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1. Company Snapshot

1.a. Company Description

Escalade, Incorporated, together with its subsidiaries, manufactures, distributes, imports, and sells sporting goods in North America, Europe, and internationally.The company provides various sporting goods brands in basketball goals, archery, indoor and outdoor game recreation, and fitness products.It offers archery products under the Bear Archery, Trophy Ridge, Whisker Biscuit, Cajun Bowfishing, Karnage, Fletcher, SIK, BearX, and Rocket brand names; table tennis products under the STIGA and Ping-Pong brands; basketball goals under the Goalrilla, Goaliath, Silverback, Hoopstar, and Goalsetter brand names; and pickleball under the Onix, DURA, and Pickleball Now brands.


The company also provides play systems under the Woodplay, Jack & June, and Childlife brands; fitness products under the STEP, Lifeline, Kettleworx, Natural Fitness, and PER4M brand names; safety products under the USWeight brand; hockey and soccer game tables under the Triumph Sports, Atomic, American Legend, Air Hockey, and HJ Scott brands; and billiard tables and accessories under the American Heritage Billiards, Brunswick Billiards, Gold Crown, Centennial, Cue&Case, Lucasi, Mizerak, PureX, Rage, Players, Minnesota Fats, and Mosconi brand names.In addition, it offers darting products under the Unicorn, Winmau, Arachnid, Accudart, and Nodor brands; water sports products under the RAVE Sports brand; and outdoor game products under the Victory Tailgate, Triumph Sports, Zume Games, and Viva Sol brand names.The company provides its products through sporting goods retailers, specialty dealers, online retailers, traditional department stores, and mass merchants.


Escalade, Incorporated was founded in 1922 and is headquartered in Evansville, Indiana.

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1.b. Last Insights on ESCA

Escalade, Incorporated's recent performance was negatively impacted by a decline in Q4 2024 revenue, primarily due to a 12% decrease in net sales in its core sporting goods segment. The company cited soft demand and reduced consumer spending as reasons for the decline. Additionally, the appointment of a new CEO and President, Armin Boehm, may have caused some market uncertainty, potentially contributing to the negative sentiment. The company's efforts to drive growth through strategic initiatives and investments will be closely watched in the coming quarters.

1.c. Company Highlights

2. Escalade's Q3 Earnings: A Strong Performance Amidst Uncertainty

Escalade Inc. reported a net sales figure of $67.8 million for the third quarter of 2025, accompanied by a significant improvement in gross margins, which expanded by 344 basis points to 28.1%. The company's net income reached $5.6 million, translating to $0.40 per diluted share, surpassing analyst estimates of $0.31. The earnings per share (EPS) outperformance was a notable highlight, indicating the company's operational efficiency and cost discipline. The current P/E Ratio of 14.35 suggests that the stock is fairly valued relative to its earnings.

Publication Date: Nov -24

📋 Highlights
  • Leadership Transition:: Patrick Griffin, Interim CEO, confirmed stable strategic direction following Armin Boehm's departure.
  • Financial Performance:: Q3 net sales reached $67.8M; gross margin rose 344 bps to 28.1% due to cost discipline and tariff mitigation.
  • Market Positioning:: Gained market share in archery, safety, and games; maintained lead in pickleball despite consumer uncertainty.
  • Profitability:: Reported net income of $5.6M ($0.40 per diluted share) for Q3.
  • Capital Strategy:: Prioritizing debt reduction, potential cash build-up, and evaluating buybacks/acquisitions post-debt paydown.

Operational Efficiency and Cost Management

The improvement in gross margins was attributed to lower operational costs, benefits from footprint rationalization, and tariff mitigation initiatives. As Patrick Griffin, Interim President and CEO, noted, the company's focus on cost discipline and operational efficiency drove the improved results. This operational efficiency is expected to continue, with the company proactively managing its supply chain and inventory levels in preparation for the holiday season.

Market Position and Product Innovation

Despite heightened consumer uncertainty and ongoing tariff-related costs, Escalade maintained a strong market position, driven by investments in innovative products. The company gained market share in categories such as archery, safety, and games, and maintained its market share in the growing pickleball category. This focus on product innovation and brand development is a key aspect of the company's long-term strategy to strengthen its market leadership.

