Sporting goods maker Escalade's Q3 sales fall 3.2%, net income rises
ESCA•Escalade's third-quarter sales fell 3.2% year over year to $65.61 million, while net income rose to $6.73 million and EPS was $0.48. The company cited lower demand in basketball and indoor games, improved gross margin and $1.7 million in tariff recoveries.
1. Quarterly results
Escalade reported third-quarter sales of $65.61 million, down 3.2% year over year and below the $68.48 million consensus estimate. Net income was $6.73 million, compared with the $4.67 million estimate, and EPS was $0.48; both net income and EPS rose year over year.
2. Sales and margin drivers
Lower sales in basketball, indoor games and table tennis weighed on revenue, partly offset by growth in archery, safety and outdoor games. Gross margin increased with better absorption and a favorable customer and sales mix. Pre-tax income benefited from $1.7 million in tariff recoveries related to prior periods.
3. Outlook and cash
The company expects inflation and higher interest rates to weigh on consumer spending for discretionary goods. It sees new product launches and acquisitions supporting sales growth in 2027, and said its improved gross margin structure is sustainable through the cycle. Escalade generated strong operating cash flow and reduced total debt from the prior year.
