While releasing preliminary results for the third quarter, Clarus Corp said it expects another quarter of declining sales for Black Diamond (BD), the group’s biggest brand. After recording a 47 percent drop in the second quarter, hit by store closures in Europe and America, BD will post a 10 percent decline in revenues compared with the third quarter of 2019. However, the management remains upbeat, noting that the brand’s performance continued to improve sequentially each month of the quarter. It expects continued recovery into the fourth quarter.
Overall, the parent company of various brands such as BD, Pieps and Sierra Bullets expects revenues to increase by between 5 to 6 percent to $63 and $64 million, boosted by a 130 percent growth at Sierra. The recently acquired ammunition business benefited from strong domestic market conditions, a return to growth in the international markets, and positive reception of the new ammunition line.
Clarus also expects adjusted Ebitda for the group to range between $8-$9 million, an estimated increaseto be between 18 and 32 percent.
Meanwhile, as of Sept. 30, 2020, cash and cash equivalents are expected to be around $17.0 million and total debt should be close to $41.1 million, with about $40.0 million of remaining access on the company’s revolving line of credit.
The company will report its full third quarter 2020 results in early November.