Clarus Corporation (CLAR) Q2 2025 Earnings Call Transcript
Net Sales $55.2 million, a slight increase over the same period last year. The increase reflected solid performances in both European and North American wholesale at Outdoor and improvement to North American wholesale and direct-to-consumer channels at Adventure.
Direct-to-Consumer Performance at Outdoor Softened as consumers continue to pull back following Liberation Day and continued deterioration of legacy OEM accounts at Adventure.
Sale of PIEPS Snow Safety Brand Completed for $9.1 million, aligning with Clarus' simplification strategy and bolstering the balance sheet.
Global Wholesale and Direct-to-Consumer Businesses at Adventure Increased by approximately 8%, partially driven by bike rack sales, but offset by continued soft demand at certain legacy retailers.
Customer-Specific OEM Sales Declined by approximately $3.1 million year-over-year, contributing to an overall sales decline in the Adventure segment.
Black Diamond Operating Results Q2 revenue came in at $36.5 million, up 2.1% from prior year. Excluding FX contracts, revenue is up 3.9% in current dollars and 2.3% in constant currency.
North American Digital Direct-to-Consumer Revenue Down 20.1% year-over-year, reflecting a strategy to tighten discounting in the pro channel and reducing off-price sales in e-commerce.
Europe Wholesale Revenue Up 4.8% year-over-year and flat in constant currency.
International Distributor Markets Revenue Up 81.3%, reflecting a permanent shift in the timing of deliveries.
Black Diamond Operating Gross Margin 34.9%, up 80 basis points year-over-year. Excluding FX contracts, gross margins would have expanded even more.
Adjusted EBITDA for Outdoor A loss of $213,000. Excluding PIEPS, adjusted EBITDA for Black Diamond in Q2 was $303,000 versus a small loss in the same period last year.
Consolidated Gross Margin 35.6%, compared to 36.1% in the prior year quarter. Adjusted gross margin was 36.5%, compared to 37.4% in the year-ago quarter.
Adjusted EBITDA A loss of $2.1 million or an adjusted EBITDA margin of negative 3.8%. Adjusted EBITDA by segment was $311,000 in Adventure and a negative $214,000 at Outdoor.
Free Cash Flow A use of $11.3 million in Q2 2025, compared to a use of $744,000 in Q2 2024. The decline was due to poor working capital performance, primarily inventory and accounts receivable.
Cash and Cash Equivalents $28.5 million as of June 30, 2025, compared to $45.4 million at December 31, 2024.
Consolidated Inventory $91.5 million at the end of Q2 2025, up due to pull-forward inventory purchases to mitigate tariffs.
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Clarios Accelerates Sodium-Ion Battery Production Plans with Strategic Partnerships
- Strategic Partnership Deepening: Clarios has deepened its investment in Swedish Altris through a Joint Development Agreement (JDA) aimed at accelerating product development for sodium-ion technology and securing a resilient European supply chain, thereby enhancing market competitiveness.
- Prototype Battery Assembly: Clarios is collaborating with InoBat to assemble the first sodium-ion test cells in Slovakia, which demonstrate strong cold-start capabilities down to -25°C, ensuring reliable operation of modern vehicles in cold environments and meeting stringent OEM requirements.
- Production Plans: Clarios plans to launch serial production of low-voltage sodium-ion batteries by the end of 2026 at a dedicated facility in Europe or the U.S., which not only supports OEM sustainability goals but also reduces reliance on non-European raw materials, enhancing supply chain security.
- Sustainability Strategy: By prioritizing partnerships and sourcing strategies within Western markets, Clarios aims to establish a secure supply chain for sodium-ion technology, promoting sustainability and addressing the growing demand for battery innovation from global automotive customers.
Clarios Launches Trailer Battery Manager to Enhance Logistics Efficiency
- Real-Time Monitoring: Clarios' new Trailer Battery Manager provides real-time insights into battery health and charge status, helping operators avoid liftgate failures and ensuring on-time deliveries, which is especially critical in temperature-controlled transport.
- Risk Reduction: By monitoring battery status, operators can take action before issues arise, reducing delays and roadside assistance costs that can exceed $700, significantly enhancing operational efficiency.
- Customer Feedback Response: This feature is a direct response to customer needs, empowering fleet managers to monitor batteries remotely, saving time and costs while improving customer satisfaction.
- Platform Expansion: The Trailer Battery Manager enhances Clarios' Connected Services platform by providing comprehensive visibility into battery health, aiding fleets in optimizing resource use and reducing total cost of ownership.
Brunswick (BC) Exceeds Expectations in Q3 Earnings and Revenues
Earnings Performance: Brunswick (BC) reported quarterly earnings of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.84, but down from $1.17 per share a year ago, marking a 15.48% earnings surprise.
Revenue Growth: The company generated revenues of $1.36 billion for the quarter, surpassing estimates by 7.89% and showing an increase from $1.27 billion year-over-year, with consistent outperformance in revenue estimates over the last four quarters.
Stock Outlook: Brunswick shares have underperformed the S&P 500 this year, and the stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market, while future earnings estimates remain mixed.
Industry Context: The Leisure and Recreation Products industry ranks in the top 36% of Zacks industries, suggesting that industry performance can significantly influence Brunswick's stock, with investors advised to monitor earnings estimate revisions closely.
Clarus Corporation (CLAR) Q2 2025 Earnings Call Transcript
Earnings Conference Call: Clarus Corporation held its Q2 2025 earnings conference call on July 31, 2025, featuring key executives including Executive Chairman Warren Kanders and CFO Mike Yates, discussing the company's financial results for the quarter ending June 30, 2025.
