Escalade Sees First Quarter Profit
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Evansville-based Escalade Inc. (Nasdaq: ESCA), a sporting goods and recreation equipment provider, is reporting first quarter net income of $6.7 million, up from $5.4 million during the same period last year. The company says the results are attributed to strong organic sales growth across the basketball, archery, pickleball, and indoor game categories.
Additionally, Escalade completed its acquisition of Brunswick Billiards in January, which is the largest provider of billiards tables, game tables, and game room furniture in the U.S.
“Nearly all categories performed very well which validates the strength of our brand portfolio and consumer acceptance of our range of products,” said Walter Glazer, chief executive officer of Escalade. “Our product teams continue to innovate and bring compelling sporting goods, games, and related items to market while our sourcing and logistics professionals navigate the challenging global supply chain. We continue to ‘onshore’ items we can produce in our domestic manufacturing facilities and remain focused on the integration of the Brunswick acquisition, which we expect will be accretive to earnings beginning in the second half of 2022.”
The company says challenges remain with the global supply chain, raw materials cost inflation and labor constraints. Glazer says the company also saw a slowdown in demand for fitness products following unsustainable growth over the past two years.
“In the near term, we anticipate continued supply chain pressures, including delays and excess logistics costs,” said Glazer. “We are also carefully monitoring point of sale data along with consumer behavior and sentiment, given rising interest rates, inflation, and geopolitical uncertainty. Longer term, we believe consumers will continue to value the positive experiences and memories created with the fun, healthy activities they can enjoy with the Escalade lifestyle.”
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