Easton-Bell Sports reported in a filing with the SEC that net sales for 2006 increased 68.2% to $639.0 million compared to $379.9 million in 2005. The increase was primarily attributable to the inclusion of Easton from the date of acquisition on March 16, 2006. Net sales in the Team Sports segment for 2006 grew $215.0 million or 161.9% over 2005, with $198.5 million of the growth attributable to the Easton acquisition. Growth related to football helmets, shoulder pads, apparel, reconditioning services and collectible products was $16.5 million. Net sales of the Action Sports segment grew $44.1 million or 17.8% in 2006 versus 2005, with $22.0 million of the growth attributable to the Easton acquisition. Growth related to cycling helmets and accessories and snow helmets was $22.1 million.
For 2006, gross profit was $212.9 million, or 33.3% of net sales, compared to $134.9 million or 35.5% of net sales for 2005. The lower gross margin was primarily attributable to the acquisition of Easton and the resulting $19.0 million purchase accounting write-up of inventory to fair market value. In addition, the benefit of new product introductions, sales growth in products with higher gross margins and cost reduction efforts more than offset commodity cost increases.
The company posted a net loss for the year of $6.0 million compared to net income of $3.2 million last year as a result of increased income expense.