Clarus(US:CLAR)2025-11-06 21:29Financial Performance - Third quarter sales increased by 3% to $69.3 million compared to $67.1 million in the same year-ago quarter[4] - Adjusted EBITDA for the third quarter was $2.8 million, representing an adjusted EBITDA margin of 4.0%, up from $2.4 million and 3.6% in the prior year[12] - Net loss narrowed to $1.6 million, or $(0.04) per diluted share, compared to a net loss of $3.2 million, or $(0.08) per diluted share in the year-ago quarter[10] - Gross margin improved slightly to 35.1% from 35.0% year-over-year, despite challenges in product mix and tariff impacts[8] - Selling, general and administrative expenses decreased to $26.2 million from $27.9 million, primarily due to lower employee-related expenses[9] - Domestic sales for Q3 2025 increased to $28,261 million, up from $24,365 million in Q3 2024, representing a growth of 7.8%[23] - Total sales for the nine months ended September 30, 2025, were $185,027 million, a decrease of 4.1% compared to $192,910 million for the same period in 2024[25] - Gross profit for Q3 2025 was reported at $24,366 million, an increase from $23,497 million in Q3 2024, reflecting a growth of 3.7%[23] - The adjusted gross margin for Q3 2025 was 35.1%, compared to 37.8% in Q3 2024, indicating a decline in profitability[27] - Operating loss for the nine months ended September 30, 2025, was $20,689 million, slightly higher than the loss of $20,269 million in the same period of 2024[25] - Net loss for Q3 2025 was $1,617 million, an improvement from a net loss of $3,157 million in Q3 2024, showing a reduction of 48.9%[23] - The company reported a basic net loss per share of $0.04 for Q3 2025, compared to a loss of $0.08 per share in Q3 2024[23] - Total operating expenses for Q3 2025 were $27,392 million, down from $28,855 million in Q3 2024, a decrease of 5.1%[23] - International sales for Q3 2025 were $41,086 million, a decrease of 3.9% from $42,750 million in Q3 2024[23] - Total sales for the nine months ended September 30, 2025, were $185,027, a decrease from $192,910 in the same period of 2024, representing a decline of 4.6%[33] - Gross profit for the nine months ended September 30, 2025, was $64,840, compared to $68,754 in 2024, reflecting a decrease of 5.6%[33] - Adjusted income from continuing operations for the nine months ended September 30, 2025, was $61, resulting in an adjusted EPS of $0.00, while the adjusted income for 2024 was $549 with an adjusted EPS of $0.01[33][35] Segment Performance - Adventure segment sales rose by 16% to $20.7 million, while Outdoor segment sales decreased by 1% to $48.7 million[5] - North America wholesale sales in the Outdoor segment increased by $3.1 million, or 16%[6] - The outdoor segment generated sales of $48,688 for the three months ended September 30, 2025, while the adventure segment generated $20,659, contributing to total sales of $69,347[36] - Sales for the Outdoor segment reached $129,672, and the Adventure segment generated $55,355, totaling $185,027 for the nine months ended September 30, 2025[38] - Operating loss for the Outdoor segment was $899, and for the Adventure segment was $6,978, totaling $12,812 for the nine months ended September 30, 2025[38] - Adjusted EBITDA for the Outdoor segment was $6,248, while the Adventure segment reported $449, resulting in a total of $(6,755) for the nine months ended September 30, 2025[38] - EBITDA margin for the Outdoor segment was 1.1%, while the Adventure segment reported (0.1)%, leading to an overall margin of (6.2)% for the nine months ended September 30, 2025[38] - Adjusted EBITDA margin for the Outdoor segment was 4.8%, and for the Adventure segment it was 0.8%, resulting in an overall margin of (0.0)% for the nine months ended September 30, 2025[38] Cash Flow and Debt - Cash and cash equivalents decreased to $29.5 million from $45.4 million[17] - Total debt increased slightly to $2.0 million from $1.9 million[17] Strategic Focus - The company is focused on aligning its cost structure and strategic roadmap with market realities to unlock growth opportunities in the Americas and Europe[3] Tax and Other Expenses - The company recorded an income tax benefit of $2,244 million for Q3 2025, compared to a benefit of $664 million in Q3 2024, indicating a significant increase in tax benefits[23] - The tax benefit for the nine months ended September 30, 2025, was $(3,877), resulting in a tax rate of 20.2%, compared to a tax rate of 17.9% in 2024[33][34] - The company reported a loss from continuing operations of $(15,295) for the nine months ended September 30, 2025, compared to a loss of $(15,112) in 2024[33][34] - Legal costs and regulatory matter expenses amounted to $2,050, contributing to a total of $3,463 for the nine months ended September 30, 2025[38] - Inventory fair value adjustments accounted for $120 in the Outdoor segment for the nine months ended September 30, 2025[38] - Impairment of indefinite-lived intangible assets was $1,565 for the nine months ended September 30, 2025[38] - Restructuring charges totaled $489 for the nine months ended September 30, 2025[38] - The company incurred restructuring charges of $1,009 for the nine months ended September 30, 2024, which were not present in the 2025 results[34][36] - Depreciation expenses for the Outdoor segment were $1,590, and for the Adventure segment were $1,064, totaling $2,654 for the nine months ended September 30, 2025[38]