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Jun 30, 2020

Clarus Q2 2020 Earnings Report

Clarus reported second quarter results, navigating COVID-19 from a position of strength.

Key Takeaways

Clarus Corporation reported sales of $30.0 million for the second quarter, a decrease compared to the same year-ago quarter. The company's gross margin increased, and selling, general, and administrative expenses decreased due to cost-saving initiatives. Net loss was $(2.7) million, and adjusted EBITDA was $(1.3) million.

Sales in the second quarter were $30.0 million, compared to $47.0 million in the same year-ago quarter.

Black Diamond sales were down 47%, while Sierra sales were up 7%.

Gross margin increased 140 basis points to 35.4% compared to the year-ago quarter.

Selling, general and administrative expenses decreased 16% to $14.5 million.

Total Revenue
$30M
Previous year: $47M
-36.1%
EPS
-$0.04
Previous year: $0.05
-180.0%
Gross Margin
35.4%
SG&A Expenses
$14.5M
Adjusted EBITDA
-$1.3M
Gross Profit
$10.6M
Previous year: $16M
-33.5%
Cash and Equivalents
$21.5M
Previous year: $1.97M
+993.9%
Free Cash Flow
$10.2M
Previous year: $3.02M
+238.7%
Total Assets
$231M
Previous year: $217M
+6.5%

Clarus

Clarus

Forward Guidance

Clarus believes they are well on track to achieve the goals laid out last quarter, including liquidity improvements, cost-saving measures, key sales assumptions and current demand trends.

Positive Outlook

  • Liquidity improvements
  • Cost-saving measures
  • Key sales assumptions
  • Current demand trends
  • Optionality created in brands to adapt to changing consumer landscape