Clarus Corp., the Utah-based parent company of Black Diamond and Pieps, saw its sales growth accelerate in the second quarter of 2021, with its top line increasing by 144 percent from the year earlier, when the impact of the Covid-19 pandemic was at a peak, reaching $73 million.
Favorable consumer trends in the outdoor market and inventory normalization at the retail level helped sales at Black Diamond to surge by 122 percent in the second quarter to $44.9 million. By category, Mountain was up by 182 percent, Climb up 90 percent, and Ski increased by 111 percent. Hardgoods growth of 120 percent was driven by double-digit and triple-digit growth across the product portfolio, particularly in lighting, climbing shoes, harnesses, T-poles and gloves. The footwear and apparel businesses were up by 252 percent and 132 percent, respectively. Black Diamond reported an operating profit of $0.7 million in the second quarter versus a loss of $4.0 million the year earlier.
Alongside Black Diamond and Sierra, Clarus will also have a third reporting segment following the recent acquisition of Rhino-Rack, an Australia-based manufacturer and distributor of roof racks, mounting systems, luggage boxes, carriers and other automotive accessories.
Overall, Clarus saw its gross margin in the quarter rise by 2.80 percentage points over the year earlier to 38.2 percent, as improvements in channel and product mix and foreign exchange benefits more than offset unfavorable impacts on the supply chain and logistics due to the Covid-19 pandemic.
Adjusted Ebitda in the second quarter amounted to a record $11.7 million compared to a loss of $1.3 million the year earlier. Net income was $1.8 million compared to a net loss of $2.7 million the year earlier while adjusted net income stood at $6.8 million versus an adjusted net loss of $1.2 million the year earlier.
Clarus now expects full-year sales at the group level to increase by 56 percent to $350 million. It anticipates that Black Diamond sales for 2021 will increase by 26 percent to $215 million, up from $205 million in its previous outlook. Sierra sales, including Barnes, are seen rising by 80 percent to $95 million from $90 million previously. Rhino-Rack is expected to contribute sales of about $40 million to second-half results.
Clarus also forecasts that its adjusted Ebitda will rise by approximately 132 percent to $52 million, above previous guidance of $38 million, supported by a $6 million contribution from Rhino-Rack.