Outlook and Valuation

Looking ahead to the fourth quarter, Escalade anticipates softer holiday sales compared to recent years, but is well-prepared with managed supply chain and inventory levels. The company's valuation metrics, including a P/S Ratio of 0.76 and an EV/EBITDA of 8.49, indicate a relatively reasonable valuation. With analysts estimating revenue growth of 3.0% for the next year, the stock's current valuation appears to be fairly priced, with a Dividend Yield of 4.54% providing a stable return for investors.

Management Transition and Capital Allocation

The company's leadership transition, with Armin Boehm's departure, is not expected to disrupt its strategic direction. The Board is expected to appoint a permanent CEO with a growth mindset and focus on the business. Escalade continues to prioritize debt paydown, and may consider building a cash position, acquisitions, share buybacks, and dividend payments, providing a clear direction for capital allocation.

3. NewsRoom

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Comparing Lazydays (NASDAQ:GORV) & Escalade (NASDAQ:ESCA)

Dec -02

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Escalade, Incorporated (ESCA) Q3 2025 Earnings Call Transcript

Oct -30

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Escalade Reports Third Quarter 2025 Results

Oct -30

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Escalade Announces Executive Management Change

Oct -30

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Escalade Announces Third Quarter 2025 Results Conference Call Date

Oct -27

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Escalade's Drop Was Deserved

Oct -26

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Escalade Announces Acquisition of Gold Tip, a Leading Archery Brand, from Revelyst

Sep -29

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Escalade Q2 Revenue Falls 13%

Aug -05

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Sporting Goods

Expected Growth: 5%

Escalade's Sporting Goods segment growth is driven by increasing demand for outdoor recreation, fitness, and team sports. The company's focus on innovative products, strategic acquisitions, and expanding e-commerce presence also contribute to growth. Additionally, partnerships with key retailers and a strong brand portfolio, including Escalade Sports and Bear Archery, further support the segment's 5% growth rate.

7. Detailed Products

Archery

Escalade, Incorporated offers a wide range of archery products, including bows, arrows, and accessories from leading brands like Bear Archery and Trophy Ridge.

Billiards

Escalade's billiards segment includes pool tables, cues, and accessories from brands like Brunswick Billiards and CueTek.

Darts

Escalade's dart products include dartboards, darts, and accessories from brands like Unicorn and Winmau.

Table Tennis

Escalade's table tennis products include tables, paddles, and accessories from brands like Butterfly and Killerspin.

Basketball

Escalade's basketball products include hoops, backboards, and accessories from brands like Goalsetter and Silverback.

8. Escalade, Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Escalade, Incorporated faces moderate threat from substitutes, as luxury SUV buyers may consider alternative brands or models.

Bargaining Power Of Customers

Escalade, Incorporated has a strong brand reputation, and customers have limited bargaining power due to the luxury nature of the product.

Bargaining Power Of Suppliers

Escalade, Incorporated has a moderate level of dependence on suppliers, but has some flexibility in sourcing components and materials.

Threat Of New Entrants

The luxury SUV market has high barriers to entry, and new entrants would face significant challenges in competing with established brands like Escalade, Incorporated.

Intensity Of Rivalry

The luxury SUV market is highly competitive, with established brands like Escalade, Incorporated facing intense rivalry from other luxury brands.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.99%
Debt Cost 10.13%
Equity Weight 76.01%
Equity Cost 10.13%
WACC 10.13%
Leverage 31.56%

11. Quality Control: Escalade, Incorporated passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Escalade

A-Score: 6.0/10

Value: 7.9

Growth: 5.4

Quality: 6.2

Yield: 8.0

Momentum: 4.0

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Johnson Outdoors

A-Score: 5.4/10

Value: 8.7

Growth: 1.9

Quality: 3.3

Yield: 5.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

Stock-Card
Vista Outdoor

A-Score: 4.5/10

Value: 5.2

Growth: 5.0

Quality: 5.7

Yield: 0.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
JAKKS Pacific

A-Score: 4.1/10

Value: 5.9

Growth: 4.4

Quality: 4.6

Yield: 4.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

Stock-Card
Xponential Fitness

A-Score: 3.7/10

Value: 8.5

Growth: 5.7

Quality: 5.5

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

Stock-Card
American Outdoor Brands

A-Score: 3.6/10

Value: 6.9

Growth: 4.2

Quality: 4.2

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.65$

Current Price

12.65$

Potential

-0.00%

Expected Cash-Flows