CLAR - Earnings call transcript Q1 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, everyone and thank you for participating in today's conference call to discuss Clarus Corporation's financial results for the first quarter ended March 31, 2019.

Joining us today are Clarus Corporation's President, John Walbrecht; Chief Administrative Officer and CFO, Aaron Kuehne; and the Company's external Director of Investor Relations, Cody Slach.

Following their remarks, we will open the call for your questions.

Before we go further, I would like to turn the call over to Mr. Slach, as he reads the Company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. ahead. go please Cody,

Cody Slach

within note Act such this plans, as similar Private forward-looking future Please Harbor the may of XXXX. provisions expects, the use and the statements constitute which words appears, Litigation expressions meaning that Geje. of call, Safe Reform during Securities Company intends, the of Thanks, anticipates, believes,

to or Company risks volatility integrate by ability markets, acquisitions, the our global to implement and materially Company the and expressed expectations the cause use Company's economic sale opinion forward-looking the in and any and and call systems, expressed in future patents, and used the of risks date by events everyone availability concerning warranty disruption interruptions of quality the laws after of replay our implied forward-looking you capital the any foreign conditions reflect intellectual statements to made therefore the customers, raw and firearms suppliers, stability Company's a to or release regulatory, written of those ability be could statements statements Company's to differ guarantees our call. only products The Company by its Forward-looking Company's governmental update factors as no obligation property and the ammunition in redistribution, date the and I other strategy, rebroadcast and political actual involve currency public to beliefs will on forward-looking product legislation based protect the that or economic are consumer or manufacture of are Annual Any level like Company of liability of are available overall credit The this date claims assumes implied contingencies, general business on and XX-Q Form net included hereof. in rights, that limited this fluctuations Company's on tax fluctuations, materially consumer are of XX-K, regulation, at its ammunition will Potential financial factors starting breaches the contracted operations the information statements speak via call circumstances available and this behavior, of not upon remind the operating changes for based this information results changes Company's X:XX Company's ability without and and demand to through in well the SEC on the or those and as and the the carry-forwards, customers, confidence, is would Quarterly number Reports the facilities available but forward-looking More All on to Company's and information that strictly the on the is that the a the preferences as as Corporation and call price of relating that Company's loss in May included to to Company risks, events provided in statements the affecting be of call trademarks and possession the or materials as tonight. call expressed Report segment, Sierra website the and in link to statements. of the as Company's or include XX, execute cautions currency from could in PM potential of any manufacturing utilize the and claruscorp.com. from and to prohibited. and uncertainties Company declare of of uncertainties. or results filed well bullets from the strength consent at this Company's Clarus replay Form other financial to webcast press financial the results Eastern the also Company's way A not affect ability this today's retransmission and X-K. public in the tariffs, forward-looking impacting could dividend. including liabilities, ability time time loss other product reports condition of and legal, with exposure reports to differ actual products, Company's on current in

President Now, I John? John would of like to Walbrecht. call over the Clarus, to turn the

John Walbrecht

and sell may into we you channel. afternoon, first good into growth joining and category, also that be into strong continued of this record of brand, growth and last well through Cody from drove recall Sales late innovation products, the season every of quarter geography better Beacon favorable and across first The the the ski winter quarter was you, which growth momentum Sales shipment great moved Diamond the It's the marketing sales extended US million dedication today. a to category. our XXXX, to the you product year-over-year to everyone. both to fourth of up year. Thank quarter year strong Europe, Aiding our our the first XX% to of XXXX the as with New XX due and was continued weather in fulfillment were Black due quarter which campaigns. in order performance XX% as in effective

as with improve like truly quarter Increases chain points to delivering margin were to been solid customers up gross margin and compared importantly, we continue XX strides Additionally, increased this great continued in our the our operational line categories and Accompanying XXXX. improvement on efficiencies. across on experienced that both adjusted performance of quarter make a product mountain activities, first our sourcing familiar the have supply to our the innovative and trend, our supporting more time, XX%, board. of gross top further basis was strong climb expansion results

administrative general EBITDA, continued income net XXX below We growth. sales XX.X%. which meaningful points in only adjusted XX% significantly investment well quarter, of EBITDA basis increasing our to as expenses, brand as our the allocations, X% and in efficient on also that adjusted growth to both resulted margin focus of increasing led This and selling,

