Dorel Industries Inc.

Welcome to Durell Industries' third quarter 2023 results conference call. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question and answer session. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then 0. Before turning the meeting over to management, Please be advised that this conference call will contain statements that are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. I would like to remind everyone that this conference call is being recorded today, November 3rd, 2023. I would now like to turn the call over to Martin Schwartz, President and CEO. Please go ahead.

Okay. Good afternoon, and thank you all for joining us. for Darrell's third quarter earnings call for the period ended September 30th. Joining me are Jeffrey Schwartz, CFO, and Frank Rana, VP of Finance. We'll take your questions following our comments, and all figures mentioned during this call are in U.S. dollars. Darrell Juvenile delivered double-digit revenue growth and an impressive turnaround in earnings. Their new products are clearly winning with consumers, and our business is gaining market share in an industry that is down from last year. Durell home revenues continue to improve for the third quarter with positive indicators at brick and mortar. Considering the continuing challenges for consumer product companies, I'm pleased to say that our two segments are navigating positively through, though we recognize the need for continuing improvement. A further positive is that retailers selling our products now have far less inventory on hand, and our own inventory levels are at their lowest in two years. The vast majority of the high-cost inventory from last year has been sold, and current lower-cost inventory is contributing to improving margins. Looking specifically at our two segments, The REL Juvenile posted year-over-year and sequential improvement in both the top and bottom lines. Operating profit would have been even better had it not been for the currency impact in Europe. New products are continuing to drive sales, as was evidenced during September's Cologne Juvenile Product Show. We built excitement with our teams and connected strongly with our customers from all over the world, writing the most orders ever at Cologne. The new Mica 360 Pro was unveiled, a seat that can be used from birth till four years old. It's the latest addition to the groundbreaking Maxi-Cosi 360 Pro family, featuring Dorel's Sly-Tek technology. In addition to the cologne show, Julie attended several local European fairs during Q3. Among the items unveiled was a new Maxi-Cosi 3-in-1 stroller in what is termed the comfort segment. There is a considerable market for this latest entry as it's at the right price point with all the features consumers are looking for. Maxi Cosi now offers parents a wide range, including car seats, strollers, home equipment, and connected products to take them through their parenting journey. These launches represent continuous improvement in the European product portfolio, allowing juvenile to retake market share something we are clearly doing. Another exciting development was Juvenile's recent partnership with BabyList at the grand opening of their first flagship showroom in Beverly Hills. The showroom offers a guided registry and product showcase where Maxi Cosi, Tiny Love, and Safety First take center stage with dedicated displays just as you enter the store. This partnership is a testament to Dorrell Juvenile's commitment to innovation, providing parents with the opportunity to explore our products. Additional launches are planned to further broaden