Clarus Corporation Reports Fourth Quarter and Full Year 2024 Results

Clarus Corporation, a global leader in the design and development of equipment and lifestyle products for outdoor enthusiasts, has released its financial results for the fourth quarter and full year ended December 31, 2024. The company, headquartered in Salt Lake City, Utah, operates under well-known brand names such as Black Diamond, Rhino-Rack, MAXTRAX, and TRED Outdoors.

Financial Highlights

For the fourth quarter of 2024, Clarus reported sales of $71.4 million, a decrease from $76.5 million in the same quarter of the previous year. The gross margin improved to 33.4% from 28.9%, with an adjusted gross margin of 38.0% compared to 34.7% in the prior year. The net loss for the quarter was $65.5 million, or $(1.71) per diluted share, compared to a net loss of $8.4 million, or $(0.22) per diluted share, in the same period last year. Adjusted EBITDA from continuing operations was $4.4 million, with an adjusted EBITDA margin of 6.1%, up from $1.6 million and 2.1%, respectively.

For the full year 2024, sales were $264.3 million, down from $286.0 million in 2023. The gross margin for the year was 35.0%, up from 34.1%, with an adjusted gross margin of 37.5% compared to 35.6% in the previous year. The net loss for the year was $52.3 million, or $(1.37) per diluted share, compared to a net loss of $10.1 million, or $(0.27) per diluted share, in 2023. Adjusted EBITDA for the year was $6.9 million, with an adjusted EBITDA margin of 2.6%, compared to $7.3 million and 2.6% in the prior year.

Business and Operational Highlights

During the fourth quarter, Clarus completed the acquisition of RockyMounts, a Colorado-based brand specializing in bicycle transport products. This acquisition is expected to enhance Rhino-Rack’s product expertise in a key growth vertical. Sales in the Outdoor segment were $51.1 million, up from $50.1 million in the year-ago quarter, while sales in the Adventure segment decreased by 22.9% to $20.3 million.

Strategic Initiatives and Corporate Developments

Clarus has focused on simplifying and strengthening its core Outdoor segment while investing in new R&D and product development initiatives to scale the Adventure segment. The company has also made significant progress in product simplification and SKU rationalization, which has contributed to improved gross margins.

Management's Perspective

Warren Kanders, Clarus’ Executive Chairman, commented, “During 2024 we remained focused on executing against our strategic roadmap and positioning Clarus for profitable growth over the long term. Despite significant market headwinds, we took important steps during the year to simplify and strengthen the core at the Outdoor segment, while investing in new R&D and product development initiatives to scale the Adventure segment.”

Future Outlook

For fiscal year 2025, Clarus expects sales to range between $250 million to $260 million and adjusted EBITDA of approximately $14 million to $16 million, with an adjusted EBITDA margin of 5.9% at the mid-point of revenue and adjusted EBITDA. Capital expenditures are expected to range between $4 million to $5 million, and free cash flow is expected to range between $8 million to $10 million for the full year 2025.

SEC Filing: Clarus Corp [ CLAR ] - 8-K - Mar. 06, 2025