Easton-Bell Sports, Inc. reported a 57.1% increase in net sales for the first quarter to $174.6 million from $111.2 million for the year-ago quarter. During the quarter, $55.7 million in net sales was attributable to the Easton acquisition with $49.2 million in Team Sports and $6.5 million in Action Sports. On an organic basis, net sales grew 7.0%.
Team Sports net sales increased $52.0 million, or 113.9% as compared to the prior year. In addition to the acquisition of Easton, other factors contributing to the increase in Team Sports net sales included increased football helmet and reconditioning sales. Action Sports net sales increased $11.4 million, or 17.4% when compared to the prior year. Action Sports sales increased primarily due to the inclusion of a full quarter of Eastons cycling business and increased sales of helmets and accessories.
For the first fiscal quarter of 2007, gross profit was $58.5 million, or 33.5% of net sales as compared to $36.9 million, or 33.2% of net sales for the first fiscal quarter of 2006. Team Sports gross profit of 36.9% of net sales decreased 2.5 percentage points compared to the first fiscal quarter of 2006. The decrease is primarily due to the inclusion of a full quarter of Eastons Team Sports business, which sells products primarily through retail channels, whereas the balance of the Team Sports products are primarily sold directly to institutions. Action Sports gross profit of 29.2% of net sales decreased 1.7 percentage points compared to the first fiscal quarter of 2006, primarily due to the inclusion of a full quarter of the Easton cycling business and increases in inventory reserves.
Net income for the quarter totaled $13.1 million, switching from a loss of $1.2 million last year. On an organic basis, net income increased to $4.5 million from last year's loss.
