| ESCALADE, INCORPORATED                                 |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |
|                                                   |   |   |
| Indiana                                                |   | 13-2739290 |
| (State of incorporation)                               |   | (I.R.S. EIN) |

| 817 Maxwell Ave, Evansville, Indiana    |   | 47711      |
|-----------------------------------------|--------|------------|
| (Address of principal executive office) |   | (Zip Code) |

| 812-467-4449                          |
|---------------------------------------|
| (Registrant’s Telephone Number) |

| Large accelerated filer o                     |   | Accelerated filer o         |
|-----------------------------------------------|--------|-----------------------------|
| Non-accelerated filer o                       |   | Smaller reporting company x |
| (do not check if a smaller reporting company) |   |                        |

| Class                |   | Outstanding at October 25, 2010 |
|----------------------|--------|---------------------------------|
| Common, no par value |   | 12,762,422                      |

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|     |   |                                                                                                                                     |   | Page No. |
|----------|--------|------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|
|     |   |                                                                                                                                     |   |     |   |
| Part I.  |   | Financial Information:                                                                                                                   |   |     |   |
|     |   |                                                                                                                                     |   |     |   |
| Item 1 - |   | Financial Statements:                                                                                                                    |   |     |   |
|     |   |                                                                                                                                     |   |     |   |
|     |   | Consolidated Condensed Balance Sheets as of October 2, 2010, October 3, 2009, and December 26, 2009                                      |   | 3        |   |
|     |   |                                                                                                                                     |   |     |   |
|     |   | Consolidated Condensed Statements of Operations for the Three Months and Nine Months Ended October 2, 2010 and October 3, 2009           |   | 4        |   |
|     |   |                                                                                                                                     |   |     |   |
|     |   | Consolidated Condensed Statements of Comprehensive Income for the Three Months and Nine Months Ended October 2, 2010 and October 3, 2009 |   | 4        |   |
|     |   |                                                                                                                                     |   |     |   |
|     |   | Consolidated Condensed Statements of Cash Flows for the Nine Months Ended October 2, 2010 and October 3, 2009                            |   | 5        |   |
|     |   |                                                                                                                                     |   |     |   |
|     |   | Notes to Consolidated Condensed Financial Statements                                                                                     |   | 6        |   |
|     |   |                                                                                                                                     |   |     |   |
| Item 2 - |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                              |   | 11       |   |
|     |   |                                                                                                                                     |   |     |   |
| Item 3 - |   | Quantitative and Qualitative Disclosures about Market Risk                                                                               |   | 13       |   |
|     |   |                                                                                                                                     |   |     |   |
| Item 4 - |   | Controls and Procedures                                                                                                                  |   | 14       |   |
|     |   |                                                                                                                                     |   |     |   |
| Part II. |   | Other Information                                                                                                                        |   |     |   |
|     |   |                                                                                                                                     |   |     |   |
| Item 2 - |   | Issuer Purchases of Equity Securities                                                                                                    |   | 15       |   |
|     |   |                                                                                                                                     |   |     |   |
| Item 6 - |   | Exhibits                                                                                                                                 |   | 16       |   |
|     |   |                                                                                                                                     |   |     |   |
|     |   | Signatures                                                                                                                               |   | 16       |   |

----

| PART I. | FINANCIAL INFORMATION |
|---------|-----------------------|
|    |                  |
| Item 1. | FINANCIAL STATEMENTS  |

