Escalade Sports saw second quarter sales increase 2.8% to $34.1 million from $33.2 million last year due to increased sales to the specialty market, which includes dealers and specialty sports retailers. For the quarter, sales to the specialty market increased 7.7% over the year-ago period. Roughly half of the growth in the specialty market came from products acquired by the company in the second half of last year and during the first quarter of the current year. Nearly all of the growth is associated with archery products where the company now has significant intellectual property rights. Sales to mass market retailers declined 1.6% for the quarter. The company expects continued sales declines to these customers as a result of a general decline in demand for game tables. Management anticipates that growth in the specialty market will continue to compensate for declines in the mass market resulting in Sporting Goods sales for 2007 that are relatively unchanged from 2006.

Operating income for Escalade Sports jumped 45.3% to $3.5 million, while net income more than doubled in the quarter, up 132% to $1.7 million.