Escalade, Incorporated (ESCA) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touchtone phone. To withdraw your question, please press star, then two. Please note that this event is being recorded. I would now like to turn the conference over to Patrick Griffin, Vice President, Corporate Development. Please go ahead, sir. Thank you, Operator. On behalf of the entire team at Escalade, I'd like to welcome you to our second quarter 2025 results conference call. Leading the call with me today are President and CEO Armin Boom and Stephen Warren, our Chief Financial Officer. Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties. including the risk described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements. At the conclusion of our prepared remarks, we will open the line for questions. With that, I would like to turn the call over to Armen. Thank you, Patrick, and welcome to everyone joining us on today's call. Our second quarter results reflect the strong operating leverage our team has built over the past few years. Despite a $1.6 million tariff-related headwind, we delivered a solid margin profile. Excluding this impact, our cross-margin would have been approximately 28% for the quarter. Net sales declined approximately 13% year over year, which was in line with our expectations. However, we expanded cross-margin by nearly 60 basis poi...