcing us to be even more focused on exiting categories and channels where our competitive advantage is limited and continue with a product line that minimizes our overhead structure. This will allow us to return to profitability and provide a clearer foundation for future success as the year progresses,” stated Dorel President & CEO, Martin Schwartz.

¹ This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.

For the first quarter of 2026, revenue reached US$222.8 million, a 3.2% increase compared to the prior year. Adjusted for foreign exchange rate variations year-over-year, the organic revenue decline¹ was 2.8% resulting from a decrease in sales in North America, partially offset by double-digit growth delivered across Europe and several international markets. Adjusted operating profit¹ was US$5.3 million, an increase of US$1.1 million compared to last year. This was despite a decline in gross margins due principally to year-over-year variations in foreign exchange rates, which were more than offset by a reduction in operating costs.

In Europe and other international markets, improved results offset the challenges in the U.S. with both revenues and earnings increasing over prior year. Global sales of the flagship Maxi-Cosi brand increased almost 20% in the quarter and make up over 40% of segment sales. In the U.S., the revenue decline reflects continued softness in the juvenile category following tariff-related disruptions, heightened promotional pressure, and cautious consumer spending. Despite these challenges, operating expenses were significantly reduced year over year as management continued to align the cost structure to a lower-demand environment. While the U.S. market remains challenging, the Company continues to focus on targeted innovation, portfolio optimization, and selective customer programs to support longer-term recovery.

Innovation and customer partnerships remained key strategic priorities. In March, Dorel Juvenile hosted its annual Global Customer Conference in Algarve, Portugal, bringing together more than 240 customers from around the world. The event highlighted the Company’s parent-centric design philosophy and showcased major product innovations, including the launch of the new Maxi-Cosi Coral GO, as well as new collections and the proprietary SLIDETECH® 2 technology. Interactive product hubs encouraged hands-on engagement and real-time feedback, reinforcing strong customer confidence and generating positive commercial momentum, particularly within the nursery furniture portfolio.

Revenue for the first quarter was US$45.1 million, a decrease of US$59.5 million, or 56.9%, from US$104.6 million last year. While revenue declines were anticipated given the new operating model of the Home segment, the overall sales level in the quarter was below expectation and was not sufficient to offset the reduced cost structure even though sales of Cosco branded products, the predominant business, performed near plan. As a result, the adjusted operating loss¹ for the quarter was US$4.9 million compared to US$11.1 million in the prior year.

Inventory availability improved slightly in the quarter, but continued to hamper sales, particularly for items sold via the e-commerce channel of distribution. In addition, our ability to compete in certain product categories resulted in a significant sales shortfall in those categories. Conversely, the Cosco branded line of folding furniture and step ladders was much closer to expectations, with the shortfall in the other categories triggering a further review of product lines and channels. In Europe, the business ran closer to plan and is aggressively working on broadening their customer portfolio with leading omni-channel retailers.

Outlook

“Driven by our success outside the US. Market, the Juvenile segment performed well in the quarter. Looking forward, we expect the sales and earnings to improve in the U.S. and coupled with our on-going success in Europe and other markets, this gives us confidence that we will have a strong second half. Expectations are that adjusted earnings for full year 2026 will exceed prior year. While we are seeing some upward pressure on costs, we are actively engaged with strategic suppliers and addressing other costs to mitigate these headwinds,” commented Dorel President & CEO, Martin Schwartz.

“At Dorel Home, we are prudently re-assessing the business to identify our path forward. We intend to leverage our excellent retail partnerships in making choices on categories that make sense for them and improve our portfolio mix going forward. Cosco remains a leader in its product categories, and this has been particularly true as uncertainty around tariffs meant retailers were exploring alternate sources of supply and we are able to work with them from multiple jurisdictions. Fortunately, the work done last year in reducing our footprint to what is today, allows us to make any needed changes relatively quickly. While this is not likely to impact the second quarter, we expect that we can deliver profits in the Home segment in the medium to long term,” concluded Mr. Schwartz.

