Clarus Corporation is seeking to maximize the synergies between Black Diamond and the other brands in its portfolio. BD has just announced that it will take on the distribution in Europe of SKINourishment's skincare brand, ClimbOn, benefitting from its large sales network in the region. BD showed the line at the recent OutDoor by Ispo show and has already begun shipments for the current autumn season.
Clarus took over SKINourishment last November for access to its 100 percent food-grade, plant-based skin products. They are also genetically unmodified and vegan, and have not been tested on animals.
The management of Clarus tried to impress investors with the potential for the development of BD and its other brands at a conference organized by Gateway in San Francisco earlier this month.
It pointed out that three of its brands – BD, Sierra Bullets and Pieps – share the same characteristics: a leading market share in a key market, a history of innovation, significant brand awareness among core customers (at least in the U.S.) and opportunities for global growth through a go-to-market strategy.
Driven by innovation, BD and Sierra have managed to gain market share in the last couple of years, raising their combined revenues from $148 million in 2017 to $212.1 million in 2018 and trending toward a level of $230 million in 2019. On the other hand, the intellectual property of Pieps in the avalanche and ski safety equipment sector is being used to expand BD's portfolio of electronic applications and is expected to boost Pieps' sales through BD's international sales structure.
BD is banking on innovations to drive brand awareness and distribution for BD in the wider outdoor market beyond core consumers. Major growth opportunities exist for the brand in apparel and footwear. Its launch of a collection of climbing shoes in the spring of 2018 resulted in the sale of more than 100,000 pairs by the end of the year, well above an initial target of 20,000 pairs. The brand already claims the number-three spot in the U.S. climbing shoe market. Its apparel range features a 1.4-ounce windproof jacket with liquid crystalline running through its fabric.
As for Sierra, the brand is moving from bullets to ready-to-shoot ammunition, potentially boosting revenues per unit sold and resulting in growth of 25 to 50 percent in the business.