Aug 9 (Reuters) - Canada’s Dorel Industries (DIIb.TO), a distributor of children’s products and bicycles, reported a 30 percent drop in second-quarter profit, and warned that the second half of the year will remain tough for its juvenile segment.
Stock market turbulence and fears of a double-dip recession are further depressing already weak consumer confidence and undermining the fragile retail environment, the company said.
“Given the highly conservative spending of today’s typical consumer, initiating price increases to our customers is a challenge, particularly within our juvenile segment in the U.S.,” Chief Executive Martin Schwartz said in a statement.
April-June net income fell to $23.0 million, or 70 cents a share, from $32.9 million, or 99 cents a share, a year ago.
Total revenue for the Montreal-based company, whose products include kids car seats, strollers and ready-to-assemble furniture, rose 2 percent to $619 million. Revenue at the juvenile segment fell 6 percent.
Shares of the company, whose brands include Cosco and Safety 1st, closed at C$25.72, a 2-year low, on Monday on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore, Editing by Ian Geoghegan)