Evansville-based sports and outdoor recreational equipment maker Escalade Inc. (Nasdaq: ESCA) is reporting fourth quarter net income of $4.9 million, down from $5.1 million during the same period in 2020. Chief Executive Officer Walter Glazer says the company’s sales decline stems from supply chain challenges and is not a reflection of demand for its brands.
“Demand was particularly strong in archery and pickleball driven by category growth and market share gains,” said Glazer. “Indoor game sales were hampered by a shortage of timely supply. Once again, higher supply chain, raw material, and inventory carrying costs squeezed gross margins. While net income declined 4.2%, EPS was flat due to a lower share base.”
Escalade is also reporting full-year net income of $24.4 million in 2021, compared to $25.9 million the previous year.
Glazer says despite the supply chain challenges, inflation, and labor shortages, the company continued to deliver products to its retail partners and consumers. For the full year, Escalade is reporting sales increased 14.6% compared to 2020.
“While we expect continued cost pressures and challenging supply chain conditions in the foreseeable future, we continue to invest and innovate for the long term,” said Glazer.
Earlier this year, Escalade acquired Brunswick Billiards in Wisconsin.
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