Black Diamond not only improved Q1 sales, but also minimised its losses, compared to the same period last year.

Good growth in Black Diamond’s climb, mountain and ski categories helped the company increase sales 9% to $41.6-m for the first quarter. Sales also improved in every channel and geographic region and the company’s results was hardly impacted by foreign exchange.

Its gross margin also increased 90 basis points to 29.6% (28.7% in Q1 2016) as a result of a favourable mix of higher margin products and retail channels.

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Backpack sales contribute to growth in Black Diamond’s climbing category.

The company’s restructuring plan, which was implemented in 2015 to help realign its resources, is still having a positive impact and resulted in a 12% drop in selling, general and administrative expenses to $12.5-m. It also cut its net losses to $1.5-m compared to $4-m last year.

“Our first quarter was the first clear sign that the steps we have taken to better serve our core customers are creating momentum, all while continuing to drive innovation in current and adjacent product categories,” says John Walbrecht, president of Black Diamond Equipment. “We grew in all of our primary product categories and across all major markets, which was a key goal and a significant accomplishment in the current environment.”

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Headlamp sales helped improve sales in Black Diamond’s mountain category.

Black Diamond expects more positive results going forward in this financial year. It foresees that sales will increase about 3%-7% (to between $153-m and $158-m), or 4%-7% (to between $154-m and $159-m) on a constant currency basis.

It believes its gross margin will increase approximately 300-400 basis points to range between 32.5%-33.5%, while selling, general and administrative costs will amount to approximately $50.5-m compared to $49.9-m the previous year.

Black Diamond is locally distributed by Ram Mountaineering.