Conference Call

Dorel Industries Inc. will hold a conference call to discuss these results on Friday, May 8, 2026 at 11:00 AM Eastern Time. Interested parties can join the call by dialing 1-833-752-3231. The conference call can also be accessed via live webcast at http://www.dorel.com. If you are unable to call in at this time, you may access a recording of the meeting by calling 1-855-669-9658 and entering the passcode 6444797 on your phone. This recording will be available on Friday, May 8, 2026 as of 2:30 PM until 11:59 PM on Friday, May 15, 2026.

Unaudited condensed consolidated interim financial statements as at March 31, 2026 will be available on the Company's website, www.dorel.com, and will be available through the SEDAR+ website.

Profile

Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Safety 1st and Tiny Love, complemented by regional brands such as BebeConfort, Cosco, Mother’s Choice and Infanti. Dorel Home, with its comprehensive e-commerce platform and brick-and-mortar distribution network, markets a wide assortment of furniture. Dorel has annual sales of US$1.2 billion and employs approximately 2,900 people in facilities located in twenty-two countries worldwide.

Caution Regarding Forward-Looking Statements

Certain statements included in this press release may constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties, including statements regarding the substantial reduction in size of Dorel’s Home segment, the impact of the macro-economic environment, including inflationary pressures, changes in consumer spending, exchange rate fluctuations, the imposition of tariffs, and interest rate fluctuations on the Company’s business, financial position and operations, and are based on several assumptions which give rise to the possibility that actual results could differ materially from the Company’s expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, the Company cannot guarantee that any forward-looking statement will materialize, or if any of them do, what benefits the Company will derive from them including statements relating to the substantial reduction in the size of the Home segment. Forward-looking statements are provided in this press release for the purpose of giving information about management’s current expectations and plans and allowing investors and others to get a better understanding of the Company’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.

Forward-looking statements made in this press release are based on a number of assumptions that the Company believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations expressed in or implied by the forward-looking statements include:

• general economic and financial conditions, including those resulting from the current high inflationary environment;
• changes in applicable laws or regulations;
• changes in product costs and supply channels, including disruption of the Company’s supply chain resulting from the macro-economic environment;
• foreign currency fluctuations, including high levels of volatility in foreign currencies with respect to the US dollar reflecting uncertainties related to the macro-economic environment;
• the effect of tariffs on imported goods;
• customer and credit risk, including the concentration of revenues with a small number of customers;
• there is no certainty that benefits expected to be derived from the substantial reduction in size of Dorel’s Home segment will occur;
• costs associated with product liability;
• changes in income tax legislation or the interpretation or application of those rules;
• the continued ability to develop products and support brand names;
• changes in the regulatory environment;
• outbreak of public health crises that could adversely affect global economies and financial markets, resulting in an economic downturn which could be for a prolonged period of time and have a material adverse effect on the demand for the Company’s products and on its business, financial condition and results of operations;
• the effect of international conflicts on the Company’s sales;
• continued access to capital resources, including compliance by the Company with all of the covenants under its senior secured asset based revolving credit facility and term loan facility, and the related costs of borrowing, all of which may be adversely impacted by the macro-economic environment;
• failures related to information technology systems;
• changes in assumptions in the valuation of other intangible assets and any future decline in market capitalization;
• there being no certainty that the Company will declare any dividend in the future;
• increased exposure to cybersecurity risks as a result of remote work by the Company’s employees;
• the Company’s ability to protect its current and future technologies and products and to defend its intellectual property rights;
• potential damage to the Company’s reputation; and
• the effect of climate change on the Company.
  
  

These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in the Company’s annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors set out in the previously mentioned documents are expressly incorporated by reference herein in their entirety.

The Company cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial may also have a material adverse effect on the Company’s business, financial condition, or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

All figures in the tables below are in thousands of US $, except per share amounts.

Definition and Reconciliation of Non-GAAP Financial Ratios and Measures

Dorel presents in this press release certain non-GAAP financial ratios and measures, as described below. These non-GAAP financial ratios and measures do not have a standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other issuers. These non-GAAP financial ratios and measures should not be considered in isolation or as a substitute for a measure prepared in accordance with IFRS. Contained within this press release are reconciliations of the non-GAAP financial ratios and measures to the most directly comparable financial measures calculated in accordance with IFRS.

