Easton-Bell Sports reported nets sales of $780.4 million in the fiscal year ended Dec. 28, 2013, down 5.7 percent from a year earlier.
The owner of Riddell, Bell and Giro helmets and Easton hockey and baseball products, reported gross margin increased 40 basis points to 34.5 percent of sales. Selling, general and administrative expenses rose to 30.2 percent of revenues from 27.8 percent.
Income from operations was $25.7 million, down 39.4 percent from $42.3 million in fiscal 2012. The company reported a net loss before taxes of $17 million, compared with a net loss of $2.2 million in fiscal 2012. Net loss climbed to $19 million from $2.8 million after included a $3.8 million negative impact from foreign currency exchange. Team Sports sales reach $435.7 million, down $26.6 million or 5.5 percent, including a $900,000 negative impact from unfavorable foreign currency exchange. Team Sports net sales decreased due to lower sales of:
Easton hockey products from loss of market share and inflated retail inventories, particularly within the stick category from multiple manufacturer product launches, Riddell football helmets due to the prior year benefitting from the implementation of the industry's new ten-year helmet life policy, and Riddell football products sold in the mass channel, due to our exit from the channel.
These negative trends were partially offset by sales growth:
Easton baseball and softball products driven by market share gains and the introduction of the Mako bat, Riddell non-helmet football products and the performance of reconditioning services Action Sports sales, which include cycling sales, fell $20.2 million, or 5.8 percent, to $346.9 million, including a $300,000 negative impact from unfavorable foreign currency exchange. Action Sports net sales decreased due to lower sales of: cycling helmets and accessories in the specialty and mass channels resulting from inclement weather earlier in the year, leading to excess retail inventories and competitive pressure in the market, Easton cycling products due to quality issues, and the exit of the low-margin, non-core fitness products category.
Bell powersports helmets from market share gains, driven by product innovation and expanded geographic distribution, Giro snowsports products as the market rebounds from the two recent dismal weather related seasons, juvenile licensed cycling products in the mass channel under the recently acquired Disney license, Giro cycling apparel, due to entrance into this category, and Giro footwear from continued market share gains.
Easton-Bell ended the fiscal year with inventory valued at $126.9 million, down 10.4 percent from a year earlier.