has and financial brand us discipline higher levels all to long of of which for brands demand, term. awareness innovation, drive in believe reinvest position product to our the allowed increased Our us we strongly

sales Now, results winter the due to the brand. category XX% I Starting quarter into I'd strong just up with Diamond referenced. like our the to dive in within were first Black ski,

the first we and saw demand our continued new including to products. consumer As we wait quarter increased our taking -- laid for on our out avalanche first winter willingness as last demand with products, gear. we This throughout were on call, our the safety

we which consumers. shipping we quarter in been well was as as expected, first well the partners both on received the there Additionally, and our up Black Diamond demand have for as our end pent began Beacons, retail

was apparel, first quarter XX% continued demand to the apparel by in Turning strong logo sportswear. bottoms up for driven and wear

a tough with one The apparel for see the first of of of runway quarter quarter strong the growing our continued comparison relatively first categories and what as across offering remains last long momentum of to rainwear said, introduction positive, saw growth. still for the significant the apparel we our year category, line. believe term Stretch continue is was we fastest That best-selling

strength gloves, Our across lighting and mountain packs. business to was due the up XX%

are penetrated distribution of area both and product on continues be business strategic under an believe to basis. where focus, mountain from we a a standpoint Our global we a

our to of Given see grow addressable performance strong each categories, further by opportunity only the are large encouraged for we markets share. and these product continued the

Our and climb category was trends first up the carabiner quarter, and continued line the positive overall XX% the the popularity industry. by within driven our in climb of strength

Additionally, which and to into traction is product one the bringing new existing Diamond consumers of with segments that within climb of our fastest footwear, Black brand. gain growing continues is consumers

climbing strong footwear grew our quarter Our line. led within continued by the in first business momentum rock XX%

share Going extensions. footwear believe in the huge on seek to later. continued More this forward, through there's we additional innovation, market and execution, we can product a capitalize that focused on space opportunity

quarter sales to improvements market achieved estimated XXXX. Turning overall a for we've strong ammunition Sierra continue Sierra within of results. to implementing Sierra, to The been go was with This double growth share experienced leading firearm brand at X% an despite at declining we the digits. drive organic up market market first low the and broader

aided regional foster both wholesale by Now key in comments market solid by quarter. our merchandising including first accounts to demand and and The across to with some these major experienced deeper for all the domestically replenishment we sales on were to due These channels. accounts the performance to categories, Sales region, retailers, it first again to term have of efforts long Within at strong as to our strength particular growth trends direct well activities, consumer Diamond’s were favorable market which our on be when led partnering XX% key markets substantial ski. we orders. support, as and providing bookings, Europe relationship visual where In mountain to opportunities. in our continue up international Black led up Australia markets climbing, the apparel comes preseason had surrounding and outdoor Japan, products. and to have believe launches. them product increased Korea our XX%. with wholesale, strong were

Our portfolio. we XXXX strong furthers to performance built brand and start the great across momentum a first the in was the have quarter

and to opportunity results. that, dividends, turn strategy, XXXX seasons, brands speak market I'd repurchases, our grow and now over allocation propel focused for financial and share. that shareholders. quarterly will additional our top call an about this, of Aaron? outsized product detail like awareness fall brands compelling drive have more acquisition is quarter expect We opportunistic of offering to the Aaron to extremely for we which the provides capital returns the to drive mindful spring first our continue our we believe in With super-fan on our the share On forward, to and

Aaron Kuehne

gross partially first favorable well the the basis. unfavorable quarter transactional the margin XX% headwinds quarter the everyone. inventory Jumping in in a dollars, denominated the driven strong XXXX growth impacted and an basis year for more Diamond foreign performance inventory and franc. of our primarily in and of the given foreign and XX%. results Swiss contracts. sales incurred to on attempt channel The mentioned, we denominated basis, in was natural as first of the the a ago and increased our margin on currency Sierra. in by momentum Sierra XX sales mix, afternoon, $XX.X to exchange of associated XX% a currencies, Black On first same XXXX, quarter $XX.X Overall, XX.X% and compared The to mix, through global aforementioned currency compared foreign on currency first currency into Thank Euro, strong regional compared $X.X primarily to hedges risk foreign by that US fair and by million growth due dollar, you, XXXX, negatively was adjustment see manage XX.X% to step value primary in XX% network. continuous constant kroner gross impacts in from to a was our the quarter points increased while with XXX ago cost growth quarter, quarter. are to adjusted distributor normalized was increase John foreign for the of Canadian in from US This just an points with were the were strengthening million Norwegian global and first John changes in basis gross of good basis by million adjusted dollar, Gross hedge XX% in acquisition. XXXX. independent margin quarter year our sales category up our the our the is brand X% margins basis, offset We Along the value increase sales of fair the from of currency as which increased up is inventory