CONSOLIDATED CONDENSED BALANCE SHEETS

|                                                                                                                                  |   | October 2,2010 |    |   | October 3,2009 |   |    | December 26,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|----------------|--------|---------|------------------|--------|
|                                                                                                                                  |   | (Unaudited)    |    |   | (Unaudited)    |   |    | (Audited)        |   |
| ASSETS                                                                                                                                |   |           |    |   |           |   |    |             |   |
| Current Assets:                                                                                                                       |   |           |    |   |           |   |    |             |   |
| Cash and cash equivalents                                                                                                             |   | $              | 2,370   |   |           | $      | 5,735   |             |   | $ | 3,039 |   |
| Time deposits                                                                                                                         |   |           | 1,500   |   |           |   | — |             |   |   | 750 |   |
| Receivables, less allowance of $1,469; $1,635; and $1,485; respectively                                                               |   |           | 23,726  |   |           |   | 22,007  |             |   |   | 23,488 |   |
| Inventories                                                                                                                           |   |           | 25,684  |   |           |   | 27,428  |             |   |   | 20,905 |   |
| Prepaid expenses                                                                                                                      |   |           | 1,783   |   |           |   | 1,944   |             |   |   | 1,617 |   |
| Assets held for sale                                                                                                                  |   |           | — |   |           |   | 3,325   |             |   |   | — |   |
| Deferred income tax benefit                                                                                                           |   |           | 246     |   |           |   | 1,966   |             |   |   | 1,999 |   |
| Income tax receivable                                                                                                                 |   |           | — |   |           |   | 2,146   |             |   |   | 1,138 |   |
| TOTAL CURRENT ASSETS                                                                                                                  |   |           | 55,309  |   |           |   | 64,551  |             |   |   | 52,936 |   |
|                                                                                                                                  |   |           |    |   |           |   |    |             |   |   |   |   |
| Property, plant and equipment, net                                                                                                    |   |           | 19,929  |   |           |   | 19,094  |             |   |   | 21,493 |   |
| Intangible assets                                                                                                                     |   |           | 16,020  |   |           |   | 17,446  |             |   |   | 17,181 |   |
| Goodwill                                                                                                                              |   |           | 25,788  |   |           |   | 26,325  |             |   |   | 26,215 |   |
| Investments                                                                                                                           |   |           | 10,346  |   |           |   | 9,176   |             |   |   | 9,156 |   |
| Deferred income tax benefit                                                                                                           |   |           | 145     |   |           |   | 873     |             |   |   | — |   |
| Other assets                                                                                                                          |   |           | — |   |           |   | 706     |             |   |   | 257 |   |
|                                                                                                                                  |   | $              | 127,537 |   |           | $      | 138,171 |             |   | $ | 127,238 |   |
|                                                                                                                                  |   |           |    |   |           |   |    |             |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                            |   |           |    |   |           |   |    |             |   |   |   |   |
| Current Liabilities:                                                                                                                  |   |           |    |   |           |   |    |             |   |   |   |   |
| Notes payable                                                                                                                         |   | $              | 11,872  |   |           | $      | 36,577  |             |   | $ | 27,644 |   |
| Current portion of long-term debt                                                                                                     |   |           | 2,000   |   |           |   | — |             |   |   | — |   |
| Trade accounts payable                                                                                                                |   |           | 3,229   |   |           |   | 3,765   |             |   |   | 1,578 |   |
| Accrued liabilities                                                                                                                   |   |           | 14,885  |   |           |   | 14,164  |             |   |   | 12,738 |   |
| Deferred compensation                                                                                                                 |   |           | — |   |           |   | — |             |   |   | 1,288 |   |
| Income tax payable                                                                                                                    |   |           | 987     |   |           |   | — |             |   |   | — |   |
| TOTAL CURRENT LIABILITIES                                                                                                             |   |           | 32,973  |   |           |   | 54,506  |             |   |   | 43,248 |   |
|                                                                                                                                  |   |           |    |   |           |   |    |             |   |   |   |   |
| Other Liabilities:                                                                                                                    |   |           |    |   |           |   |    |             |   |   |   |   |
| Long-term debt                                                                                                                        |   |           | 7,500   |   |           |   | — |             |   |   | — |   |
| Deferred income tax liability                                                                                                         |   |           | — |   |           |   | — |             |   |   | 1,226 |   |
| Deferred compensation                                                                                                                 |   |           | — |   |           |   | 1,262   |             |   |   | — |   |
| TOTAL LIABILITIES                                                                                                                     |   |           | 40,473  |   |           |   | 55,768  |             |   |   | 44,474 |   |
|                                                                                                                                  |   |           |    |   |           |   |    |             |   |   |   |   |
| Stockholders’ Equity:                                                                                                           |   |           |    |   |           |   |    |             |   |   |   |   |
| Preferred stock:                                                                                                                      |   |           |    |   |           |   |    |             |   |   |   |   |
| Authorized 1,000,000 shares; no par value, none issued                                                                                |   |           |    |   |           |   |    |             |   |   |   |   |
| Common stock:                                                                                                                         |   |           |    |   |           |   |    |             |   |   |   |   |
| Authorized 30,000,000 shares; no par value, issued and outstanding - 12,762,422; 12,623,542; and 12,656,737; shares respectively |   |           | 12,762  |   |           |   | 12,624  |             |   |   | 12,657 |   |
| Retained earnings                                                                                                                     |   |           | 69,365  |   |           |   | 64,019  |             |   |   | 65,341 |   |
| Accumulated other comprehensive income                                                                                                |   |           | 4,937   |   |           |   | 5,760   |             |   |   | 4,766 |   |
|                                                                                                                                  |   |           | 87,064  |   |           |   | 82,403  |             |   |   | 82,764 |   |
|                                                                                                                                  |   | $              | 127,537 |   |           | $      | 138,171 |             |   | $ | 127,238 |   |