Dorel believes that the non-GAAP financial ratios and measures used in this press release provide investors with additional information to analyze its results and to measure its financial performance by excluding the variation caused by certain items that Dorel believes do not reflect its core business performance and provides better comparability between the periods presented. Excluding these items does not imply they are necessarily non-recurring. The non-GAAP financial measures are also used by management to assess Dorel's financial performance and to make operating and strategic decisions.

Adjustments to non-GAAP financial ratios and measures
As noted above, certain of our non-GAAP financial measures and ratios exclude the variation caused by certain adjustments that affect the comparability of Dorel’s financial results and could potentially distort the analysis of trends in its business performance. Adjustments which impact more than one non-GAAP financial ratio and measure are explained below.

Restructuring costs
Restructuring costs are comprised of costs directly related to significant exit activities, including the sale of manufacturing facilities, closure of businesses, reorganization, optimization, transformation, and consolidation to improve the competitive position of the Company in the marketplace and to reduce costs and bring efficiencies, and acquisition-related costs in connection with business acquisitions. Restructuring costs are included as an adjustment of adjusted gross profit, adjusted gross margin, adjusted operating profit (loss), adjusted net income (loss) and adjusted diluted earnings (loss) per share. Restructuring costs were US$2.6 million for the three months ended March 31, 2026 (2025 – US$1.6 million). From this amount, restructuring costs recorded within cost of sales were US$0.5 million for the three months ended March 31, 2026 (2025 – US$0.4 million). Refer to the section “Restructuring costs” in the MD&A for more details.

Adjusted gross profit and adjusted gross margin
Adjusted gross profit is calculated as gross profit excluding the impact of restructuring costs. Adjusted gross margin is a non-GAAP ratio and is calculated as adjusted gross profit divided by revenue. Dorel uses adjusted gross profit and adjusted gross margin to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel also uses adjusted gross profit and adjusted gross margin on a segment basis to measure its performance at the segment level. Dorel excludes this item because it affects the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted gross profit and adjusted gross margin to measure the business performance of the Company as a whole and at the segment level from one period to the next, without the variation caused by the impact of the restructuring costs. Excluding this item does not imply it is necessarily non-recurring. These ratios and measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies.

Adjusted operating profit (loss)
Adjusted operating profit (loss) is calculated as operating profit (loss) excluding the impact of restructuring costs. Adjusted operating profit (loss) also excludes impairment loss on goodwill. Management uses adjusted operating profit (loss) to measure its performance from one period to the next, without the variation caused by the impact of the items described above. Dorel also uses adjusted operating profit (loss) on a segment basis to measure its performance at the segment level. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted operating profit (loss) to measure the business performance of the Company as a whole and at the segment level from one period to the next, without the variation caused by the impact of the restructuring costs and impairment loss on goodwill. Excluding these items does not imply they are necessarily non-recurring. This measure does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to a similar measure presented by other companies.

Adjusted net income (loss) and adjusted diluted earnings (loss) per share
Adjusted net income (loss) is calculated as net income (loss) excluding the impact of restructuring costs and impairment loss on goodwill, as well as income taxes expense (recovery) relating to the adjustments above. Adjusted diluted earnings (loss) per share is a non-GAAP ratio and is calculated as adjusted net income (loss) divided by the weighted average number of diluted shares. Management uses adjusted net income (loss) and adjusted diluted earnings (loss) per share to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted net income (loss) and adjusted diluted earnings (loss) per share to measure the business performance of the Company from one period to the next. Excluding these items does not imply they are necessarily non-recurring. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies. 

Organic revenue growth (decline) and adjusted organic revenue growth (decline)
Organic revenue growth (decline) is calculated as revenue growth (decline) compared to the previous period, excluding the impact of varying foreign exchange rates. Adjusted organic revenue growth (decline) is calculated as revenue growth (decline) compared to the previous period, excluding the impact of varying foreign exchange rates and the impact of the acquired businesses for the first year of operation and the sale of divisions. Management uses organic revenue growth (decline) and adjusted organic revenue growth (decline) to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use organic revenue growth (decline) and adjusted organic revenue growth (decline) to measure the business performance of the Company as a whole and at the segment level from one period to the next. Excluding these items does not imply they are necessarily non-recurring. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies.