Black Diamond Changes Strategy To Return To Core Business

Black Diamond plans to sell some brands in November, and intends to find buyers to sell all brands? Perhaps the company has changed its strategy to return to its core business.

Prior to this, Black Diamond Inc. investors reached a consensus that Black Diamond Equipment (including PIEPS) and POC were sold separately in two pactions, but Metcalf's latest comments indicate that the listed company may seize one part and sell another one.

In August 10th, this family held

Inc., Black Diamond equipment, PIEPS, Poc Sports and other 3 brand companies released 2015 second quarter earnings report, sales revenue increased significantly, but the net loss has expanded.

CEO Peter Metcalf suggested in a conference call that the company's previously announced strategy of exploring all-round development strategy for its brand will change, possibly selling "part of the company's assets".

"I am not sure that it will be a full takeover," investors Mark Kusnir said to the media. "It is very likely that they just sell the POC brand.

At present, it is the fastest growing brand of this company, but I think its riding product is not a good complement to the traditional climbing image of BD. "

If so, Black Diamond Inc. will more or less return to the beginning of five years ago, even if it withdrew from the clothing product line, it would only focus on climbing and snow sports.

In 2014, the company sold its backpacker brand Gregory to Samsonite.

In this conference call,

Talked about the changes made by Black Diamond to the core of the business: re launched the ski suit series, taking snow and snow safety as the core. In addition, the production and equipment of all climbing equipment products lines in 2016 should be moved back to Yancheng lake.

All of this shows that when you say that you intend to sell, there are still many variables (for example, "this brand is so valuable that we may not sell it").

Just as Black Diamond doubled its efforts to promote its brand, its losses in the 2015 quarter still expanded to $5 million 400 thousand, while the net loss for the whole year was only $5 million. Although Gregory has already sold, sales also increased by 700 thousand US dollars over the previous year's 34 million 400 thousand US dollars.