----

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

|                                         |   | Three Months Ended |   |   | Nine Months Ended |   |
|----------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                         |   | October 2, 2010    |   |   | October 3, 2009   |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
|                                         |   |               |   |   |              |   |   |   |   |   |   |   |
| Net sales                                    |   | $                  | 28,565 |   |              | $      | 26,358 |   |   | $ | 89,471 |   |   | $ | 86,957 |   |
|                                         |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Costs, expenses and other income:            |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Cost of products sold                        |   |               | 19,369 |   |              |   | 18,558 |   |   |   | 59,813 |   |   |   | 60,233 |   |
| Selling, general and administrative expenses |   |               | 6,469  |   |              |   | 6,571 |   |   |   | 21,398 |   |   |   | 23,342 |   |
| Amortization                                 |   |               | 368    |   |              |   | 617 |   |   |   | 1,042 |   |   |   | 2,024 |   |
| Operating income                             |   |               | 2,359  |   |              |   | 612 |   |   |   | 7,218 |   |   |   | 1,358 |   |
|                                         |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                        |   |               | (223   | )      |              |   | (630 | ) |   |   | (1,005 | ) |   |   | (1,530 | ) |
| Other income                                 |   |               | 275    |   |              |   | 966 |   |   |   | 586 |   |   |   | 1,197 |   |
| Income before income taxes                   |   |               | 2,411  |   |              |   | 948 |   |   |   | 6,799 |   |   |   | 1,025 |   |
|                                         |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income tax                     |   |               | 1,239  |   |              |   | 330 |   |   |   | 2,963 |   |   |   | 480 |   |
|                                         |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                   |   | $                  | 1,172  |   |              | $      | 618 |   |   | $ | 3,836 |   |   | $ | 545 |   |
|                                         |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Per share data:                              |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                     |   | $                  | 0.09   |   |              | $      | 0.05 |   |   | $ | 0.30 |   |   | $ | 0.04 |   |
|                                         |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                   |   | $                  | 0.09   |   |              | $      | 0.05 |   |   | $ | 0.29 |   |   | $ | 0.04 |   |

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

| Net income                                                                                                                                     |   | $      | 1,172   |   |   | $      | 618    |   |   | $      | 3,836   |   |   | $      | 545     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
|                                                                                                                                           |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |
| Realization of previously unrealized (gains) losses on securities available for sale, net of tax (benefit) of $0, $75, $0 and $0, respectively |   |   | — |   |   |   | (116   | )      |   |   | — |   |   |   | — |   |
|                                                                                                                                           |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |
| Foreign currency translation adjustment                                                                                                        |   |   | 2,382   |   |   |   | 1,339  |   |   |   | 171     |   |   |   | 2,636   |   |
|                                                                                                                                           |   |   |    |   |   |   |   |   |   |   |    |   |   |   |    |   |
| Comprehensive income                                                                                                                           |   | $      | 3,554   |   |   | $      | 1,841  |   |   | $      | 4,007   |   |   | $      | $3,181  |   |

