Hopeful Signs for Dorel Sports but Challenges for GoPro as Third Quarter Revenues Released

Nov 13, 2019
by James Smurthwaite  
We're now well into the fourth quarter of the year and that means that revenues have been released for the third quarter. Here are two interesting stories we picked up on from Dorel Industries and GoPro.

Dorel Industries

In October, we reported on Dorel Industries' decision to suspend its dividend due to tariffs impacting revenue, however it seems like the impact hasn't been felt on the bike side of the company.

Dorel Sports, the cycling wing of Dorel Industries, has reported a 14.2% increase in revenue this quarter, up from $219 million to $250 million compared to the same period last year. This is the first double-digit growth in revenue for the company in five years. Dorel Sports includes brands such as Cannondale and GT and credits Cannondale's 2020 lineup, especially its ebikes in Europe, for the growth. Caloi, its Brazilian bike business, also delivered strong double-digit revenue growth thanks to its Yellow Bike Sharing program.

bigquotesAs expected and previously communicated, the third quarter was a difficult one primarily due to various issues related to U.S. imposed tariffs. We raised prices in the quarter and this has had several negative consequences. Retailers altered their purchasing decisions, which resulted in a considerable product mix imbalance. In addition, some of our large U.S. customers delayed holiday orders from September to October.

All Dorel segments have done an excellent job of holding the line on most expenses and creative product development has resulted in many new exciting introductions. Cannondale’s new line-up is driving Cycling Sports Group success. Margin and profitability are not yet where we want them to be, but the signs are positive and progress is being made.
Martin Schwartz, president and CEO

Dorel Industries as a whole saw earnings jump 2.3% in the same period from $670.4 million a year ago to $685.7 million in 2019 however the operating profit was down from $7 million to $6 million.

Schwartz was confident the growth would continue into the fourth quarter, concluding: "With the shift of orders at Pacific Cycle from the third to the fourth quarter, this provides the confidence that the segment will deliver a solid fourth quarter versus the prior year in both sales and adjusted operating profits.”

Dorel's stock remains at record low levels.

Read the report in full here.


GoPro's revenue fell 54.1% in the third quarter of 2019 however its stock rose as it still outperformed gloomy predictions from analysts. This continues a rocky period for GoPro that includes the closure of its drone business, falling revenues and the reports that it had hired JPMorgan to explore options for a sale - although this was later denied.

GoPro's revenue was $131 million for the third quarter, down from $285 million last year. However, this was actually $5 million more than expected, which caused a small rise in its value.

In October, GoPro had warned that revenue would fall following a production delay with the new Hero 8 cameras, which shifted the bulk of its sales from the third quarter to the fourth quarter. Unfortunately, GoPro had already announced the camera, which meant demand for the Hero 7 fell as it was no longer the brand's flagship camera. Forecasted growth was cut from 9%-12% to just 6%-9% and management also reduced the midpoint of its adjusted gross margin for the second half of 2019 from 37.5% to 36.5%.

GoPro is now expecting a successful fourth quarter as the Hero 8 hits the market properly. It claims that the Hero 8 and Max are: "generating the highest positive social sentiment metrics of any new GoPro and are setting record unit sales for new cameras at GoPro.com". It also highlighted a 21% growth in subscribers for GoPro Plus, a rise of 21% over the quarter.