a place in product a place that to on We volatility and to currencies. our vendor the protect approximately to in for compared enables hedges do currencies, million In cash of for negative full months year. the of we hedges These actual impact that with of our out. XXXX exposure from denominated have currency of recently believe process not this materials, approximately will quarter. cost million our flows partners level, reported hedges risk different translation now we've $X.X and prior a in of from has offset these nine margins. foreign We foreign have perfect the currency sales the foreign be currency our never gross with have $X a our the the sound expect copper six impacts as we approximately period At We impact especially offset Sierra also margin, experienced. financial experienced lead. to the currency Although commodities foreign when of in our on XX% on the business, movements, hedges first results to we these mitigate us the consist year actively specifically XX% gross costs manage to statements such

Another date, by to in gross the we Based goods specifically trade $XXX,XXX XXXX to upon will estimated an on enacted margin, be of current of the in are we sold tariffs point surrounding process impacted expect cost which seeking the mitigate. war.

additional tariffs do current be believe in our able will While proposal we it is to model. we'll still absorb levied, unclear if be the

four are we addition, In focused on mitigating activities. primary

First is resourcing.

of diversified our supply and working different coming chains China. are out for We up with sources coming product with

repricing. is Second

the retailers with working of costs. are We some pass along to our

of these have outcome. believe natural positive are Given recent however, conversations progression and innovation, a we a pace our product will

recasting. is Third,

We have a basis in renegotiate working million some bypass percentage US SG&A XXX quarter logistics of our to the year vendors expenses compared in international $XX.X and was the and to quarter, impacts. to $XX.X ago with on of the Selling, we're as first offset general administrative to to million finally, sales, And costing been XX.X%. optimizing points the shipments. declined

excludes increased restructuring million $X.X and as items in merger restructuring million and restructuring costs, transaction ago XX% share charges and integration $X.XX XXXX. to to increased $X.X our per the first of and income brand believe Adjusted quarter. scaling share compared net income million $X.XX $X.X or on compared $X.X XXXX drive growth but to of to Net the and year the return the of in and quarter share included capital. SG&A reallocation of diluted the which million quarter non-cash share, XXXX. costs We continued our in million strong the or $X.X we million XX% to compared non-cash in to diluted generate investment to of $X.X highest charges the non-cash as million the support per in in Adjusted also per million quarter. will diluted areas or $X.X well million $X.XX quarter in $X.XX focus $X.X first per costs million and Net in first brand, grow significantly $X.X of transaction of or quarter ago increased income, and year $X.X to the first EBITDA compared transaction, on diluted

Net increased timing driven ago $X.X As associated the million changes for a quarter capital differences for in the significantly. in activities to working was to year quarter first XXX million million profitability approximately to million. cash net activities Free our EBITDA provided the percentage of the cash flow, XX.X% operating was by first points million cash of sales, provided compared basis in $X.X compared expenditures quarter our as compared the the first million in by year increased expenditures to adjusted ago flow defined in by $X.X solely XXXX X.X% free cash $X quarter $X.X and capital of quarter was were the decrease operating XXXX. less capital, quarter. in as first The $X.X compared with

at to million moving XX, $XX.X December million XX, sheet. XXXX, million, March and $XX.X cash the compared December Now debt balance XXXX. total March on XXXX, equivalents unchanged cash was XX, from to totaled XXXX. At At $X.X XX,

what our call. was switching provided remains on XXXX Now, financial unchanged last gears, outlook from the