----

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

|                                                                                   |   | Nine Months Ended |    |
|----------------------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                                   |   | October 2,2010    |    |   | October 3,2009 |   |
|                                                                                   |   |              |    |   |   |   |
| Operating Activities:                                                                  |   |              |    |   |   |   |
| Net income                                                                             |   | $                 | 3,836   |   |   | $ | 545 |   |
| Depreciation and amortization                                                          |   |              | 3,437   |   |   |   | 4,605 |   |
| Loss (gain) on disposal of property and equipment                                      |   |              | (4      | ) |   |   | 20 |   |
| Gain on disposal of Investments held for sale                                          |   |              | — |   |   |   | (432 | ) |
| Stock-based compensation                                                               |   |              | 128     |   |   |   | 362 |   |
| Adjustments necessary to reconcile net income to net cash used by operating activities |   |              | (408    | ) |   |   | 6,333 |   |
| Net cash provided by operating activities                                              |   |              | 6,989   |   |   |   | 11,433 |   |
|                                                                                   |   |              |    |   |   |   |   |   |
| Investing Activities:                                                                  |   |              |    |   |   |   |   |   |
| Purchase of property and equipment                                                     |   |              | (1,047  | ) |   |   | (1,594 | ) |
| Purchase of short-term time deposits                                                   |   |              | (750    | ) |   |   | — |   |
| Proceeds from sale of property and equipment                                           |   |              | 4       |   |   |   | 268 |   |
| Proceeds from sale of investments                                                      |   |              | — |   |   |   | 1,645 |   |
| Net cash provided (used) by investing activities                                       |   |              | (1,793  | ) |   |   | 319 |   |
|                                                                                   |   |              |    |   |   |   |   |   |
| Financing Activities:                                                                  |   |              |    |   |   |   |   |   |
| Net decrease in notes payable                                                          |   |              | (5,773  | ) |   |   | (9,948 | ) |
| Principal payment on long-term debt                                                    |   |              | (500    | ) |   |   | — |   |
| Proceeds from exercise of stock options                                                |   |              | 49      |   |   |   | — |   |
| Stock option forfeiture                                                                |   |              | (22     | ) |   |   | — |   |
| Director stock compensation                                                            |   |              | 139     |   |   |   | 69 |   |
| Net cash used by financing activities                                                  |   |              | (6,107  | ) |   |   | (9,879 | ) |
| Effect of exchange rate changes on cash                                                |   |              | 242     |   |   |   | 245 |   |
| Net increase (decrease) in cash and cash equivalents                                   |   |              | (669    | ) |   |   | 2,118 |   |
| Cash and cash equivalents, beginning of period                                         |   |              | 3,039   |   |   |   | 3,617 |   |
| Cash and cash equivalents, end of period                                               |   | $                 | 2,370   |   |   | $ | 5,735 |   |

----

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

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----

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| In thousands     |   | October 2, 2010 |   |   | October 3, 2009 |   |   | December 26, 2009 |   |
|------------------|--------|-----------------|--------|--------|-----------------|--------|--------|-------------------|--------|
|             |   |            |   |   |            |   |   |              |   |
| Raw materials    |   | $               | 6,525  |   |            | $      | 8,640  |              |   | $ | 6,357 |   |
| Work in progress |   |            | 3,224  |   |            |   | 2,468  |              |   |   | 1,142 |   |
| Finished goods   |   |            | 15,935 |   |            |   | 16,320 |              |   |   | 13,406 |   |
|             |   | $               | 25,684 |   |            | $      | 27,428 |              |   | $ | 20,905 |   |

