MADISON, WI (BRAIN)—Pacific Cycle's third quarter revenue was up 2.3 percent to $81.3 million from $79.4 million a year ago.
Earnings from operations declined 10 percent to $6 million from $6.6 million a year ago. For the nine months, revenue totaled $288.9 million, up 9.6 percent from $263.8 million last year. Earnings from operations rose 35.2 percent to $27.1 million, compared to $20.1 million last year.
The year-to-date progress underlines the benefits of Pacific’s strategy of strong and exclusive branding. The segment has broadened its product lines in 2007; nonetheless the majority of the revenue growth this year is due to an improvement in its core bicycle business with sales increasing to both new and existing customers in the mass merchant and independent bicycle dealer (IBD) network. Additional dealers continue to join the IBD network, an endorsement of Pacific’s decision to dedicate its GT line exclusively to this channel.
