Escalade, Inc. reported improved earnings climbed 44.4 percent with a boost from improved gross margins. Sales were down 3.2 percent, although the company achieved growth in archery, outdoor games, darting, and safety categories.

 First Quarter Results

  • Total net sales decreased 3.2 percent on a year-over-year basis in the first quarter, primarily due to softer demand for basketball and table tennis products, partially offset by increased demand for archery and safety products.
  • Escalade reported a first-quarter gross margin of 26.7 percent, an increase of 161 basis points versus the prior-year period, primarily driven by lower fixed costs and decreased inventory storage and handling costs.
  • Net income for the first quarter of 2025 was $2.6 million, or $0.19 diluted earnings per share, compared to net income of $1.8 million, or $0.13 diluted earnings per share, for the same quarter in 2024.
  • Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased $0.5 million to $4.9 million in the first quarter 2025 versus $4.4 million in the prior-year period.
  • During the first quarter of 2025, the company generated $3.8 million in cash flow from operations, an increase of $3.8 million relative to the first quarter of last year. The improvement in cash flow from operations was primarily attributable to an increase in profitability and a reduction in cash flow used for working capital purposes.
  • Total debt at the end of the quarter was $23.8 million, down from $53.5 million at the end of the first quarter last year and $25.6 million at the end of 2024.
  • As of March 31, 2025, the company had total cash and equivalents of $2.2 million with $55.0 million of availability on its senior secured revolving credit facility maturing in 2027. At the end of the first quarter 2025 net debt (total debt less cash) was 0.8x trailing twelve-month EBITDA.
  • Escalade announced a quarterly dividend of $0.15 per share to be paid to all shareholders of record on July 7, 2025 and payable on July 14, 2025.

Management Commentary
“Our first quarter results underscore the effectiveness of our operational discipline initiatives, culminating in gross margins of 26.7 percent and improved profitability—even amid softening consumer demand,” said Walt Glazer, chairman of Escalade’s Board of Directors. “This 161-basis-point year-over-year increase in margin reflects an improvement in our cost structure.”

“Our performance continues to reflect our team’s dedication to executing against the priorities we’ve communicated—namely, operational excellence and disciplined execution,” continued Glazer. “Although consumer demand remained challenged due to heightened macroeconomic uncertainty, we achieved sales growth in our archery, outdoor games, darting, and safety categories.”

“During the quarter, we also maintained our disciplined approach to capital allocation, supported by $3.8 million in operating cash flow,” said Glazer. “We utilized this cash flow to repay $1.8 million in debt and return capital to shareholders through $2.1 million in dividends paid and $1.4 million in share repurchases.”

“Our strategic focus remains centered on operational excellence, prudent capital deployment, and product innovation,” said Escalade’s Chief Executive Officer and President Armin Boehm. “We are especially focused on advancing product development across our categories. Through brand building, consumer connections, and innovation, we aim to grow our market share and position the company for above-market performance as consumer demand normalizes through the cycle.”

“Operationally, we are actively managing the evolving global trade environment,” Boehm added. “We began to see the early effects of new tariffs on shipments of imported goods late in the first quarter and are evaluating all available options to mitigate the effect of these additional tariffs and potential supply chain disruptions. We are committed to maintaining a lean cost structure while meeting customer needs.”

“We will continue to pursue a disciplined approach to capital allocation,” concluded Boehm. “Our focus remains on positioning the business for long-term shareholder value creation.”

Escalade’s brands include Brunswick Billiards, Stiga table tennis, Accudart, Rave Sports water recreation, Victory Tailgate custom games, Onix pickleball, Goalrilla basketball, Lifeline fitness, Woodplay playsets, and Bear Archery.

Image courtesy Escalade/Onix