Escalade Inc. said sporting goods revenues in Q4 and fiscal 2007 were down 12% and 5%, respectively, due to lower sales to mass market retail customers. The company said industry-wide erosion in consumer demand for soccer and hockey game tables was the primary reason for the decline and that this trend was expected to continue into next year.
Partially offsetting this decline was an increase in sales to sporting goods specialty retailers and dealers. Sales to these channels increased 14% during fiscal 2007 and represent the core of the company's strategy to diversify both product offerings and distribution channels.
Sales to the specialty/dealer channel now make up 38% of total sporting goods sales compared to 31% last year. ESCA anticipates this trend to continue with growth from the specialty/dealer channel offsetting the decline expected in the mass market retail channel.
Escalade Sports also said it will cease manufacturing archery equipment for children, resulting in approximately 25 employees losing their jobs at the companys factory in Evansville, IL.
In a press release, Escalade Sports said it will cease making archery and playground equipment at that building, which is also its headquarters and chief warehouse. Escalade's factory in Gainesville, FL, will continue to make archery equipment for adults.
