Easton Bell Sports reported in a filing with the SEC that net sales for the third quarter of 2006 increased 81.1% to $186.5 million from $102.9 million in the year-ago quarter. This increase is primarily attributable to $62.8 million in net sales from to Easton Sports with $56.7 million attributable to Team Sports and $6.2 million attributable to Action Sports. Team Sports net sales increased 154.1% as compared to the prior year. In addition to the acquisition of Easton Sports, other factors contributing to the increase in Team Sports net sales included increased football helmet and apparel sales. Action Sports net sales increased 30.8% when compared to the prior year. Action Sports sales increased primarily due to the addition of Easton Sports cycling business and increased sales of helmets and accessories.
For the third quarter, gross profit 36.7% of net sales, rising 30 basis points from 36.4% of net sales for the third fiscal quarter of the prior year. Team Sports gross profit decreased 4.2 percentage points to 39.2% primarily due to the acquisition of Easton Sports. Action Sports gross profit of 33.3% of net sales increased 1.7 percentage points compared to the third fiscal quarter of the prior year primarily due to increased sales in helmets and accessories, partially offset by higher material costs.
Net income increased 136% in the quarter to $5.7 million from $2.4 million last year.
