CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and can afford the risks. Trading CFDs is high risk and is not suitable for everyone. Refer to our PDS and Target Market Determination. AFSL 513393
Open platformOpen platform

Sporting goods maker Escalade's Q3 sales fall 3.2%, net income rises

By Reuters News


Overview

  • US sporting goods maker's Q3 sales fell 3.2% yr/yr on lower basketball and indoor games demand

  • Net income and EPS rose yr/yr, helped by tariff recoveries and improved gross margin

  • Company generated strong operating cash flow and reduced total debt from prior year


Outlook

  • Company expects inflation and higher interest rates to weigh on consumer spending for discretionary goods

  • Escalade sees new product launches and acquisitions supporting sales growth in 2027 despite consumer headwinds

  • Company says improved gross margin structure is sustainable through the cycle


Result Drivers

  • CATEGORY PERFORMANCE - Lower sales in basketball, indoor games and table tennis categories weighed on revenue, partly offset by growth in archery, safety and outdoor games

  • GROSS MARGIN IMPROVEMENT - Gross margin rose due to better absorption and a favorable customer and sales mix

  • TARIFF RECOVERIES - Pre-tax income benefited from $1.7 mln in tariff recoveries related to prior periods


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Miss

$65.61 mln

$68.48 mln (2 Analysts)

Q3 EPS

$0.48

Q3 Net Income

Beat

$6.73 mln

$4.67 mln (2 Analysts)


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the recreational products peer group is "buy"

  • Wall Street's median 12-month price target for Escalade Inc is $24.00, about 29.4% above its October 28 closing price of $18.54


Reuters Recommended Reads

  • Oct 27 - Rocky Brands Q3 sales rise on strong demand, tariff refund helps margins

  • Oct 28 - VF Corp Q2 revenue beats estimates on brand performance

  • Oct 28 - O'Reilly Q3 sales beat analyst estimates on professional business growth, tariff refunds


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.