SCOTTS VALLEY, CA (BRAIN)—Easton-Bell Sports, Inc. reported sales increased 10.2 percent in the third quarter to $198.8 million from $180.4 million a year ago, while gross margin increased to 35 percent from 34.4 percent. Team Sports sales grew 12.4 percent while Action Sports revenues grew 8 percent. Net earnings declined largely due to increased incentive compensation expense.
Action Sports net sales increased $7.1 million or 8 percent due to increased sales of snowsports helmets and goggles, powersports helmets and cycling components, partially offset by lower sales of licensed youth cycling helmets. Sales to key specialty independent bike and snow retailers increased approximately 16 percent compared to the third quarter of 2009.
"Overall, we are pleased with our top line growth and margin improvement during this important quarter in the sporting goods equipment market," said Paul Harrington, president and CEO.
Net earnings reached $3 million versus $6.3 million a year ago, a 52.4 percent decline. The bottom line decline also reflects higher interest costs and the impact of foreign currency fluctuations.