----

----

| In thousands            |   | October 2, 2010 |   |   | October 3, 2009 |   |   | December 26, 2009 |   |
|-------------------------|--------|-----------------|--------|--------|-----------------|--------|--------|-------------------|--------|
|                    |   |            |   |   |            |   |   |              |   |
| Current assets          |   | $               | 19,350 |   |            | $      | 17,373 |              |   | $ | 19,113 |   |
| Non-current assets      |   |            | 11,647 |   |            |   | 12,959 |              |   |   | 11,939 |   |
| Total assets            |   |            | 30,997 |   |            |   | 30,332 |              |   |   | 31,052 |   |
|                    |   |            |   |   |            |   |   |              |   |   |   |   |
| Current liabilities     |   |            | 11,488 |   |            |   | 10,796 |              |   |   | 9,536 |   |
| Non-current liabilities |   |            | 7,280  |   |            |   | 9,482  |              |   |   | 9,864 |   |
| Total liabilities       |   |            | 18,768 |   |            |   | 20,278 |              |   |   | 19,400 |   |
|                    |   |            |   |   |            |   |   |              |   |   |   |   |
| Net assets              |   | $               | 12,229 |   |            | $      | 10,054 |              |   | $ | 11,652 |   |

|              |   | Three Months Ended |   |   | Nine Months Ended |   |
|-------------------|--------|--------------------|--------|--------|-------------------|--------|
|              |   | October 2, 2010    |   |   | October 3, 2009   |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
|              |   |               |   |   |              |   |   |   |   |   |   |   |
| Net Sales         |   | $                  | 10,366 |   |              | $      | 9,583 |   |   | $ | 23,709 |   |   | $ | 19,819 |   |
| Gross Profit      |   |               | 3,969  |   |              |   | 4,580 |   |   |   | 9,835 |   |   |   | 8,859 |   |
| Net Income (Loss) |   |               | 363    |   |              |   | 522 |   |   |   | (182 | ) |   |   | 102 |   |

----

----

----

|                                     |   | Nine Months Ended |    |
|------------------------------------------|--------|-------------------|---------|
| In thousands                             |   | October 2, 2010   |    |   | October 3, 2009 |   |
| Beginning Balance                        |   | $                 | 536     |   |   | $ | 954 |   |
| Additions for current year tax positions |   |              | — |   |   |   | 7 |   |
| Additions for prior year tax positions   |   |              | — |   |   |   | 291 |   |
| Settlements                              |   |              | (262    | ) |   |   | — |   |
| Reductions Settlements                   |   |              | — |   |   |   | — |   |
| Reductions for prior year tax positions  |   |              | (25     | ) |   |   | — |   |
| Ending Balance                           |   | $                 | 249     |   |   | $ | 1,252 |   |

----

|                            |   | October 2, 2010 |   |   | October 3, 2009 |   |
|---------------------------------|--------|-----------------|--------|--------|-----------------|--------|
| In thousands                    |   | Carrying Amount |   |   | Fair Value      |   |   | Carrying Amount |   |   | Fair Value |   |
| Financial assets                |   |            |   |   |            |   |   |   |   |   |   |   |
| Cash and cash equivalents       |   | $               | 2,370  |   |            | $      | 2,370 |   |   | $ | 2,996 |   |   | $ | 2,996 |   |
| Time deposits                   |   | $               | 1,500  |   |            | $      | 1,500 |   |   | $ | — |   |   | $ | — |   |
| Financial liabilities           |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Note payable and Long-term debt |   | $               | 21,372 |   |            | $      | 21,372 |   |   | $ | 36,577 |   |   | $ | 36,577 |   |

----

----

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|                             |   | As of and for the Three MonthsEnded October 2, 2010 |   |
|----------------------------------|--------|-----------------------------------------------------|--------|
| In thousands                     |   | Sporting Goods                                      |   |   | Office Products |   |   | Corp. |   |   | Total |   |
|                             |   |                                                |   |   |   |   |   |   |   |   |   |   |
| Revenues from external customers |   | $                                                   | 20,727 |   |   | $ | 7,838 |   |   | $ | — |   |   | $ | 28,565 |   |
| Operating income (loss)          |   |                                                | 2,979  |   |   |   | 187 |   |   |   | (807 | ) |   |   | 2,359 |   |
| Net income (loss)                |   |                                                | 1,656  |   |   |   | (132 | ) |   |   | (352 | ) |   |   | 1,172 |   |

