Gross Margin Expansion
Escalade expanded its gross margin by nearly 60 basis points, driven by 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, enhancing flexibility and driving working capital efficiencies.
Debt Reduction and Share Repurchase
Escalade repaid approximately $2 million in debt, reducing net leverage to 0.5x trailing 12 months EBITDA, and repurchased nearly $800,000 of shares.
Product Innovation and Launches
Successful launches of ONIX Hype and Hype Pro pickleball paddles and the STIGA Paragon table tennis table. The company is also celebrating the 50th anniversary of Woodplay playsets.
Market Share Maintenance
Despite overall sales decline, Escalade maintained or gained market share in key categories like basketball, safety, archery, and recreational games.
Strong Free Cash Flow
The company delivered strong free cash flow, underpinned by a continued focus on working capital efficiency, totaling $13.3 million.