Easton Bell Sports saw relatively flat sales for the 
third fiscal quarter with just over 1% growth. Increases in Eastons Action Sports segment were partially offset by a slight decline in team sports sales. However, this slow growth did not impact the bottom line, which saw triple digit increases thanks to drastically reduced SG&A expenses and a large currency exchange rate benefit.
Gross margins decreased because of sales mix changes and increased distribution costs and freight costs, partially offset by the cost savings realized from moving Eastons manufacturing of aluminum products to Asia. SG&A expenses decreased considerably due to lower compensation and marketing expenses offset partially by investments in R&D and Sarbanes-Oxley compliance.
Looking at the individual divisions, the decrease in the Team Sports divisions net sales was primarily due to slow baseball and softball sales, which was partially offset by increased sales of ice hockey products and reconditioning services. Sales of football products were said to be “relatively flat” during the quarter. Team Sports gross margin was 38.3% of net sales, an increase of 140 basis points, primarily from the new factory in Asia.
Team Sports operating income increased 23.6% to $19.5 million compared to $15.7 million last year.
Action Sports net sales increased due to increased sales of cycling helmet and specialty channel accessories, partially offset by a decrease in sales of snow helmets. Gross margin in the segment was 29.9% of net sales, a decrease of 340 basis points due to a change in sales mix and increased distribution costs, freight costs and inventory write-offs. Operating income declined 13.1% to $10.4 million compared to $12.0 million last year.
Company-wide restructuring expenses increased by $400,000 for the third quarter due to additional closure costs in relation to the Van Nuys, California facility, which has been sold. The stronger results in team sports, coupled with lower SG&A expenses helped boost Easton Bell Sports bottom line over 150%.
