Rommel Dionisio's questions to ESCALADE (ESCA) leadership • Q2 2025
Question
Rommel Dionisio of Aegis Capital Corporation inquired about the impact of current tariff and retail inventory situations on the company's new product launch cadence. He also followed up with a request for more detail on the specific categories that created an unfavorable product mix, impacting gross margins during the quarter.
Answer
President & CEO, Armen Boehm, clarified that Escalade will not delay its product launch cadence and is, in fact, accelerating new product introductions in partnership with key accounts for the holiday season. Regarding the unfavorable product mix, Boehm explained it was driven by two factors: poor weather conditions impacting sales of seasonal basketball and outdoor recreational products, and a strategic, temporary pause in shipments with retailers to avoid exorbitant tariff costs, which affected Q2 results.