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Escalade Reports Second Quarter 2024 and Year to Date 2024 Results
ESCAEscalade(ESCA) Prnewswire·2024-07-25 10:00

Core Insights - Escalade, Inc. reported a decline in net sales of 7.7% year-over-year for Q2 2024, totaling 62.5million,attributedtosofteningconsumerdemandandinventorydestocking[2][19]−Thecompanyexperiencedadecreaseinoperatingincometo62.5 million, attributed to softening consumer demand and inventory destocking [2][19] - The company experienced a decrease in operating income to 4.5 million from 6.3millioninthesamequarterof2023,andnetincomefellto6.3 million in the same quarter of 2023, and net income fell to 2.8 million, or 0.20perdilutedshare,comparedto0.20 per diluted share, compared to 3.6 million, or 0.26perdilutedshare,inQ22023[2][36]−GrossmarginforQ22024wasreportedat24.20.26 per diluted share, in Q2 2023 [2][36] - Gross margin for Q2 2024 was reported at 24.2%, a decline of 40 basis points from the previous year, primarily due to lower fixed cost absorption and increased customer program spending [3] Financial Performance - For the first half of 2024, net income was 4.6 million, or 0.33perdilutedshare,comparedto0.33 per diluted share, compared to 2.7 million, or 0.20perdilutedshare,forthesameperiodin2023[19][36]−Totalnetsalesforthefirsthalfof2024decreasedby3.90.20 per diluted share, for the same period in 2023 [19][36] - Total net sales for the first half of 2024 decreased by 3.9% year-over-year, again due to softening consumer demand and channel destocking [19] - Cash flow from operations increased nearly 60% year-over-year to 13.3 million in Q2 2024, supporting a reduction in outstanding debt [6][20] Debt and Dividends - Total debt at the end of Q2 2024 was 43.2million,significantlyreducedfrom43.2 million, significantly reduced from 84.0 million at the end of Q2 2023 [4] - The company declared a quarterly dividend of $0.15 per share, payable on October 14, 2024 [5] Market Position and Strategy - Escalade's brands, including Stiga table tennis, Bear Archery, and Brunswick Billiards, showed solid demand, although overall retail sales were soft due to cautious inventory management by retail partners [7] - International sales grew by 15%, and owned e-commerce sales increased by 28%, indicating a shift in consumer purchasing behavior [7] - The company is focusing on operating discipline and balance sheet optimization to maximize shareholder value amid a cautious consumer spending outlook [6][24]