Escalade sees profit growth in Q3
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Evansville-based Escalade Inc. is reporting third quarter net income of $4.3 million, up from $3 million during the same period last year. The sporting goods and recreation equipment manufacturer said Thursday that net sales dropped 2.1% primarily due to softer consumer demand across most of its product categories.
Third quarter net sales totaled $73 million, but the slight drop was partially offset by improved demand for the company’s basketball and pickleball products.
CEO Walter Glazer said consumer demand for many of the company’s product categories has remained resilient despite periods of high interest rates and persistent inflationary headwinds.
“These economic headwinds will likely continue for some time and may further erode consumer confidence and have a greater impact on discretionary spending in our categories,” Glazer said. “We also believe our retail partners will continue to closely manage their inventory levels and be more promotional in this uncertain economic environment.”
Glazer credits the increased demand for basketball and pickleball products to the company’s continued investment in its direct-to-consumer platform, which has grown by 50% year-to-date.
Looking ahead, Glazer said debt reduction remains Escalade’s top capital allocation priority.
“Strong free cash generation in the third quarter supported approximately $12 million in debt reduction,” he said. “Looking ahead, we remain focused on closely managing our capital expenditures as well as further reducing outstanding borrowings and reinvesting in our market-leading portfolio of high-quality brands.”
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