Total revenues at Easton-Bell Sports dropped by 11.3 percent to $180.4 million in the third quarter ended Oct. 3, with a 0.9 percent decrease in net income to $6.3 million. The gross margin fell by 1.5 percentage points to 34.3 percent.
Team sports declined by 19.0 percent to $91.2 million with weakness in American football and ice hockey equipment as well as collectible football helmets, in a season that depends on those two sports. The drop in football orders was attributed to cutbacks at the institutional level, the hockey decline to product timing issues. The gross margin for this division fell by 2.9 percentage points.
The action sports segment took a smaller hit, down by 1.7 percent to $89.2 million, as sales of OEM cycling components, cycling accessories and powersports helmets weakened. These were partially offset by higher revenues from cycling gloves and helmets for snow sports. Its gross margin rose by 1.4 percentage points.
Focusing on new product launches in the next few quarters, the group intends to put more emphasis on mid-tier price points in cycling and baseball while retaining its premium positioning in categories such as hockey, where the consumer is described as resilient and prepared to pay for premium merchandise. All significant hockey product launches will be ahead of the Vancouver Olympics in February. Easton-Bell said its Seam snow helmet and other products in that category doing very well.