  • 264 7
 That's because everyone bought a Go-Pro in 2011 and quickly learned that they turn footage of a shitty 5 foot jump into footage of an even shittier 3 foot jump that no one (including the owner) really wants to watch.
  • 17 5
 Which camera makes de footage look more realistic or this is something all cameras suffer from?
  • 3 0
  • 132 6
 It's like when you try and film a porn with your girlfriend, you think its gonna be awesome but then you watch it...
  • 63 0
 @Tmackstab: Looks small, not hard, and not nearly as intense as you describe it. F*ckin GoPro effect, man.
  • 33 3
 @Tmackstab: it's worst when you try to film a porn without girlfriend and you have to do alone Big Grin
  • 10 1
 A problem with depth is not a camera issue unique to GoPro...
  • 54 5
 @Tmackstab: The one I filmed with her is pretty awesome.
  • 3 0
 @Tmackstab: you owe me a pint. just spat it over my laptop Big Grin
  • 12 2
 @Teslas4Trump: notice I said 'your' and not 'my'
  • 2 0
 @maddiver: haha anytime brother!
  • 1 1
 And for majority, they'll simply use their phone or the go pro they already have. Very niche
  • 4 0
 @Tmackstab: you also said 'you' instead of 'I'.
  • 3 0
 @Alexh1983: There's still a bike-porn though Wink
  • 5 0
 @Tmackstab: It has its positives though, like finding out how hairy your ass crack is.
  • 5 0
 @jclnv: sometimes ignorance is bliss.
  • 2 0
 @Tmackstab: In my best Sean Connery accent, “that’sh not what yur muther shaid.”
  • 60 1
 Get ready for every pinkbike user to suddenly become an economist
  • 120 0
 Everyone setting aside their engineering hat and dusting off that economics degree.
  • 10 0
 @kookseverywhere: Do economists preface their statements with "I'm an economist..."?
  • 3 0
 @MTBrent: if you have to ask...
  • 5 2
 @kookseverywhere: Hey, I actually do have an economics degree! But ya its covered in dust and never used.
  • 13 0
 @MTBrent: No, its "as an economist, heres why waki is wrong...."
  • 6 0
 @MTBrent: you don’t have to. People will figure it out as soon as they see that what you’re saying is wrong.
  • 4 0
 Rather than invest my money in starting a bike company that makes t-shirts and trucker hats I’m going to invest in the high performing stocks of the bicycle industry that I know even less about. Maybe even some options because I saw a guy on Instagram who used those to buy a Porsche
  • 2 0
 Actual economists don't have a clue, either, because every jobs report is "more" or "less than expected."
  • 2 0
 I'll stick to dentistry
  • 2 0
 At least now we’ll be able to tell the engineers from economists.

“As an engineer...”
“...ceteris paribus”
  • 1 0
 @Hayek: Your username. Is that an economist joke?
  • 1 0
 @MTBrent: no we just tell you that "we do it with models"
  • 1 0
 @TwoNGlenn: you forgot "all else equaL..."
  • 1 0
 @RONDAL: that's what " ceteris paribus " means...
  • 32 1
 “Hey guys, check this sick GoPro footage of this crazy vertical chute!”

Shows buddies a clip that looks like flat single track.

Yep, no surprise on the GoPro front.
  • 9 7
 Probably because that dude was riding slightly not flat single track and playing it off as a chute.
  • 5 0
 @scott-townes: this. If you're riding gnarly shit, chances are your "buddies" can appreciate the footage even if some features get flattended out...

Plus, if something looks good on film you know you went big!
  • 2 0
 @nvranka: I usually think POV is greatly overvalued and overused - but this made me change my mind (and see 3:10 for that GoPro effect... that drop did not look anywhere near that big when they first showed it!):

  • 1 0
 @Bartimaeus: Like any filmography, if done right by someone whos really good it can look and feel amazing.
  • 26 0
 The problem with go pros seems pretty simple. The products are pretty fucking awesome, but most people just have no use for the incremental upgrades that are offered model to model. For people who produce content for a living the upgrades are likely worth it, but for the recreational user, which I'm sure makes up the bulk of their business, the model from 2015 is probably still more than sufficient for their use.
  • 4 1
 My 3+ Black still takes great footage in 4k.
  • 1 0
 Yep. Hero 5: After choosing my video settings on the very first use, it's QuikCapture (On) and OFF from then on.
  • 1 1
 Totally correct. And does average mtb rider has significant advantage of all incremental changes in his ever changing up-to-date bikes?
  • 1 0
 i use the hero 5 for work, its good, nothing before the 8 has made me think time to change....

im still on the fence.... do I need it?
  • 8 0
 @fssphotography: Hypersmooth, its a game changer, no more Gimbals.
  • 4 1
 @fluider: Obviously, the new 29.8mm bottom bracket is allowing me to ride shit I never could with a flimsy 30mm one.
  • 1 1
 Well that statement is true to almost anything we use/buy these days. Bikes, laptops, iPhones, cars. Everything has incremental upgrades and we could all be perfectly fine with the model from yesteryear. But we buy that sh!t anyway, we want the shiniest and newest and the most bestest.
  • 1 0
 @fluider: Yea that too, I would say no to that also. I have two 26" bikes from 2012 and 2015 respectively, and a 29er from 2015 that all work just great still.
  • 1 0
 @i-am-lp: You are right that you could apply it to almost anything, but there are obviously varying degrees to it depending on what type of product you are talking about. And I think this particular industry is hit particularly hard by it.

