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 30th, 2026. Joining us today are Claris Corporation's Executive Chairman, Warren Kanders, CFO, Mike Yates, President of Black Diamond Equipment, Neal Fiske, and the company's External Director of Investor Relations, Matt Berkowitz. Following the remarks, we'll open the call for your questions. Before we go further, I would like to turn the call over to Mr. Berkowitz 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. Matt, please go ahead.

Thank you. Before we begin, I'd like to remind everyone that during today's call, we will be making several forward-looking statements, and we will 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 or 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 Clarice's executive chairman, Warren Kanders.

Good afternoon, and thank you for joining Clarice's earnings call to review our results for the second quarter. I am joined today by our CFO, Mike Yates, who will provide a financial update, including adventure segment performance, as well as Neal Fiske who will discuss our outdoor segment. Overall, our second quarter performance reflected continued operational execution and simplification. Michael discussed the IEPA tariff refund which we recognized during the quarter which lifted earnings and gross margin. Excluding that benefit, our underlying results across both outdoor and adventure were solid and reflect progress across our overall earnings profile. At outdoor, second quarter revenue, margin, and EBITDA all increased year over year, evidence of the team's hard work concentrating inventory on our highest volume, highest margin products. Our big three outdoor categories of mountain climb and apparel drove 95% of total segment revenues. Apparel is a key pillar of our long-term strategy. Our product continues to resonate with the consumer as we delivered apparel sales growth for the fifth consecutive quarter. With cleaner inventory, less discounting, and a shift toward a full price model, we are well positioned to drive improved profitability at outdoor. At Adventure, We have improved the organizational shape to capture more margin as the business rescales. While second quarter sales did not meet our expectations, ongoing pricing actions and cross controls have paid off. Second quarter gross margin improved 420 basis points year over year. We continue to balance rigorous cost discipline with targeted investments. During the second quarter, we completed the bolt-on acquisition of certain assets and liabilities of Onward Supply Company, enhancing our portfolio mix with complimentary high-margin in-vehicle accessories. I would also like to highlight that we executed share repurchases during the second quarter under our $50 million buyback program. We bought back 153,331 shares for approximately $400,000 or 2.292 per share. We believe these repurchases represented an attractive use of capital. We maintain approximately 42.4 million under our program and will continue to assess buyback opportunities while preserving financial strength and flexibility to make strategic investments. Turning to guidance. despite continued geopolitical and macro uncertainty across the global outdoor market, we still expect CLARIS' full-year revenue to fall within our previously provided guidance range. Including the IEPA refund and certain other factors, Mike will detail shortly, we now expect 2026 adjusted EBITDA to range between $12 billion and $13 million. Before passing it over to Neal, I will briefly touch on the review of strategic alternatives we announced in May. We continue to explore a range of potential actions aimed at unlocking value more effectively than the market is currently recognizing today. We have retained Jeffries as our financial advisor to assist in this process. Potential alternatives could include the sale of all or part of the business or other strategic or financial transactions involving the company. Please note that we will not be answering any questions or commenting further on our strategic review process until additional disclosure is appropriate or required. With that, thank you for being with us today, and I will turn the call over to Neal Fiske.