Clarus Corp., the parent company of Black Diamond and other brands, had mixed results in the third quarter, with net income dropping by 14.3 percent to $3.5 million on 8.0 percent higher sales of $60.2 million. The gross margin was down by 1.6 percentage points to 34.1 percent, due to foreign exchange headwinds and the impact from tariffs implemented as part of the U.S.-China trade dispute. Adjusted Ebitda declined by 4.2 percent to $6.8 million. Revenues in the third quarter continued to be driven by the momentum in the Black Diamond brand, with sales up by around 14 percent, led by skis and apparel. However, the continued softness in the bullet and ammunition market weighed on Sierra, which dropped by about 24 percent. This led the company to reduce its full-year outlook. It now anticipates sales to grow by about 7 percent to $228 million. Although it still expects Black Diamond to grow by a low double-digit rate, it now forecasts that sales at Sierra will decrease by double digits. Previously, Clarus expected sales to grow by around 8 percent to $230 million and Sierra’s sales to decrease by a high-single digit. More in The Outdoor Industry Compass.

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