Companies

Escalade Restores Sales Growth After a Stagnant First Quarter

The Tip Desk · July 30, 2026 · 3 min read

Second-quarter net sales reached $57.7 million, up 6.2% from a year earlier, after a 0.6% rise in the first quarter.

Escalade, Inc. (ESCA), a manufacturer and distributor of sporting goods and indoor/outdoor recreational equipment, posted net sales of $57.7 million in the three months ended June 30, 2026, a 6.2% increase from a year earlier. That pace accelerated from a 0.6% year-over-year rise to $55.8 million in the first quarter.

The company said the sales increase was driven primarily by archery categories, including the incremental contribution from its September 2025 acquisition of Gold Tip, and by higher demand in safety, table tennis and basketball. Those gains were partially offset by lower sales in outdoor games.

Gross margin was 26.2%, up 146 basis points from the year-ago second quarter. The year-over-year expansion narrowed from 408 basis points in the first quarter, when the margin was 30.7%. Escalade attributed the second-quarter improvement primarily to better absorption, operating leverage and a favorable sales mix. President and Chief Executive Officer Patrick J. Griffin said the margin gain reflected lower fixed costs and a favorable sales mix.

Reported operating income was $11.9 million, compared with $2.6 million a year earlier. Pre-tax income included a $10.2 million tariff recovery. The income statement recorded a $9.9 million tariff-recovery credit. Excluding the recovery, second-quarter net income was $2.6 million, or $0.19 a share.

Net income was $9.4 million, or $0.68 a share, versus $1.8 million, or $0.13 a share, a year earlier. EBITDA was $13.2 million, compared with $3.9 million in the year-ago second quarter. Excluding the tariff recovery, EBITDA was $4.7 million, an increase of $0.8 million from the prior-year period.

Cash provided by operations was $8.7 million, down $4.6 million from the second quarter of last year. The company said the decline was primarily attributable to an increase in cash used for working capital.

Total debt ended the quarter at $14.9 million, down from $22.0 million a year earlier and from $18.5 million at year-end 2025. Cash and equivalents were $16.4 million as of June 30, 2026. Availability on the senior secured revolving credit facility maturing in 2027 was $56.7 million. Griffin said the company ended the period in a net cash position.

Escalade declared a quarterly dividend of $0.1525 a share, payable October 13, 2026, to shareholders of record on October 6, 2026.

Griffin said the company expects to use some of the tariff refunds to help offset higher costs from increased freight rates, commodity inflation and additional new tariffs. The company also plans to invest in trade and consumer promotions, accelerate product innovation and make facility improvements. Looking to the second half of the year, he said the company remains confident in its ability to drive continued top-line growth, while noting that elevated energy costs and broader inflationary pressures will continue to weigh on consumer spending.

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