Full-year profit drops for Evansville sporting goods company
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Evansville-based Escalade Inc. is reporting full-year net income of $9.8 million in 2023, down from $18 million the previous year. The sporting goods and recreation equipment manufacturer said Friday it ended the year with a 9.2% drop in quarterly net sales, driven largely by softer consumer demand across the majority of its product categories.
However, the company said the drop in sales was partially offset by improved demand in its basketball and indoor games products categories. CEO Walter Glazer said the company delivered a strong finish to the year, despite the drop in profit.
“During a period of softer consumer demand driven by changes in discretionary spending, we successfully maintained our price discipline on in-line product while clearing excess inventory acquired during the Covid-era supply chain disruptions, reduced both fixed and variable costs, and continued to drive a more favorable sales mix, culminating in fourth quarter growth in earnings per share and cash flow despite lower sales,” Glazer said in a news release.
Glazer said the company continues to prioritize a reduction in its inventories, noting that total inventories in the fourth quarter were reduced by nearly $13 million.
He added that Escalade continues to reduce its debt and strengthen its balance sheet.
“We generated more than $20 million of operating cash flow in the fourth quarter, an increase of 43.9% versus the prior-year period. In 2023, we reduced our outstanding indebtedness by $44 million, including $20 million in the fourth quarter alone. Looking ahead to 2024, we will continue to prioritize further debt reduction, while continuing to invest in our industry-leading brands and product portfolio.”
Glazer said while consumer demand remains relatively soft across most of its product categories, the company is seeing “encouraging signs of growth” in its direct-to-consumer channel.
Stock markets were closed Friday, but Escalade’s stock finished Thursday $13.75 per share, a 4.25% increase.
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