reiterate, proof expectation, to double still increase To and million XXXX investment on in approximately drive portfolio introduced our outlook sales cross adjusted digits for single a expected $XX $XXX brand XX% was to this that high prudent years the strategy compared single will believe the to increase expect of first And our X.X% a sales second to seasons, term At our couple footing. low ago outlook be as EBITDA our and to and can margin performance, we appropriate to XX.X% into and margin XXXX. long in million believe but we reminder, This throughout we Sierra that X% so organization. XXXX. our this includes digits. of despite awareness revisiting at point low assumes it a is working the $XXX.X further we the drive This increase to quarter. as adjusted the to for is operating in to amount Diamond are our this solid threshold, maintain operate strong on approximately fall-winter. As leverage digits increase which expect end to the With quarter testament we to brands six two innovation. we target we XX% business approximately to in margin the product and month of EBITDA million compared to We a is year, spring-summer a Black

approximately expect incorporates million and production to cash for greater our increase generate solidify approximately new from to still and a products scalability. flow experiences, better We innovate rate, ability $X.X also expenditures, additional $XX launch and consumer to free of and investments operations create at insights systems in after capital which capacity, faster million

announced our flow The $XXX As facility today, JPMorgan earlier additional includes with banks. facility Chase an entered we new and a cash terminated into them. two million with syndication Bank facility ABL with

aid cash capacity, to facility increased us flow strategies. which we provides capital with flexibility allocation our growth and credit maximizing maximize aid and new believe Our and -- will our

that and and our have sound place new balance we to facility structure credit capital strength. adds a strong Additionally, a sheet in

and therefore and maximize continues our these common more of intended to be the purposes. tax Any John, or is would the rights limit number NOLs. ownership a subject risk rules passing of existing income the as value call back agreement change Before to such NOLs to that our over X% of owners for to ownership reminder, under of a a impair of federal our reduce significant possible to the change stock

NOL XX, purposes As federal US concludes my income estimate of tax XXXX, of we approximately forward March we prepared have available for million. This remarks. that carry $XXX

Now, back I'll turn John. to the over call

John Walbrecht

Aaron. Thanks,

for to spring product Now a first that fall discussion our I'd transition results quarter, seasons. strong the the highlighted and like to ‘XX we've for upcoming ‘XX

For share. is trekking believe an categories for on and significant gloves, others. apparel, our we're we runway amongst those grow down footwear, there market packs, both doubling opportunity where These poles, include to growth seasons,

new another products have launch. for continue momentum ‘XX, we XXX for XXX slated plus we over with launch and fall this For for expect slated spring will to ’XX,

Now to ‘XX. turning fall

Black Approach on down offerings our items. strongest already thermal the garnished Down down we warmest our are jacket and and discussed As jacket, trade the new The at significant layer jacket, is Down the is wool which last Boundary lightest Mapped call, recent a new regulation the ‘XX of Line the fall introductions Diamond’s provides the that and have few which Vision attention including shows. awards a and base has apparel Lap active moisture stretch jacket just which management, product

some the of earlier We This our ski heat, the emphasis technical awards continues as powered which skiing from Retailer major the in this supplemental a won year. battery and glove, Outdoor ISPO collection expansion shows of tour today, gloves won Jetforce numerous Black glove liners. new featuring and most Pro, new ultra-light. The the gloves has heated innovative is that Diamond Jetforce have significant as the to packs updates Award. also safety and already Backcountry the deploys snow collection with with of Solano also ISPO the be well Gold the

an the fall has headlamps, built ultra-light trekking latest and Diamond expansive for ’XX. Black packs, poles, Finally, to apparel and offering exceptional innovations

momentum of the in Approach Moving XXXX, in expansion footwear Olympics include the industry. see within introduce to Summer XXXX, use. We're will for to the forward Tokyo, spring excited we the of climb with XXXX into spring our inclusion significant offering climb

this We footwear have our experienced at footwear that of align, momentum. than will this had originally the And expansion, in pace a faster is category performance growth rapid a fuel natural planned. we we which extension much expect

to initially XXXX. for to coming the fall market launch expect the REI test We expect to use then at launch spring this and Approach globally

extremely line at and to We trade up the have shows positive various feedback. have received Approach previewed already

headlamps, digital and trekking climb, marketing packs, We're these category. a harnesses of excited within Supporting in We ZX consumer store focused poles, range the as and carabiner also be line and well products and product our across technologies of the engagement and expanded release as on refresh and expect new a expanded apparel launch apparel. launches new via athletes, anticipated complete accelerating robust protection, well about new presence. as to bottoms lion as new will mountain campaign events, a new sportswear in the broader more

