Easton-Bell Sports reported a 4.8 percent sales increase to $203.4 million for the first quarter ended April 2, its fifth consecutive increase in quarterly sales, thanks to a strong performance of its action sports division.
Action sports bolstered sales by 16.6 percent, driven by cycling helmets and accessories, higher sales of Bell powersports helmets to specialty dealers, growth in Easton branded cycling wheels and components and the introduction of Giro branded cycling shoes. At constant currency rates, the division's sales were up by 15.8 percent increase.
Sales of the team sports division decreased by 2.6 percent due to baseball product launches shifting to the second half of the year and reduced demand for hockey sticks at retail, partially offset by growth in baseball, softball and hockey protective equipment and hockey skates. On a currency-neutral basis sales dropped by 3.1 percent. A shift in new product launches will generate sales and margin improvement in the back half of 2011, according to the company.
The gross margin narrowed to 31.4 percent from 33.4 percent, affected by escalating fuel costs and the shifting in the sales timing of higher-margin baseball. Operating income dropped to $11.0 million from $11.7 million due to increased compensation expenses. On an adjusted basis, operating income was up by 8.6 percent.
