Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 40

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 40
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 archery product category consists of products including Ravin crossbows and CenterPoint archery products, and the apparel category offers high-performance, feature rich hunting and casual apparel under the King's Camo brand, utilizing King’s own proprietary camo patterns. Velocity Outdoor offers its products through national retail chains and dealer and distributor networks. Velocity Outdoor is headquartered in Rochester, New York. On April 30, 2024, Velocity Outdoor sold the Crosman airgun product division. The results of operation for Crosman are included in the accompanying financial statements through the date of sale.

94

Results of Operations

Year ended December 31,(in thousands)202420232022Net sales$96,427 100.0 %$172,190 100.0 %$232,238 100.0 %Gross profit $26,353 27.3 %$45,161 26.2 %$62,686 27.0 %Selling, general and administrative expense $25,473 26.4 %$36,316 21.1 %$33,867 14.6 %Impairment expense$8,182 8.5 %$31,590 18.3 %$— — %Segment operating income (loss)$(14,157)(14.7)%$(32,828)(19.1)%$18,961 8.2 %

Year ended December 31, 2024 compared to the Year ended December 31, 2023

Net sales

Net sales for the year ended December 31, 2024 were $96.4 million compared to net sales of $172.2 million for the year ended December 31, 2023, a decrease of $75.8 million or 44.0%. The decrease in net sales during the year ended December 31, 2024 is driven by the divestiture of Crosman, which was sold on April 30, 2024. The remaining product categories, which consist of the archery and hunting apparel product categories decreased approximately $3.5 million compared to the same period in 2023 due to softness in the overall Hunting and Fishing market as well as retailers reducing levels of inventory on hand.

Gross profit

Gross profit as a percentage of net sales was 27.3% for the year ended December 31, 2024 as compared to 26.2% in the