|                             |   | As of and for the Nine MonthsEnded October 2, 2010 |   |
|----------------------------------|--------|----------------------------------------------------|--------|
|  In thousands               |   | Sporting Goods                                     |   |   | Office Products |   |   | Corp. |   |   | Total |   |
|                             |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues from external customers |   | $                                                  | 63,255 |   |   | $ | 26,216 |   |   | $ | — |   |   | $ | 89,471 |   |
| Operating income (loss)          |   |                                               | 9,501  |   |   |   | 842 |   |   |   | (3,125 | ) |   |   | 7,218 |   |
| Net income (loss)                |   |                                               | 4,888  |   |   |   | 49 |   |   |   | (1,101 | ) |   |   | 3,836 |   |
| Total assets                     |   | $                                                  | 69,105 |   |   | $ | 39,350 |   |   | $ | 19,082 |   |   | $ | 127,537 |   |
|                             |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                             |   | As of and for the Three MonthsEnded October 3, 2009 |   |
|----------------------------------|--------|-----------------------------------------------------|--------|
|  In thousands               |   | Sporting Goods                                      |   |   | Office Products |   |   | Corp. |   |   | Total |   |
|                             |   |                                                |   |   |   |   |   |   |   |   |   |   |
| Revenues from external customers |   | $                                                   | 17,642 |   |   | $ | 8,716 |   |   | $ | — |   |   | $ | 26,358 |   |
| Operating income (loss)          |   |                                                | 942    |   |   |   | 222 |   |   |   | (552 | ) |   |   | 612 |   |
| Net income (loss)                |   |                                                | (233   | ) |   |   | (560 | ) |   |   | 1,411 |   |   |   | 618 |   |

|                             |   | As of and for the Nine MonthsEnded October 3, 2009 |   |
|----------------------------------|--------|----------------------------------------------------|--------|
| In thousands                     |   | Sporting Goods                                     |   |   | Office Products |   |   | Corp. |   |   | Total |   |
|                             |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues from external customers |   | $                                                  | 56,612 |   |   | $ | 30,345 |   |   | $ | — |   |   | $ | 86,957 |   |
| Operating income (loss)          |   |                                               | 3,154  |   |   |   | 1,722 |   |   |   | (3,518 | ) |   |   | 1,358 |   |
| Net income (loss)                |   |                                               | (33    | ) |   |   | 409 |   |   |   | 169 |   |   |   | 545 |   |
| Total assets                     |   | $                                                  | 72,254 |   |   | $ | 41,499 |   |   | $ | 24,418 |   |   | $ | 138,171 |   |

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|                                                          |   | Three Months Ended |   |   | Nine Months Ended |   |
|---------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
| All amounts in thousands                                      |   | October 2, 2010    |   |   | October 3, 2009   |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
|                                                          |   |               |   |   |              |   |   |   |   |   |   |   |
| Weighted average common shares outstanding                    |   |               | 12,740 |   |              |   | 12,624 |   |   |   | 12,712 |   |   |   | 12,620 |   |
| Dilutive effect of stock options and restricted stock units   |   |               | 569    |   |              |   | 385 |   |   |   | 484 |   |   |   | 163 |   |
| Weighted average common shares outstanding, assuming dilution |   |               | 13,309 |   |              |   | 13,009 |   |   |   | 13,196 |   |   |   | 12,783 |   |

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| Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

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|                                         |   | Three Months Ended |   |   | Nine Months Ended |   |
|----------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                         |   | October 2, 2010    |   |   | October 3, 2009   |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
| Net revenue                                  |   |               | 100.0  | %      |              |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Cost of products sold                        |   |               | 67.8   | %      |              |   | 70.4 | % |   |   | 66.9 | % |   |   | 69.3 | % |
| Gross margin                                 |   |               | 32.2   | %      |              |   | 29.6 | % |   |   | 33.1 | % |   |   | 30.7 | % |
| Selling, administrative and general expenses |   |               | 22.6   | %      |              |   | 24.9 | % |   |   | 23.8 | % |   |   | 26.8 | % |
| Amortization                                 |   |               | 1.3    | %      |              |   | 2.4 | % |   |   | 1.2 | % |   |   | 2.3 | % |
| Operating income                             |   |               | 8.3    | %      |              |   | 2.3 | % |   |   | 8.1 | % |   |   | 1.6 | % |