Cars are different because they are something people use every day and and are a necessity for most people, not a luxury. Same goes for electronics like phones and laptops, a much different story. These items literally become obsolete and stop working properly beyond a certain age. Batteries degrade, storage can't handle newer software and files, etc.
  • 3 0
 @nwmlarge: Totally agree the Hypersmooth is amazing and I got rid of my gimbal now too!
  • 28 0
 “I could ride that.” - rider after watching Carson Storch’s Rampage run GoPro footage.
  • 1 1
 Number 1 comment here in my books
  • 15 3
 GoPro is getting hurt by tons of inexpensive knockoffs that are 1/4 to 1/8 of the price. One of the unforeseen consequences of outsourcing to China is that you have no protection of your intellectual property in China.
  • 9 0
 Also the fact that you can buy a used Hero 4 Black with 60+ attachments on eBay for $150.
  • 2 0
 I honestly can't remember the last time I've even seen a POV camera out in public. I think GoPro is a sick company, but they don't seem all that practical anymore for the general population.
  • 3 3
 The knock-offs will have very little to do with the fact they're made in China. Anybody who wanted to could buy a gopro, take it apart and then decide how they might make their own could. Even if it was made in the US there would still be cheap gopro knock offs. You can't really stop people copying a design because it's there for all to see, so long as you change it a bit you're probably not even in direct infringement.

If your company had a unique manufacturing process or a special rubber, plastic, alloy etc that used a secret ingredient (which I don't think GoPro do - they're a design company not a materials or manufacturing company) that's when you would be unwise to outsource your manufacturing to China as that secret would be unlikely to stay secret for long.
  • 2 0
 Yep. I bought one of amazon for like $50 with 4k and image stabilization. For filming rides every once in a while who no one else will see, it's good enough.
  • 1 1
 unforeseen? lol yeah right
  • 13 2
 The Hero8 is pretty amazing. With the late release I expect Q4 revenues to rebound and hold steady into the spring.
  • 49 0
 Whoa there. We be mountain bikers. Save that fancy talk for the Wall Street Journal.
  • 11 1
 @garrettstories: Agreed - highfalutin' talk like that should live behind a paywall.
  • 3 0
 @garrettstories: I think that he just swapped lives with someone else. It might be Billy Ray Valentine from Trading Places.
  • 5 0
 Im still gonna short the stock and slap that ask.
  • 7 0
 Sure, but what about Q5??
  • 4 0
 @tacklingdummy: The prices of pork belly are on the rise, too.
  • 5 0
 Every year- "Nah, it's not that much better than the last Go-Pro. I'll wait til they go on sale."
Later that year- "Nah, not much of a sale. Might as well wait for the new one in a month."
  • 1 0
 exactly! had original hero from 2010 than I thought the above than Hero 4 silver was presented and it was a deal braker for me so I went for it, than again same process of thinking till the introduction of Hero 7 which is my current GoPro....
  • 5 2
 I still have a GoPro Hero 5 Black in the box, unused, lying around here somewhere, together with a chestmount and tripod in similar condition. Turns out that when I go riding, I just want to go riding and not fiddle with a camera setup, angles and whatnot. Never even got round to installing the app on my phone. That instant gratification monkey set me back about €350...
  • 9 0
 @NinetySixBikes I'll give you $35 american dollarydoos for it
  • 5 0
 Agreed, monkeys are the real culprits, swindling us out of money so they can buy cat food.
  • 1 0
 @everythingsucks: f*ck dude, that really made me laugh.
  • 5 0
 I am an engineer and an economist so I feel that the camera is poorly designed and the product has run its course and they should have sold the company two years agoSmile
  • 2 0
 Lotsa MTB riders bought a Session 5 and put up with the absolutely horrible software because of the small size and don't see any reason to buy something bigger that smooths out all the bumps. Bumps are all we have to show we're mountain biking since the terrain is GoFlat.
  • 9 0
 Advice for GoPro: make a session 8 and you’ll make it rain.
  • 2 0
 @islandforlife: Yep the Session form-factor is a winner - it just needs the new chips.
  • 5 1
 Interesting but why single out these two companies earnings reports? Is this a Pinkbike area of reporting now? Not complaining, but seems a departure from normal content.
  • 1 0
 Well, as a lot of us are GoPro users, it would seem relevant to know how a company is doing financially before you spend a lot of money on their product. Would you buy a GoPro 10 for full price if you found out the company was about to go bankrupt and you'd have no customer support?
  • 1 2
 It's November, they're scraping the bottom of the barrel for bike stuff to report.
  • 7 0
 Wooo earnings reports!!
  • 2 0
 I still use my hero 4 black, with the right software suite its super easy to stabilize and upgrade the image quality, no point shelling out for the 7, and if Paul The Punter is anyone to listen to, which I believe he is due to being a professional Youtuber, the 8 is really not that different to the 7.
  • 2 0
 My hero 3 still rocks, considered the 7 for the smooth footage but everyone I know who owns one moans like hell about it glitching.

