Easton-Bell Sports, Inc. reported net sales for the third quarter grew 1.1% to $188.6 million from $186.5 million last year. Team Sports net sales decreased 0.9% to $105.9 million with the company saying factors contributing to the decrease in Team Sports net sales included decreased sales of baseball and softball products, which was partially offset by increased sales of ice hockey products and reconditioning services. Sales of football products was relatively flat during the quarter, as compared to the prior year. Action Sports net sales increased 3.8% to $82.7 million in the third fiscal quarter of 2007 due to increased sales of cycling helmet and specialty channel accessories, partially offset by a decrease in sales of snow helmets.

During the first three fiscal quarters of 2007, net sales increased $73.6 million, or 14.8%, as compared to the first three fiscal quarters of 2006. This increase is primarily attributable to the inclusion of a full first fiscal quarter of Easton’s business during 2007 as compared to 2006, which only included such business for the last 15 days of the first fiscal quarter of 2006. During the first three fiscal quarters of 2007, an additional $48.5 million and $0.4 million in net sales were attributable to the Easton and Cyclo/Shanghai Cyclo acquisitions, respectively, with $45.4 million attributable to Team Sports and $3.5 million attributable to Action Sports. Team Sports net sales increased $57.9 million, or 21.0%, 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, shoulder pad, and apparel sales and reconditioning services. Action Sports net sales increased $15.7 million, or 7.1%, when compared to the prior year. In addition to the inclusion of a full first fiscal quarter of Easton’s cycling business and acquisition of Cyclo/Shanghai Cyclo, sales of cycling helmets, eyewear, juvenile licensed products and specialty channel accessories increased, partially offset by a decrease in sales of snow helmets.

Gross margin for the company was 34.7% for the quarter, down 70 basis points from 35.4% for last year's Q3. SG&A expenses, however, decreased 210 basis points to 20.9% of net sales from 23.0% last year, which helped to fuel the 151% jump in net income to $9.4 million. The bottom line was also boosted by a $2.6 million benefit due to a foreign currency translation adjustment.