Forward-Looking Statements: The call included a safe harbor statement by Matt Berkowitz, emphasizing that forward-looking statements made during the discussion are based on current estimates and assumptions, which may be subject to risks and uncertainties affecting actual outcomes.
Clarus Sets Second Quarter 2025 Conference Call for Thursday, July 31, 2025, at 5:00 p.m. ET
Conference Call Announcement: Clarus Corporation will hold a conference call on July 31, 2025, at 5:00 pm ET to discuss its second-quarter financial results for the period ending June 30, 2025, with results released after market close on the same day.
Company Overview: Clarus Corporation, based in Salt Lake City, specializes in outdoor equipment and lifestyle products, selling under brands like Black Diamond® and Rhino-Rack®, and emphasizes innovation and safety in its offerings.
Clarus Corporation Completes Sale of PIEPS Snow Safety Brand
Sale of PIEPS: Clarus Corporation has completed the sale of PIEPS and JetForce avalanche pack intellectual property to a private investment firm for €7.8 million (approximately $9.1 million), aiming to simplify its business and strengthen its balance sheet.
Company Overview: Clarus Corporation, based in Salt Lake City, specializes in outdoor equipment and lifestyle products, with brands like Black Diamond and Rhino-Rack, focusing on innovation and safety for outdoor enthusiasts.
Clarios Accelerates Sodium-Ion Battery Production Plans with Strategic Partnerships
- Strategic Partnership Deepening: Clarios has deepened its investment in Swedish Altris through a Joint Development Agreement (JDA) aimed at accelerating product development for sodium-ion technology and securing a resilient European supply chain, thereby enhancing market competitiveness.
- Prototype Battery Assembly: Clarios is collaborating with InoBat to assemble the first sodium-ion test cells in Slovakia, which demonstrate strong cold-start capabilities down to -25°C, ensuring reliable operation of modern vehicles in cold environments and meeting stringent OEM requirements.
- Production Plans: Clarios plans to launch serial production of low-voltage sodium-ion batteries by the end of 2026 at a dedicated facility in Europe or the U.S., which not only supports OEM sustainability goals but also reduces reliance on non-European raw materials, enhancing supply chain security.
- Sustainability Strategy: By prioritizing partnerships and sourcing strategies within Western markets, Clarios aims to establish a secure supply chain for sodium-ion technology, promoting sustainability and addressing the growing demand for battery innovation from global automotive customers.
Clarios Launches Trailer Battery Manager to Enhance Logistics Efficiency
- Real-Time Monitoring: Clarios' new Trailer Battery Manager provides real-time insights into battery health and charge status, helping operators avoid liftgate failures and ensuring on-time deliveries, which is especially critical in temperature-controlled transport.
- Risk Reduction: By monitoring battery status, operators can take action before issues arise, reducing delays and roadside assistance costs that can exceed $700, significantly enhancing operational efficiency.
- Customer Feedback Response: This feature is a direct response to customer needs, empowering fleet managers to monitor batteries remotely, saving time and costs while improving customer satisfaction.
- Platform Expansion: The Trailer Battery Manager enhances Clarios' Connected Services platform by providing comprehensive visibility into battery health, aiding fleets in optimizing resource use and reducing total cost of ownership.
Brunswick (BC) Exceeds Expectations in Q3 Earnings and Revenues
Earnings Performance: Brunswick (BC) reported quarterly earnings of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.84, but down from $1.17 per share a year ago, marking a 15.48% earnings surprise.
Revenue Growth: The company generated revenues of $1.36 billion for the quarter, surpassing estimates by 7.89% and showing an increase from $1.27 billion year-over-year, with consistent outperformance in revenue estimates over the last four quarters.
Stock Outlook: Brunswick shares have underperformed the S&P 500 this year, and the stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market, while future earnings estimates remain mixed.
Industry Context: The Leisure and Recreation Products industry ranks in the top 36% of Zacks industries, suggesting that industry performance can significantly influence Brunswick's stock, with investors advised to monitor earnings estimate revisions closely.
Clarus Corporation (CLAR) Q2 2025 Earnings Call Transcript
Earnings Conference Call: Clarus Corporation held its Q2 2025 earnings conference call on July 31, 2025, featuring key executives including Executive Chairman Warren Kanders and CFO Mike Yates, discussing the company's financial results for the quarter ending June 30, 2025.
Forward-Looking Statements: The call included a safe harbor statement by Matt Berkowitz, emphasizing that forward-looking statements made during the discussion are based on current estimates and assumptions, which may be subject to risks and uncertainties affecting actual outcomes.
Clarus Sets Second Quarter 2025 Conference Call for Thursday, July 31, 2025, at 5:00 p.m. ET
Conference Call Announcement: Clarus Corporation will hold a conference call on July 31, 2025, at 5:00 pm ET to discuss its second-quarter financial results for the period ending June 30, 2025, with results released after market close on the same day.
Company Overview: Clarus Corporation, based in Salt Lake City, specializes in outdoor equipment and lifestyle products, selling under brands like Black Diamond® and Rhino-Rack®, and emphasizes innovation and safety in its offerings.
Clarus Corporation Completes Sale of PIEPS Snow Safety Brand
Sale of PIEPS: Clarus Corporation has completed the sale of PIEPS and JetForce avalanche pack intellectual property to a private investment firm for €7.8 million (approximately $9.1 million), aiming to simplify its business and strengthen its balance sheet.
Company Overview: Clarus Corporation, based in Salt Lake City, specializes in outdoor equipment and lifestyle products, with brands like Black Diamond and Rhino-Rack, focusing on innovation and safety for outdoor enthusiasts.
