Thu, Jul 25, 8:52 PM (44 days ago)
Escalade, Inc. reported a 7.7% decline in net sales for Q2 2024 compared to Q2 2023, primarily due to softening consumer demand and channel inventory destocking. Gross margin slightly decreased to 24.2% from 24.6% due to lower fixed cost absorption and increased customer program spending. SG&A expenses increased by 3.0% to $10.1 million, and as a percentage of sales, rose to 16.1% from 14.5%. The effective tax rate increased to 23.8% for the first six months of 2024 from 22.6% in the same period last year. Total debt decreased by $7.7 million from December 31, 2023, to $43.2 million. The company remains compliant with its debt covenants and anticipates sufficient cash flow from operations to meet its financial obligations.