Consumer Sporting Goods Company Escalade's Q4 Sales Dip, CEO Foresees Margin Boost In 2024
Portfolio Pulse from Shivani Kumaresan
Escalade Inc (NASDAQ:ESCA) reported a Q4 FY23 sales decline of 9.2% YOY to $65.51 million, missing estimates. Despite softer consumer demand, improved demand in basketball and indoor games, and operational efficiencies led to a gross margin increase to 24.3% and an operating income increase to $5.0 million. The company announced a quarterly dividend of $0.15 per share, payable on April 22, 2024. CEO Walter P. Glazer, Jr. anticipates margin improvements in 2024 due to lower inventory costs and operational improvements. ESCA shares closed up 4.25% at $13.75.
April 01, 2024 | 12:16 pm
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Escalade Inc reported a Q4 FY23 sales decline but saw operational improvements and margin increases. A quarterly dividend of $0.15 per share was announced, with the CEO forecasting margin improvements in 2024.
Despite the sales decline, the operational improvements and margin increases, along with the announcement of a quarterly dividend, are positive signals for investors. The CEO's optimistic outlook for 2024 further supports a positive short-term impact on ESCA's stock price.
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