Clarus Corporation

Clarus reported second-quarter sales of $56.2 million versus $55.2 million a year ago, up 1.6%. Consolidated gross margin was 48.9% versus 35.6% last year, helped by $6.1 million of tariff refunds in Outdoor; excluding those refunds, consolidated gross margin would have been 38%. Adjusted EBITDA was $7.6 million, with Outdoor at $9.0 million and Adventure at $0.5 million. On a reported segment basis, Outdoor sales were up 8.5% and Adventure sales were down 11.9%. Free cash flow was $0.6 million, total debt was 0, and cash and cash equivalents were $28.9 million at June 30, 2026. For the full year 2026, Clarus maintained sales guidance of $245 million-$255 million, expects Adventure revenue of about $68 million and Outdoor revenue of about $182 million, and raised adjusted EBITDA guidance to $12 million-$13 million. Third-quarter 2026 sales are expected to be $66 million-$68 million, with adjusted EBITDA of about $3 million.

Warren Kanders said the quarter reflected continued operational execution and simplification, with underlying results solid even before the tariff refund benefit. He emphasized that Outdoor is benefiting from cleaner inventory, less discounting, and a shift to full-price selling, while Adventure is improving its organizational shape and margin profile as the business rescales. He also highlighted the ONWRD acquisition, the share repurchase activity, and the ongoing strategic alternatives review, saying the company is looking at actions to unlock value.

Mike Yates focused on the financial bridge behind the quarter and the updated outlook. He said Outdoor received $6.4 million related to the IEEPA tariff issue, including $6.1 million of tariff refunds and $0.3 million of interest income, and noted that excluding tariffs Outdoor gross margin would have been 36.5% and consolidated gross margin 38%. He also pointed to tight cost control in Adventure, where SG&A was down $0.6 million, headcount is down 20%, and the cost base is 11% lighter. On capital allocation, he reiterated that Clarus has no debt, ended the quarter with $28.9 million of cash, repurchased 153,331 shares for about $448,000, and still has about $42.4 million remaining under its buyback program.

Analysts asked about the risk of a warm winter reducing wholesale orders, and management said any impact looks modest so far; Neil Fiske said the fall order book and second-half outlook still look good. On gross margin, Yates suggested Adventure could hold around 40% in the back half and said Black Diamond’s gross margin excluding tariffs could model around 37% to 37.5%. On inflation, Fiske said the company is already seeing some cost inflation for spring 2027 and is watching the Middle East conflict closely, but believes the full impact is not yet clear.