Easton-Bell Sports is developing specific programs to address larger retailers’ concerns about inventory, according to comments by new president and CEO Paul Harrington.  His comments came during his first earnings conference call with analysts since joining the company in April. Harrington described the order book at EBS as “strong.”  He said initial sell-in was coming in “pretty strong” in Europe.  Business was weaker in the United States.


“Inventory within the independent or specialty channel we have a pretty good read and feel comfortable,” he said. “Clearly on some of the larger sporting good accounts, they are looking at their inventory levels.  We are working with them.  We have come up with specific programs, but we don't see it as a huge problem.”


Harrington also disclosed that the company promoted Dan Arment to the new position of president for Riddell football from his position as EVP in charge of the company’s action sports business.


Harrington added that he eliminated the position of president of team sports last week to flatten the organization and improve speed to market.  The company disclosed last week that Daniel Jelinek would resign from the position effective June 1.


Harrington said he will travel to Asia in the first week of June to talk with suppliers about how they can partner to counter rising commodity prices.  Those talks will focus on how they can “realize volume against growth opportunities and product line rationalization.”


“One thing we need to take a look at is our overall product line profitability and make sure that all the different categories and products that were in are profitable,” he said.


In reporting its first-quarter earnings last week, Easton-Bell said that rising commodity prices cut into margins at its action sports business in the first quarter. On Monday, CFO Mark Tripp said product sold through the mass channel was hit hardest, but that savings of about $1.5 million from outsourcing aluminum bat production to Asia offset those higher costs.


>>> First and foremost, Harrington is an operations guy well versed in inventory control and sourcing…