Dorel Industries Inc.

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Dorel Industries' first quarter 2026 results conference call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session. To join the question queue, you may press star and then one using a telephone keypad. Should you need assistance during the conference, you may reach an operator by pressing star and zero. 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, May 8th, 2026. I'd now like to turn the floor over to Martin Schwartz, President and CEO. Please go ahead.

Thank you. Good morning, and thank you for joining us for the REL's first quarter earnings call for the period ended March 31st, 2026. With me today are Jeffrey Schwartz, CFO, and Jason Kwasnick, Vice President of Finance. We'll take your questions following our comments. Please note that all figures mentioned during this call are in U.S. dollars. The REL Juvenile delivered a solid first quarter earnings 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's juvenile diversified portfolio and its positioning for substantial 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 the lack of success in certain traditional furniture categories. As evidenced by the recent announced closure of three 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. This will allow us to return to profitability and provide a clearer foundation for future success as the year progresses. As always, Jeffrey will walk you through our results, but first I want to add some color to our press release, starting with the juvenile segment. The juvenile segment delivered another quarter of improved earnings with markets outside of the U.S. leading the way. This was the case through most of 2025 as well. despite all markets facing challenges brought on by various geopolitical events. These conditions were generally made worse in the first quarter with the heightened tension in the Middle East at the end of February. There is no question that when costs rise for consumers, as they have around the world with the surge in oil prices and the general uncertainty brought on by recent events, it impacts consumer behavior. This impact was most acute in the U.S. market, and the positive momentum we saw in the fourth quarter last year slowed down, reflecting continued softness in the juvenile category, following tariff-related disruptions, heightened promotional pressure, and cautious consumer spending. We have responded by aligning the cost structure to a lower demand environment. While the U.S. market remains challenging, we continue to focus on targeted innovation portfolio optimization, and selective customer programs to support longer-term recovery. This evidenced by recognition from several industry organizations. Namely, Forbes recognized Maxi Cosi Casea as the best smart baby swing. Wired featured Maxi Cosi Cani 4-in-1 car seat as best baby gear. And Consumer Reports recognizing the Seat C-Pro 360 Baby Monitor, the Starling Bassinet, and the Iora Bedside Bassinet as category leaders. Recognition like this, while satisfying, does not always lead to higher sales. But fortunately, in this case, it only reinforces that our teams are doing a great job with our Maxi Cosi brand and is leading to positive financial results. This is our flagship brand around the world with a growing presence in North America. And in the quarter, sales were up over 20% versus prior year, and now represents over 40% of the juvenile segment sales. Outside of the US, the picture is very positive. The strength of our various divisions has allowed us to overcome many of the same challenges in the United States. In Europe, the REL juvenile delivered a strong quarter with organic revenue increasing. driven primarily by robust demand for Maxi Cosi car seats across specialty retail, mass merchants, and e-commerce platforms. Notably, in Portugal, Maxi Cosi received a 2026 Consumer Choice Award in both the baby stroller and car seat categories. This marks the brand's first win since entering the Portuguese market four years ago, demonstrating successful market penetration and growing consumer trust in a competitive European market. Other standouts in our international markets include Australia, New Zealand, which delivered robust double-digit revenue growth, and in export markets like China, Turkey, and South Korea, supported by continued leadership in rotating car seat technology and strong customer execution. Latin America markets continue to execute structural improvements. In Chile, the company advanced its deliberate shift towards higher margin digital and distribution channels, while rationalizing its physical retail footprint. Peru delivered strong revenue growth supported by direct-to-consumer performance, while Mexico recorded significant year-over-year growth across all major customers and product categories. Brazil remains a consistent contributor to revenues and earnings as they continue to lead the local market in innovation and design. And finally, in March, the REL Juvenile hosted its annual Global Customer Conference in 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 encourage hands-on engagement and real-time feedback, reinforcing strong customer confidence and generating positive commercial momentum, particularly within the nursery furniture portfolio. And now for the rail home. As we discussed in detail in our year-end conference call in March, we concluded 2025 with the majority of our restructuring complete with certain legacy costs being targeted for elimination in 2026. These last steps were identified as critical to us returning to profitability by the end of 26, and they remain so. However, the slow start to the year has forced us to re-examine our business model and we expect further changes to be successful and profitable again. Our core Costco business remains strong, but getting certain traditional everyday living furniture categories back to the sales level that we expected is not working. Therefore, beyond the needed elimination of our legacy costs, we will now focus on less categories and work with our long-term retail partners on known winning product categories. We will focus on items and channels with the quickest return and the lowest cash requirements. As of now, our teams continue to work on what that will look like, and it is expected that by the end of the second quarter, we will have a clearer picture of what the future looks like. I'll now ask Jeffrey to review the financials.

Jeffrey Siedman- Thank you, Martin.