Clarus Corporation Reports $264.3 Million Revenue for Fiscal Year 2024, Down 7.6%

Clarus Corporation reported a total revenue of $264.3 million for the fiscal year ending December 31, 2024, a decrease of 7.6% from $286.0 million in 2023. The decline was attributed to reduced sales in both its Outdoor and Adventure segments, with domestic sales falling to $105.7 million and international sales dropping to $158.6 million. The company's gross profit also decreased to $92.6 million, down from $97.5 million in the previous year, although the gross margin improved slightly to 35.0% from 34.1% due to a favorable product mix and reduced OEM sales.

The company experienced significant operational changes, including the sale of its Precision Sport segment, which generated net proceeds of approximately $37.9 million. This strategic divestiture allowed Clarus to focus on its core outdoor and adventure brands, which include Black Diamond, Rhino-Rack, MAXTRAX, and TRED. The company also completed the acquisition of RockyMounts in December 2024, further expanding its portfolio in the outdoor equipment market. However, Clarus recorded substantial impairment charges, including $36.3 million for goodwill and $8.5 million for indefinite-lived intangible assets, primarily related to the Adventure segment.

Clarus's total operating expenses rose to $163.0 million, up from $118.6 million in 2023, driven by increased legal costs and restructuring charges. The company reported an operating loss of $70.4 million compared to a loss of $21.1 million in the prior year. The increase in legal expenses was largely due to ongoing regulatory matters with the U.S. Consumer Product Safety Commission (CPSC), which has recommended substantial civil penalties against the company.

As of December 31, 2024, Clarus had a total cash balance of $45.4 million, a significant increase from $11.3 million in 2023, primarily due to the proceeds from the sale of the Precision Sport segment. The company’s total liabilities decreased to $61.0 million from $203.2 million, reflecting the settlement of outstanding debts following the divestiture. Clarus's employee headcount stood at over 470, with ongoing efforts to streamline operations and reduce costs.

Looking ahead, Clarus aims to leverage its iconic brands and focus on organic growth while pursuing strategic acquisitions. The company anticipates that its restructuring efforts will yield long-term benefits, although it remains cautious about market conditions and consumer demand. The management expressed optimism about the potential for recovery and growth in the outdoor enthusiast market, supported by favorable trends in outdoor activities and health and wellness.