Business
Clarus Reports Second Quarter 2020 Results, Continues to Navigate COVID-19 From a Position of Strength
SALT LAKE CITY, Aug. 10, 2020 (GLOBE NEWSWIRE) -- Clarus Corporation (NASDAQ: CLAR) (“Clarus” and/or the “Company”), a company focused on the outdoor and
About this update from Clarus Corporation
[{"type":"text","content":"SALT LAKE CITY, Aug. 10, 2020 (GLOBE NEWSWIRE) -- Clarus Corporation (NASDAQ: CLAR) (“Clarus” and/or the “Company”), a company focused on the outdoor and consumer industries, reported financial results for the second quarter ended June 30, 2020.\n Second Quarter 2020 Financial Summary vs. Same Year‐Ago Quarter Sales were $30.0 million compared to $47.0 million.Gross margin increased 140 basis points to 35.4% compared to 34.0%.Net loss was $(2.7) million, or $(0.09) per diluted share, compared to a net loss of $(0.7) million, or $(0.02) per diluted share.Adjusted net loss before non‐cash items was $(1.2) million, or $(0.04) per diluted share, compared to an adjusted net income of $1.5 million, or $0.05 per diluted share.Adjusted EBITDA was $(1.3) million compared to $1.6 million.Free cash flow (net cash provided by operating activities less capital expenditures) increased more than two-fold to $10.2 million compared to $3.0 million. Management Commentary “Despite a challenging consumer environment amidst a global pandemic, the strength of our well-diversified brand portfolio and multi-channel distribution platform was apparent in our second quarter results,” said Clarus President John Walbrecht. “For Black Diamond, the impact of COVID-19 caused our retail partners to close their doors, freezing pre-season and replenishment orders. However, demand improved each month in the quarter, particularly in regions that have shown marked progress in the recovery, like Europe. We also showed resilience with various key accounts who were able to serve their customers in other ways, such as online or curbside pickup. Sales in our direct-to-consumer channel were also resilient, growing 7% in the quarter with a 25% increase in sales through our own website. “In our Sierra business, domestic growth continued to accelerate in both our ‘Greenbox’ and OEM channels. This was partially offset by prolonged softness internationally, as those markets had retail ordinances preventing their opening and the absence of unique demand-drivers being experienced in the U.S., like the upcoming election. “Since the end of the second quarter, however, sales trends in both brands have continued to improve. Black Diamond is benefiting from partner retail doors beginning to open and our ability to fulfil orders has been largely unaffected. The fact that 86% of the br...