Escalade, Incorporated reported a decline in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company recorded net sales of $54.3 million, a decrease of 13.1% from $62.5 million in the same period of 2024. For the six months ending June 30, 2025, net sales totaled $109.8 million, down 8.4% from $119.8 million year-over-year. The company's net income for the second quarter was $1.8 million, compared to $2.8 million in the prior year, while net income for the first half of 2025 was $4.4 million, slightly lower than $4.6 million in 2024.
The decline in sales was attributed to softer market demand across most categories and delays in customer shipments due to tariff volatility. However, the company noted market share gains within the safety category, which partially offset the overall decline. Gross margin improved to 24.7% for the second quarter of 2025, up from 24.2% in the same quarter of 2024, primarily due to lower fixed costs and reduced inventory storage and handling expenses. Selling, general, and administrative expenses (SG&A) increased slightly to $10.2 million, representing 18.9% of sales, compared to 16.1% in the prior year.
In terms of operational developments, Escalade's total assets as of June 30, 2025, were $218.3 million, a decrease from $243.1 million a year earlier. The company reported a total debt of $22.0 million, down from $25.6 million at the end of 2024. The company has maintained a stable employee headcount, with 13,803,745 shares of common stock outstanding as of July 30, 2025. Escalade continues to focus on expanding its customer base and enhancing its product offerings, particularly in the sporting goods sector, which includes basketball goals, archery, and fitness products.
Looking ahead, Escalade's management expressed cautious optimism regarding future performance, emphasizing the importance of strategic acquisitions and new product development to drive growth. The company is actively working to mitigate the impacts of tariffs and inflationary pressures while navigating a challenging market environment. The outlook remains uncertain, as management noted that the results for the first half of 2025 may not be indicative of the full year, given ongoing economic conditions and potential changes in consumer demand.
About ESCALADE INC
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