Escalade Reports Q1 2025 Financial Results with $55.5M in Net Sales

Escalade, Incorporated reported its financial results for the first quarter of 2025, revealing a net sales figure of $55.5 million, a decrease of 3.2% from $57.3 million in the same period of 2024. The decline in sales was primarily attributed to reduced demand for basketball and table tennis products, although this was somewhat offset by increased interest in archery and safety products. The company's operating income rose to $3.7 million, up from $3.1 million year-over-year, while net income increased to $2.6 million, compared to $1.8 million in the prior year. Basic and diluted earnings per share both improved to $0.19, up from $0.13 in the first quarter of 2024.

In terms of operational efficiency, Escalade achieved a gross margin of 26.7%, an increase from 25.0% in the previous year, driven by lower fixed costs and reduced inventory storage and handling expenses. Selling, general, and administrative expenses (SG&A) were slightly lower at $10.6 million, down from $10.7 million, representing 19.1% of sales compared to 18.7% in the prior year. The effective tax rate remained stable at 23.8% for both periods.

The company’s total debt decreased to $23.8 million as of March 31, 2025, down from $25.6 million at the end of 2024. This reduction in debt reflects a strategic focus on improving financial health, with total debt as a percentage of stockholders' equity dropping to 14.1% from 15.1% at the end of the previous year. Escalade remains compliant with its debt covenants and has access to a revolving credit facility, which it expects will support its operational and growth needs.

Escalade continues to pursue growth through strategic acquisitions and product innovation within its sporting goods segment, which includes basketball goals, archery, and fitness products. The company is focused on expanding its customer base and enhancing its market presence through established relationships with major retailers. Looking ahead, management acknowledges potential challenges, including economic conditions and trade uncertainties, which may impact future performance. However, they remain optimistic about the company's ability to adapt and grow in the evolving market landscape.