CamelBak's net sales declined 4.8 percent to approximately $36.9 million in the three months ended March 31,  compared to the same period in 2014, according to parent company Compass Diversified Holdings, Inc. 

Compass Diversified reported a decline in sales of Hydration systems ($2.6 million) was only partially offset by higher gross sales of Bottles ($0.8 million), and Accessories ($0.4 million). The increase in Bottle sales was attributed primarily to an increase in international and domestic bottle sales including Eddy , the Podium line of insulated bottles, and the Chute ergonomic high-flow water bottle.

The decrease in sales of Hydration systems was due to the timing of shipments for certain pack models, reduced military demand due to troop downsizing and reduced inventory available for sale due to the West Coast port congestion in the United States.

Sales of Hydration systems and Bottles represented approximately 86 percent of gross sales during the period compared to 87 percent for the same period in 2014. Military sales were approximately 19 percent of gross sales compared to 20 percent for the same period in 2014. International sales were approximately 26 percent.

Cost of sales
Cost of sales was approximately $21.7 million compared to approximately $21.9 million in the same period of 2014. Gross margins decreased to 41.3 percent for the quarter ended March 31, from 43.6 percent, due principally to the strengthening of the U.S. dollar versus the euro and the British pound, as well as increased freight costs due to expediting shipments via air freight to mitigate the impact of the West Coast port congestion.

Selling, general and administrative expense

Selling, general and administrative expense decreased to approximately $8.6 million, or 23.2 percent of net sales compared to $8.7 million, or 22.6 percent of net sales for the same period of 2014. This decrease was primarily attributable to the reduction in sales for the 2015 quarter as compared to the same period in 2014.

Income from operations

Income from operations was approximately $4.4 million, down $1.5 million when compared to the same period in 2014.