Easton-Bell Sports Inc, owner of the Easton, Bell and Giro cycling brands, alongside activities in action sports, American football, hockey, baseball and softball, has released its financial results for the fiscal quarter ended 3 July 2010.
The company had net sales of US$202.8 million in fiscal Q2 2010, an increase of 8.3% year on year when compared to US$187.3 million of net sales in Q2 2009. Meanwhile, in fiscal Q2 2010, Easton-Bell Sports generated operating income of U$20.1 million, an increase of 36% compared to US$14.8 million of operating income in the second quarter of fiscal 2009.
The company’s Action Sports division saw net sales increase US$7.0 million in Q2 2010, or 8.1% year on year. This was due to increased sales of cycling helmets, accessories and wheels and snowsports eyewear.
“Overall we are pleased with our results,” said Paul Harrington, President and Chief Executive Officer. “The increase in second quarter sales at higher margins combined to increase our operating leverage and allowed us to fund investments in new product introductions.
“With consumer spending still uncertain in the near to mid-term, these investments will be critical to growing future market share.”
Easton-Bell Sports’ gross margin for the second quarter of fiscal 2010 was 34.0%, as compared to 32.2% for the second quarter of fiscal 2009. The margin improvement related primarily to a better sales mix, improved manufacturing efficiencies and gains in foreign currency exchange rates.