centric to a locations retail of in add We additional the more our elevating certain in also and key expect manner. awareness the consumer brand markets, demand

ammunition further of to forward further dynamic of adjacent in continues Looking Sierra, Sierra, to strength. category, ammunition this turning carries contraction long more ammunition look beyond. anticipate we products extensions and importantly have The in Sierra its tradition another This brand the far rare ammunition space has leveraging avenue bullet and the and drive so market. category. later High accuracy to of the earned, expansion range product loyalty. on Sierra’s broader the follow XXXX brand strong and innovative recent to consumer in to we and is despite is to in market We most forward its and our Sierra's large deservedly strength that the Also brand share a gains. streak with our awareness results quarter, into testament the performing and

headwinds market our expansion, on continued will strong relationships our market we product go our ahead, building which Sierra, at our is consumers, the to enhancing of process driving Looking in control. face in operations. efficiencies international what's and in That's focus with innovation,

team nourishment sales built go market organic, believe and our growth and alternative focus cannabis to at brand portfolio, or targeting capable skin natural process. nourishment’s our and for global other sport commitment product skin marketing a the brand on innovation, existing will while and distribution our have infused opportunities significantly products natural, to enhancing For portfolio, We ingredients. platform grow skin Clarus expect we uniquely strong and the nourishment, we ambassador we’re to all provide given footprint, our using

this early well as XXXX. go the to process. in the from start of we second to strategy integration market the of expect And are our process, brand's generating in We benefits half days as enhancing

future and of reinforce the organic is of that existing opportunistically on of profitability component as terms growth of continues believe a level our it is With increased these M&A, being our returns provide In highest our that primary allocation be strategy to capital brands, invested important focus we on capital. said, main to the acquiring super-fan brands.

approach supported portfolio, to another to opportunities, M&A steady opportunistic tuck-in be pipeline already Our continues our they be facing whether with leg consumer of a our to or activities. existing to

the As cash awareness of that share through as and flow distribution Supporting leading significant the the well market fit consumer continue our ability portfolio we drive constantly brands portfolio. our produced flow under facility share and with our year through brand has improvements profitability acquisitions XXXX new current mentioned. well brands These consumer. current have are outside accessing our and brands to reminder, growth as flexibility increased gains, at and capacity product platforms. credit market super-fan opportunities in to in chain Aaron expected through that brands will to typically with cash core as our core supply and increasing looking strategic make We're a extensive this of with amongst awareness defined our

am execution term encouraged team's I long importantly, how our strength more successful the Before portfolio, of our overall to plan. of getting reiterate strategic to brand our and, with Q&A, like I'd

and awareness quarters to making Our changes that subsequent are the brands aiding results working market several over and the their share. we last are in are the business proof are growing their our

to through offering all consumers. provide on focused driving our intently to our of compelling are product We a categories innovation

will last We so our received core reasons the have the and in are leveraging retail the trade. industry the and new with the Will our This now backbone our in development which for products my each is brand quarters quarter. has at time remain confident drive that, in over consumers I'd evident operator one closing well on product first of allocation within remarks. the to value why capital strengths results focus Cody? over to our turn our for continue was Q&A this been I'm been back to shareholders. of outsized strong our several process, combined the ability which policy to before solid with like to our path,

Operator

come [Operator question Jim from from Stifel. Instructions] And will Duffy our first

Jim Duffy

on in questions disaggregate of the trends I'm down you the two it the the wondering in type that, business of if to whole? as spring spring what you for kind business about Nice think of seasons, for the first quarter. component your you. Couple and quarter. of you do work ski outlook to business break And, can saw what's component the of related business and a

John Walbrecht

quarter and apparel poles, with momentum each headlamps, would posted safety, said always quarter, of was the just growth part sometimes and our trekking on within belief our Obviously, stage And optimistic in first one the with continue even regards as I the we're in every year, finished our and the trend pre-booking to of I so quarter snow think first cases other in the only categories footwear, as rather business. and focus great saw one is, our than geography, we mountain the about the second packs favor, and answer of to over try segment see traditional much. that. ski we one season, not category blow spring and really trends business into And in and we this are second and we're and Aaron into wherever ski I’ll in let each and play it and mountain follow calendar half going. course, channel, answer that. in facts, doesn't your Obviously, of winter And it in momentum But climb, what the don't you season. delivering in call we one if category, try and up how catch. things

the And optimistic were transpire were bookings But about window. were Labor in now lot Day will we how start and shipping a strongly and we when so in. we between coming Fall positive