Not to mention doing away with GoPro studio and the shitty GoPro app is useless.

Makes cameras that work and include a half decent editing software and I’d buy one
  • 2 1
 looking at what I should do to get my pictures from the camera via the app to the smartphone from the app on my go pro, and that for some reason that requites gps...I'm not surprised, to say the least...great pic quality though... haha
  • 4 0
 DJI action Camera is hot on their heels to. I have been using that camera and the stabilisation is amazing. won me over
  • 1 0
 I would be very interested in reading a list of MTB brands, primarily bicycle mfgs, owned by big corps or by private equities via some corps. Because it seems the vast majority of this business can exist only thank to being owned by much bigger companies. This sort has made huge progress in tha last 20 years, but it also is not the same as it used to be and as it pretends to be.
  • 1 0
 Because they are mtb related. But also because, as they mentioned, Dorel was already in the news with not so good news and now it’s news that amongst the bad news it had some good news to report. Regarding GoPro, it’s significant bad news = worth talking about.
  • 1 0
 No-one wants to pay £400 every year for a new camera, just to show your mum and your Mrs the footage. If you're a 'Youtuber', they're amazing things. But most of them are sponsored and they give them to them... Maybe that's where their revenue has gone, giving people that already get free stuff more free stuff. I'd soon rather spend my £400 on something that'll make my bike nicer, clothing or my new thing - tools!
  • 1 0
 The best thing is when they rebadge their old stuff but cripple it via software and call it new.

I got the "Hero" last year on sale for $100 then flashed it back to a Hero 5 Black. Got back 4k and considerably cheaper than their so called "new budget" offerings at the time.
  • 1 0
 I love my hero 7 black for the hypersmooth, and get a lot of value out of watching my own POV footage from my local DH and freeridy trails, even if it makes my meager sends looks even skimpier...the new editor though, Quik, totally sucks, and indicated to me they probably planned to sell the company, having abandoned development on the old studio...
  • 1 0
 in Romanian, the name Dorel, represents that blue collar worker (usually a construction guy) that is a bit lazy, also not very bright. You know, the guy that cuts the power to a neighborhood while digging a ditch, or the one that sleeps around the jobsite with every opportunity.
  • 4 0
 I was doing a 8 foot drop and it made it look like i hopped off a curb
  • 3 0
 So Cannondale IS relevant? Or E-bikes are relevant? Or both? I feel confused and betrayed by this news.
  • 1 0
 I though do have a few questions about the go pro.

1) Does it still randomly drain the battery even when off? forcing you to remove it?

2) does it have same form factor allowing use of the gimbal?
  • 1 0
 I just bought an 8 after borrowing a buddy's 7 to use in Whistler...I wanted to see how the hypersmooth worked as I normally use a GoPro 6 with the Karma Grip gimbal. It was amazing and I will no longer be using a gimbal it's that good! Your battery question I'm not sure about.
  • 1 1
 With all the options out there from decent for the price and great fro the price like the osmo action, gopro is not king anymore. Their downfall came when they tried to release that shatty drone that failed almost immediately. Im wondering if thats why DJI came out with the action camera to take it to em for trying to come out with a drone. I bought an osmo action and that rocksteady is better than hypersmooth IMO. and all the gopro mounts I have work with it also. My gopro always frustrated me. From the crappy battery that never lasted very long, to the "new and improved" models that would come out as soon as you bought one a few months before, I was done with gopro and wanted to find something else. The Action has worked awesome, and its tough as hell. Ran it over with my van and the camera still works, Just had to replace the cracked lens. I dropped a GoPro 3 from a ledge once and it just about blew open and failed to work.
  • 2 0
 Positive sentiment? I bought a Max and all it produces is unusable green blobs. It's a brick.
  • 2 0
 @wakidesigns where are you
  • 8 8
 As a financial analyst, I can definitively say this is one of the worst articles to ever be posted on Pinkbike...
  • 2 1
 First world problems....hopefully the price goes down!!
  • 1 0
 My $30 Chinese knock offs just as good!
  • 7 8
 Is this the best article title you can contrive James Smurthwaite and PinkBike?
  • 3 2
 Go Pro editor SUCKS!!!

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