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| In thousands                   |   | October 2,2010 |   |   | October 3, 2009 |   |    | December 26, 2009 |   |
|--------------------------------|--------|----------------|--------|--------|-----------------|--------|---------|-------------------|--------|
|                           |   |           |   |   |            |   |    |              |   |
| Notes payable short-term       |   | $              | 11,872 |   |            | $      | 36,577  |              |   | $ | 27,644 |   |
| Current portion long-term debt |   |           | 2,000  |   |            |   | — |              |   |   | — |   |
| Long term debt                 |   |           | 7,500  |   |            |   | — |              |   |   | — |   |
| Total bank debt                |   | $              | 21,372 |   |            | $      | 36,577  |              |   | $ | 27,644 |   |

| Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

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| Item 4. | CONTROLS AND PROCEDURES |
|---------|-------------------------|

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| PART II. | OTHER INFORMATION                         |
|----------|-------------------------------------------|
|     |                                      |
| Item 1.  | Not Required.                             |
|     |                                      |
| Item 1A. | Not Required.                             |
|     |                                      |
| Item 2.  | (c) ISSUER PURCHASES OF EQUITY SECURITIES |

| Period                                                                     |   | (a) Total Number of Shares (or Units) Purchased |    |   | (b) Average Price Paid per Share (or Unit) |   |   | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |   |   | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs |   |
|----------------------------------------------------------------------------|--------|-------------------------------------------------|---------|--------|--------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|--------|
| Shares purchases prior to 07/10/2010 under the current repurchase program. |   |                                            | 982,916 |   |                                       | $      | 8.84   |                                                                                            |   |   | 982,916                                                                                                                     |   |   | $ | 2,273,939 |   |
| Third quarter purchases:                                                   |   |                                            |    |   |                                       |   |   |                                                                                            |   |   |                                                                                                                        |   |   |   |   |   |
| 07/11/2010–08/07/2010                                                |   | None                                            |    |   | None                                       |   |   | No Change                                                                                       |   |   | No Change                                                                                                                   |   |
| 08/08/2010-09/04/2010                                                      |   | None                                            |    |   | None                                       |   |   | No Change                                                                                       |   |   | No Change                                                                                                                   |   |
| 09/05/2010-10/02/2010                                                      |   | None                                            |    |   | None                                       |   |   | No Change                                                                                       |   |   | No Change                                                                                                                   |   |
| Total share purchases under the current program                            |   |                                            | 982,916 |   |                                       | $      | 8.84   |                                                                                            |   |   | 982,916                                                                                                                     |   |   | $ | 2,273,939 |   |

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| Item 3. | Not Required. |
|---------|---------------|
|    |          |
| Item 5. | Not Required. |
|    |          |
| Item 6. | Exhibits      |

|   | (a) | Exhibits |
|--------|-----|----------|

|   | Number |   | Description                                                     |
|--------|--------|--------|-----------------------------------------------------------------|
|   |   |   |                                                            |
|   | 31.1   |   | Chief Executive Officer Rule 13a-14(a)/15d-14(a) Certification. |
|   |   |   |                                                            |
|   | 31.2   |   | Chief Financial Officer Rule 13a-14(a)/15d-14(a) Certification. |
|   |   |   |                                                            |
|   | 32.1   |   | Chief Executive Officer Section 1350 Certification.             |
|   |   |   |                                                            |
|   | 32.2   |   | Chief Financial Officer Section 1350 Certification.             |

SIGNATURE

|                   |   | ESCALADE, INCORPORATED                     |
|------------------------|--------|--------------------------------------------|
|                   |   |                                       |
| Date: November 2, 2010 |   | /s/ Deborah Meinert                        |
|                   |   | Vice President and Chief Financial Officer |
|                   |   | (On behalf of the registrant and in her    |
|                   |   | capacities as Principal Financial Officer  |
|                   |   | and Principal Accounting Officer)          |

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