Escalade Q2 Sales Rise 6.2%, Net Income Surges on $10.2M Tariff Recovery
ESCA sits 72% above its 52-week low of $11.41.
Summary
Escalade reported Q2 2026 net sales of $57.7M (+6.2% YoY) and net income of $9.4M ($0.68 EPS), including a $10.2M one-time tariff recovery. Excluding that, net income was $2.6M ($0.19 EPS). The company also declared a $0.1525 quarterly dividend and ended the quarter with a net cash position.
Key Events · Earnings and Guidance · ESCA
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Q2 Sales Up 6.2%
Net sales reached $57.7 million, driven by archery, safety, table tennis, and basketball categories, including the Gold Tip acquisition.
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Tariff Recovery Boosts Net Income
A one-time $10.2 million pre-tax tariff recovery inflated reported net income to $9.4 million ($0.68 EPS). Excluding this, net income was $2.6 million ($0.19 EPS), still above Q2 2025's $1.8 million.
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Gross Margin Expands 146 bps
Gross margin improved to 26.2% from 24.7% a year ago, reflecting better absorption, operating leverage, and favorable sales mix.
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Balance Sheet Strengthens
Total debt reduced to $14.9 million from $22.0 million a year ago. Cash and equivalents rose to $16.4 million, resulting in a net cash position.
Analysis · ESCA · Manufacturing
A strong second quarter saw Escalade's net sales climb 6.2% year-over-year to $57.7 million, while gross margin expanded 146 basis points to 26.2%. Reported net income of $9.4 million, or $0.68 per diluted share, was boosted by a one-time $10.2 million pre-tax tariff recovery. Excluding that recovery, net income was $2.6 million, or $0.19 per share, still ahead of the prior-year quarter's $1.8 million. The balance sheet continued to strengthen, with total debt falling to $14.9 million and cash rising to $16.4 million, putting the company in a net cash position. Management also declared a quarterly dividend of $0.1525 per share, up slightly from $0.15 a year ago. The results show solid operational momentum, though the headline earnings number is inflated by the non-recurring tariff refund.
At the time of this filing, ESCA was trading at $19.64 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $271.1M. The 52-week trading range was $11.41 to $21.32. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.