Clarus Corporation

What they do

Clarus sells outdoor equipment and lifestyle products to outdoor specialty retailers, online retailers, its own websites, distributors and original equipment manufacturers. The Outdoor segment is led by Black Diamond, which makes climbing, skiing and technical mountain sports equipment. The Adventure segment covers Rhino-Rack roof racks, MAXTRAX and TRED recovery tracks, and RockyMounts bicycle racks. The company sold its Precision Sport segment (Sierra and Barnes bullets) in February 2024 and sold the PIEPS avalanche beacon business in July 2025.

Revenue drivers

• Outdoor segment (Black Diamond) — Generated $39.8 million of second quarter 2026 sales, or roughly 71% of the $56.2 million total, up 8.5% year-over-year. Management said the Mountain, Climb and Apparel categories drove 95% of segment revenue, and apparel grew for a fifth consecutive quarter.
• Adventure segment (Rhino-Rack, MAXTRAX, TRED, RockyMounts) — Generated $16.4 million of second quarter 2026 sales, about 29% of the total, down 11.9% year-over-year on an unfavorable wholesale market in Australia and North America for Rhino-Rack and MAXTRAX. Gross margin improved 420 basis points year-over-year on price and better retailer segmentation.
• International versus domestic sales — International sales were $31.6 million and domestic sales were $24.5 million in the second quarter of 2026, making international the larger share of the business and exposing results to foreign currency and trade policy.
• IEEPA tariff refund — The company received a $6.1 million refund of previously paid IEEPA tariffs, recorded as an offset to cost of goods sold, contributing about 1,090 basis points to the second quarter 2026 gross margin of 48.9%.

Recent performance

Second quarter 2026 sales were $56.2 million, up 1.6% from $55.2 million a year earlier. Gross margin was 48.9% versus 35.6%, aided by the $6.1 million IEEPA tariff refund, higher Outdoor volumes and favorable mix. Net income was $4.7 million, or $0.12 per diluted share, compared with a net loss of $8.4 million, or $(0.22), a year ago. Adjusted EBITDA was $7.6 million (13.6% margin) versus a loss of $(4.4) million. The company repurchased 153,331 shares for approximately $0.4 million during the quarter.

Strategy

Management describes a simplification strategy focused on concentrating inventory on its highest-volume, highest-margin Outdoor products and shifting Black Diamond toward a full-price premium model. The company is balancing targeted investment with cost and productivity initiatives in the Adventure segment, and in the second quarter completed the bolt-on acquisition of ONWRD Supply Co. brand and related assets for in-vehicle accessories. Jefferies LLC continues to assist the company in evaluating strategic alternatives. No long-term debt was reported on the December 31, 2025 balance sheet. The company has paid $0.10 per share in dividends annually from 2021 through 2025.

Risks

• CPSC and DOJ investigations — A CPSC investigation into avalanche transceiver reporting has resulted in staff recommending substantial civil monetary penalties, and the U.S. Department of Justice has commenced an investigation.
• Weak retail and wholesale demand — Adventure segment sales fell 11.9% in the second quarter of 2026 on an unfavorable wholesale market in Australia and North America for Rhino-Rack and MAXTRAX.
• Tariffs and trade policy — The company's results have already been affected by IEEPA tariffs, which produced both prior payments and a $6.1 million refund, and further changes in tariffs or trade policy could affect costs and margins.
• Product liability and recalls — Products are used in inherently risky outdoor pursuits, and the company has faced recall and liability claims tied to Black Diamond Equipment avalanche beacon transceivers.

Outlook

Management said it continues to expect full-year revenue to fall within its previously provided guidance range, despite geopolitical and macroeconomic headwinds. Outdoor performed well in a challenging market, and the company believes Black Diamond is positioned for growth with cleaner inventory, less discounting and a shift toward a full-price premium model. At Adventure, management said it has improved the organizational shape to capture more margin as the business re-scales. The company said it remains committed to unlocking the intrinsic value of both segments.