Jim Duffy

then did that would costs on the is that leverage in SG&A? where you're growth, on SG&A key type and forth it quarter, have finding question I variable do And next in some so the on with guys just of savings? terrific thought maybe Can the sales How areas challenging. dig you make you the would more

Aaron Kuehne

market year one And in has at of reallocation. various and despite day, continue to believe operational substantial on opportunistic our efficiencies. maximizing the operational certain the of then been the so coming of or plan, we investments still But we look a on the Yeah, that focused made on where to go we value -- always within we focuses relook saw of every that's proposition very we process, be to what budget be into side, with brands or terms the increases.

can the to as our invest also in of of ensure provide bit also we leverage saw, us supporting a able of result by didn't a continue being the how we obviously continue disciplined levels but look growth we returns, ways areas cut at approach, so expenses, that but of just activities. that we the were scalability to And in quite and optimize we but to within the believe with prudent highest garner

to that of a also the this so embrace manifestation the values elements in continues a just team great and but approach is business. work sound of great And the that of instilling these these we're strategy

Jim Duffy

you about about out things that of of and let seeing you're really work. as still how I'll a Last XX-XX previously nice me, in. spoken playing jump one the else someone Is the then model? had Great, for think year. Aaron, we split

Aaron Kuehne

Yes, correct. that's still

Operator

Thank you.

King next from is Capital. from Our question ROTH Dave

Dave King

and gross or progresses? did about XX% margin to Aaron, the leverage we first much EBITDA ability year margin the think Maybe the as between on you guidance, should SG&A how EBITDA how the say

Aaron Kuehne

type last same to from supply gross color consistent of made will and be Dave, margin We concerning improvements focused activity and be transitional knew improvements those then on. pretty margin revenue that outlook activities in kept call starting commentary to in XXXX gains more QX into the chain with going came sourcing top guidance. the that along realize did We EBITDA we've margin provide of we that, believe where We able us to of substantial on or didn't get EBITDA we highlighted benefit gross we and additional we last a have where it our some when XXXX, the the that just or of guidance one, some year with little line those activities bit that difficult XXXX. we in transitional do a will that,

XXXX so see XXXX. view improvement more basis you adjusted XX QX more be to in why and margin the And consistent basis. a with And point in of result, as that that's on an of we line

Dave King

it's to like year's or similar sounds you this Okay, so then maybe last to the levels quarter? sort of improvement similar saw it

Aaron Kuehne

Yeah. QX. In

of design, We have focus we product our place that XXXX. a gross now our through few a but the drive as that right cetera, different on initiatives at our where But chain holistically at cetera, will we that And through of supply maximize this with until is end well. optimize we play to the to have QX won’t say, repricing, is Diamond Black of play believed et the see the margin major some taking improvements. position, sourcing also goods and we back where we a benefits I progressing continue really And initiative look hard activities. to have et

Dave King

you and perfect. begun yet and and for start highlight breakdown then can the fronts you on own you those when turning should to between green Okay, Sierra, have see the quarter, your we or to stores? it Then things ammunition OEM do have shipping box in any

John Walbrecht

specific from XX-XX stay a improvement. into away getting know continued and just see between down green the box did breakouts split. we it's holistically We Yeah, so that OEM

initiatives into One focusing side. on was coming the our XXXX also international of

we one the we that XXXX. process, to we market business, the opportunities go on benefits the coming knew before, bought as and As of was we the which into discussed focused that we've of saw domestically,

did We start ship also of results. ammo international the to or answer benefit and the coming into more we insignificant, there question And saw some on our side, overall of the albeit placed leaned from partners to well. our more yes, ammunition, emphasis we quite to as your

of the occur to shipments will late early most You'll QX, start see QX.

