Clarus Corporation

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Claris Corporation's financial results for the second quarter ended June 30, 2024. Joining us today are Claris Corporation's Executive Chairman, Warren Kanders, CFO Mike Yates, President of Black Diamond Equipment, Neil Fisk, Management Director of Claris Adventure Segment, Matthew Hayward, and the company's External Director of Investor Relations, Matt Berkowitz. Following the remarks, we'll open the call for questions. Please note this call is being recorded. Before we go further, I would like to turn the call over to Mr. Berkowitz as he reads the Company Safe Harbor Statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Matt, please go ahead.

Thank you. Before I begin, I'd like to remind everyone that during today's call, we will be making several forward-looking statements, and we make these statements under the safe harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements reflect our best estimates and assumptions based on our understanding of information known to us today. These forward-looking statements are subject to potential risks and uncertainties that could cause the actual results of operations in the financial condition of Claris Corporation to differ materially from those expressed or implied by the forward-looking statements. More information on potential factors that could affect the company's operating and financial results is included from time to time in the company's public reports filed with the SEC. I'd like to remind everyone this call will be available for replay starting at 7 p.m. Eastern time tonight. A webcast replay will also be available via the link provided in today's press release, as well as on the company's website at clariscorp.com. Now I'd like to turn the call over to Claris' Executive Chairman, Warren Kanders.

Thank you, Matt. Good afternoon, and thank you for joining CLARIS's earnings call to review our results for the second quarter. I am joined today by our Chief Financial Officer, Mike Yates, as well as Neil Fisk and Matt Hayward, who will discuss our outdoor and adventure segments, respectively. Before I turn the call over, I'd like to highlight the incremental progress we have made thus far in 2024, executing CLARIS's strategic initiatives to seek to create long-term value. While overall macroeconomic conditions have remained challenging with consumer demand broadly constrained, we are confident that we have laid the foundation for expected sustainable growth moving forward. It is worth reiterating that we remain in the early stages of our multi-year strategic plan, but believe the investments we have made to date will deliver significant long-term benefit. While Neil and Matt will provide more specific comments, we continue to take positive steps forward in each segment during the quarter. At Outdoor, in the face of strong market headwinds, the team continued to execute initiatives focused on simplification and right-sizing of the inventory. Importantly, inventory levels were down 17 percent year-over-year And we've improved the quality and composition of the inventory to focus on our A styles across categories, which Neil will discuss in greater detail. From an operational standpoint, we identified several opportunities that may drive efficiencies in the business. And we've been pleased with our progress, both reducing operating costs and solidifying the core. In the adventure segment, while Q2 results reflected market softness, particularly in the United States, we continue to see positive trends during the first half of the year within the broader segment, primarily in Australia. As we have detailed previously, we believe there are significant growth opportunities outside of the home market, and we continue to invest proactively to capitalize on the strong long-term industry dynamics and large and growing addressable market across our verticals. Matt will discuss the team's broader corporate realignment and recent appointments, which we believe will bring a focus to the U.S. and international markets and strengthen our global OEM initiatives. We believe we now have the right team and strategic roadmap in place to build out a best-in-class product ecosystem while maintaining a commitment to enhance product margins as we scale. As we look towards the future, we recognize there is still much more work to be done, but are pleased with the incremental improvements we have seen across the business and believe that the previously stated long-term profitability objectives are achievable. With that, thank you for being with us today, and I will turn the call over to Mike.