Clarus Corporation (NASDAQ:CLAR) Q3 2023 Earnings Call Transcript

Mark Smith: Okay. Great. Thank you.

Operator: [Operator Instructions] Your next question comes from the line of Joe Altobello with Raymond James. Your line is now open.

Unidentified Analyst: Good afternoon. This is actually Martin on for Joe. Just a quick question. I saw with the destocking and heightened promotional environment, that’s been pretty aggressive as of late, and it sounds like we might expect something similar in 4Q. But just beyond that, how confident are you that this is going to start dissipating, and which segment might have the most pressure just kind of starting into the early part of next year?

Michael Yates: Well, this destocking of inventory has been going on for a while. So level of confidence is obviously low, because it has been going on for a while. But like I just mentioned with Mark, I think we’re starting to see Adventure turn the corner, Black Diamond stabilize. I’d say the one I’m most worried about is the Precision Sports business as it’s just starting to see the excess inventory in the channels here over the last couple of months.

Unidentified Analyst: Got it. Thank you. And just looking at the holiday season, do you think it’s going to be kind of — any opportunity for you to move any inventory?

Michael Yates: No. Nothing out of the ordinary. Outdoor will have its Black Friday, specials, like it has every year, but nothing out of the ordinary.

Unidentified Analyst: Got it. Thank you, Mike.

Michael Yates: Sure.

Operator: At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Mr. Yates for closing remarks.

End of Q&A:

Michael Yates: Thank you, Bella. I want to thank everyone for attending the call this afternoon and your continued support and interest in Clarus, and we look forward to speaking with you next time we get together. Thanks again for joining. Take care.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.