Dave King

early Late QX. QX,

Okay.

did started X, when a you’ve ship as little saw quarter first when that So saying, is you say of you the bit in little mean May to or you're bit? you you a did,

John Walbrecht

little bit. In the ship a quarter, we first did

Operator

Kawamoto Michael from is from question next Our Davidson. DA

Michael Kawamoto

Yeah. for good and guys, thanks on the Hey, taking congrats my start. question

John Walbrecht

Appreciate Michael. it. Thanks,

Michael Kawamoto

case. the as was the on ammo that hearing the is still in industry curious outlook from of and year that is of noted you're play retailers your market the the low just in that you digits, that their a in better so down, think category. whole, I industry domestically double what you And rest than I'd partners Yeah, the part for imagine shape the

John Walbrecht

the would just I political I it marketplace rock the marketing, season, the that lift. innovations, and already was of to would think hit start flat new and hunt when hope of perception a a [indiscernible] we the we’d QX QX, QX, and or we'd product see was momentum, say bottom whether that QX, see by buzz, a everyone the that

numbers -- we’ll we hoping the do fall, as digits to continue is as was innovative as now that move back. we posting starts think believe and to where to keeping would QX, both And, other double flat, to down. by I maybe quarter from be some the OEM late I into putting out very industry our as maybe ammunition expected that we and I new constantly and consumers. it think, posted than And difference product the continue now in that with offerings to manufacturers digits the our double the weapons the and/or positive mid be well QX, year, point in in some in partners decline. the say, of you're that seeing by gas low a ranged is us, teens softer of the on innovation probably

in now. that's think best the the marketplace case I right scenario

belief through to it's our and share, the create and the been OEM about through Our that partners, market of desired our at work you'll marketplace. consumer is both always end the products day, it's that consumers

Michael Kawamoto

maybe green And the Got initiatives point side or examination working then on just on on that? your some can share it. about you helpful. innovation, That's bullets or like anything

John Walbrecht

precision is Changer, I are launched we technologies into things then is regular our ammunition, with opportunities I obviously, then And and continue for bullet on offering. to Sierra two innovative think the will the which with there expand from ammunition tandem basis our to an launch to Game we're from we're OEM and new the opportunities continuing as in can offers we've And a side for working where additional other that, marketplace. partners to that accuracy. look think unique where we what perspective, a determine OEM

the that's we're developing of very into XXXX. and so with pleased how rest pleasantly going XXXX And

Operator

[Operator is And Lake Instructions] Chris from our next Krueger Street. question from

Unidentified Analyst

Hey, this is a Mark of on here. just ones for quick Chris. couple Hey,

snow season? out inventory from the Just, the insight can weather you came as quality maybe winter give us and touch conditions of on the impact of any and more into you

John Walbrecht

Okay, I think to inventory careful we're with. about begin always

of winter. it a the was think I good winner. up don't to it I leave all

in Our we team developed in some award likewise saw that, products, and very and beacons innovative safety as winning packs both categories. ski other as and in well growth snow in gloves

for is think probably I -- the And think market fall in seen clean. the ‘XX. was winner has market the think is the industry because I good, I that bookings

was US globally, goes the decent it It in globe winter. a the enough to Europe sometimes the wasn't and Asia, And but help retailers. phenomenal, around it And we in way. had your

Unidentified Analyst

kind following questions. Sierra up just Okay. other of And on from then here some

another need at, do and we cycle, to that much meet to how into early increased cycle, you demand election look lead we higher demand? really time As if we're into were see into build presidential coming

John Walbrecht

would think to with glimpse you is I of as we partners staying the close this type expected and get OEM think trend, it our can. as because we're we and retail a a partners, we I that early as say

as we we well in opportunities whether that efficiency, production and our planning both at for we growing. market goal possibility, down, that can our get make to the flat or is Sierra everything Our as is maximize sure doing the that are innovative products

Operator

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

John Walbrecht

operator. everybody to We'd thank like listening you, for Thank to call. today's

believe brands product We're for nourishment. Sierra to and previously, report we to teams said the results. product and we've a the moving for forward now you. excited with innovations, you skin build and year BD second quarter we the As huge great speaking Thank for innovation, team to again we the look our team into kudos the when great

Operator

this and today's teleconference. gentlemen, Ladies conclude

at disconnect for may You lines time. your this participation. you Thank your

Clarus (CLAR) 6 May 192019 Q1 Earnings call transcript