Clarus Corporation, a leader in outdoor equipment and lifestyle products, reported its financial results for the three and nine months ended September 30, 2024. The company experienced a decline in total sales, with Q3 2024 sales at $67.1 million, down 17.4% from $81.3 million in Q3 2023. For the nine-month period, total sales were $192.9 million, a decrease of 7.9% from $209.5 million in the prior year. The decline in sales was attributed primarily to a significant drop in the Outdoor segment, which saw a decrease of $21.4 million, partially offset by a $4.8 million increase in the Adventure segment.

Despite the decrease in sales, the cost of goods sold also fell to $43.6 million in Q3 2024 from $54.0 million in Q3 2023, leading to a gross profit of $23.5 million, down from $27.3 million. The gross margin improved slightly to 35.0% from 33.6% in the prior year. Total operating expenses for Q3 2024 were $28.9 million, a slight decrease from $30.5 million in Q3 2023. However, the company reported an operating loss of $(5.4) million for Q3 2024, compared to a smaller loss of $(3.2) million in the same quarter of 2023. The net loss for Q3 2024 was $(3.2) million, worsening from a net loss of $(1.3) million in Q3 2023.

For the nine months ended September 30, 2024, the company reported a net income of $13.2 million, a significant turnaround from a net loss of $(1.8) million in the same period of 2023. This improvement was bolstered by a gain of $40.6 million from the sale of its Precision Sport segment, completed on February 29, 2024, for $175.7 million in cash. The sale allowed Clarus to settle all outstanding borrowings on its revolving credit facility and term debt.

Clarus also completed the acquisition of TRED Outdoors Pty Ltd. on October 9, 2023, for approximately $6.8 million, which is expected to enhance its global revenue base and profitability. The company recorded total assets of $375.3 million as of September 30, 2024, down from $495.3 million at the end of 2023, while total liabilities decreased significantly to $66.9 million from $203.2 million. Total stockholders’ equity increased to $308.5 million from $292.1 million.

The company continues to face challenges, including ongoing legal disputes related to product safety investigations, which may impact its financial position. Legal expenses increased to $579,000 for the nine months ended September 30, 2024, compared to $216,000 in the same period of 2023.