Page 8 - GurpreetSingh_AnnualReport_Dorel

OUTLOOK

Dorel’s three business segments are positioned to improve earnings this year. We remain
quite bullish on Dorel Home’s prospects and as explained above, have made the necessary
investments to grow further. Given the continual growth of the e-commerce channel, we
expect a further increase in earnings, but at a slower pace.
Changes being made at Dorel Juvenile to deliver improvements in speeding product to
market, driving sales, while also controlling costs, should translate into improved earn-
ings. Last year’s exceptionally high product liability costs are unlikely to recur. Rising
commodity prices, currency and the shrinking U.S. brick and mortar channels are a risk
for the segment, but we are well positioned to manage these challenges as they arise.
Dorel Sports has worked throughout 2016 to position itself for an earnings rebound this
year. Excess industry inventories have been reduced and rampant discounting should not
be repeated. Improvements in cost control and supply chain management are expected to
contribute to operating profit, helping to offset any potential sales softness.
On behalf of senior management, I wish to thank our employees for their hard work
throughout the year. Continued efforts to further transform Dorel are required this year in
order to move the needle. I have every confidence we can execute on the planned strate-
gies and that we will be able to further reward our shareholders. My thanks as well to our
Board of Directors for their sustained support and guidance.

Martin Schwartz
President and Chief Executive Officer

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