Gross Margin Improvement
Escalade expanded its gross margin by nearly 60 basis points due to lower manufacturing and logistics costs, despite a $1.6 million tariff-related headwind.
Inventory Optimization
The company reduced inventory by approximately $14 million compared to the prior year quarter, enhancing flexibility and driving working capital efficiencies.
Market Share Maintenance
Despite a decline in overall sales, Escalade maintained or gained market share in key categories such as basketball, safety, archery, and recreational games.
Successful Product Launches
The company launched innovative products like the ONIX Hype and Hype Pro pickleball paddles and the flagship STIGA Paragon table tennis table.
Debt and Cash Management
Escalade repaid approximately $2 million in debt, reduced net leverage to 0.5x trailing 12 months EBITDA, and increased its cash position.