Escalade Inc. reported sales grew 8 percent while operating earnings expanded 11 percent.
“Our second quarter overcame new product pipeline fills from prior year and saw growth in our fitness and basketball product categories, resulting in revenue growth of 8 percent” stated Dave Fetherman, president and CEO of Escalade Inc. “Gross margin for the quarter was negatively impacted by our archery category, as we transition our crossbow product line to remain focused on providing a compelling product to the consumer. We are optimistic about the second half of the year. As retailers continue to focus on supplier consolidation within the categories in which we compete, we should be given more opportunities to increase our business during the remainder of this year and into 2018. We are well positioned with our e-commerce partners to meet the shift in consumer buying habits to purchase online.”
Net sales for the second quarter of 2017 were $52.4 million compared to net sales of $48.5 million for the same quarter in 2016, an increase of $3.9 million or 8 percent.
Gross margin ratio for the second quarter of 2017 decreased to 25 percent, compared to 26 percent for the same period in the prior year.
Selling, general and administrative expenses (SG&A) were $9.3 million for the quarter compared to $8.9 million for the same period in the prior year, an increase of $0.4 million or 4 percent. SG&A, as a percent of sales, remained flat in the current year compared to the same period prior year. Operating income rose 11 percent to $3.33 million from $3 million.
Other income for the second quarter of 2017 was adversely impacted from the operating results of the company’s 50 percent ownership in STIGA, a Swedish entity.
Net income for the second quarter of 2017 was flat compared to the same period in 2016 at $2.1 million, or 15 cents diluted earnings per share.
The company announced a quarterly dividend of 11.5 cents per share would be paid to all shareholders of record on September 11, 2017 and disbursed on September 18, 2017.
Escalade’s brands include Bear Archery, Trophy Ridge, Whisker Biscuit and Cajun Bowfishing in its archery segment; Stiga, Ping-Pong and Prince in table tennis; Goalrilla, Goaliath and Silverback in basketball goals; Woodplay and ChildLife in Play Systems; The Step and USWeight in fitness; Atomic, American Legend and Redline in game tables (hockey and soccer); Mizerak, Minnesota Fats, Lucasi, Purex, Rage and Players in billiards accessories; Unicorn, Accudart, Arachnid, Nodor and Winmau in darting and Zume Games and Pickleball Now in outdoor games.
Photo courtesy Bear Archery
