The parent of the Cannondale, Schwinn, Mongoose, GT, Caloi and Sugoi brands saw operating income fall 41% to $4,965,000 from $8,423,000 in the final quarter on 7% lower revenue to $235,253,000 from $253,694,000. Sales fell 15% excluding currency effects and the revenue gross-up from the transition of the Cycling Sports Group’s international business from a licensing model to a distribution platform. North American dealers were working to reduce inventory which pushed some Q4 sales into Q1 ’17. According to the Bicycle Products Supplier Association data, U.S. supplier inventories are down 24% and retailer inventory levels are down 6%.
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