Compass Diversified, owner of Velocity Outdoor, BOA, Marucci, Primaloft, 5.11, and other businesses in the active lifestyle space, reported that net sales in the second quarter were $524.2 million, up 2 percent compared to $515.6 million in the second quarter of 2022.
The increase was said to be primarily due to the acquisition of PrimaLoft, the strong performance at Lugano and Marucci, partially offset by lower sales at BOA due to inventory de-stocking in the footwear industry and lower sales at Velocity in the second quarter of 2023.
On a pro forma basis, assuming CODI had acquired PrimaLoft on January 1, 2022, net sales were down 3 percent in the second quarter of 2023 as compared to the prior-year period.
Branded consumer net sales, pro forma for the PrimaLoft acquisition, decreased 1 percent in the second quarter to $348.5 million compared to the year-ago quarter. On April 4, 2023, Marucci Sports, a subsidiary of CODI and a designer and manufacturer of baseball and fastpitch equipment and apparel, announced the acquisition of Baum Enterprises LLC, a designer and manufacturer of composite wood bats.
Adjusted Earnings for the second quarter was $35.6 million compared to $39.3 million a year ago.
Adjusted EBITDA in the second quarter was $90.1 million, up 3 percent compared to $87.4 million in the second quarter of 2022. The increase was said to be primarily due to the acquisition of PrimaLoft. The company no longer adds back management fees in its calculation of Adjusted EBITDA. Management fees incurred during the second quarter of 2023 were $16.9 million.
For full details on the Compass Diversified’s second quarter and details by brand, including executive commentary from the analyst conference call, go here:
EXEC: Retail Inventory Woes Impact Q2 Sales at BOA and Primaloft; Marucci and 5.11 See Gains
Photo courtesy Primaloft
