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Clarus Corporation (CLAR)
NASDAQ:CLAR
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Clarus (CLAR) AI Stock Analysis

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CLAR

Clarus

(NASDAQ:CLAR)

Rating:45Neutral
Price Target:
$3.00
▼(-4.15% Downside)
Clarus' overall stock score is primarily affected by ongoing financial and operational challenges. While there are some strategic improvements and a solid equity base, the bearish market signals and negative earnings outlook weigh heavily on the score.
Positive Factors
Product Mix
Some positive takeaways include modest year-over-year growth in outdoor (1%) despite the tough macro environment and a favorable product mix in the quarter.
Quarterly Performance
Clarus reported Q4 revenue that was higher than expected.
Segment Performance
Most of the upside came from the Adventurer segment with sales of $20.3M above the $17.3M estimate.
Negative Factors
Guidance
Management gave initial FY25 guidance with revenue guided to a range of $250-$260M versus the prior estimate of $285M.
Investigations
The ongoing DOJ and CPSC investigations present potential downside risk, both financial and reputational.
Market Conditions
The operating market remains difficult with squeezed consumer spending.

Clarus (CLAR) vs. SPDR S&P 500 ETF (SPY)

Clarus Business Overview & Revenue Model

Company DescriptionClarus Corporation develops, manufactures, and distributes outdoor equipment and lifestyle products focusing on the outdoor and consumer markets in the United States, Canada, Europe, the Middle East, Asia, Australia, New Zealand, Africa, and South America. Its Outdoor segment offers activity-based apparel, such as shells, insulation, midlayers, pants, and logowear; rock-climbing footwear and equipment, including carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gears; technical backpacks and day packs; trekking poles; headlamps and lanterns; gloves and mittens; skincare and other products; and skis, ski poles, ski skins, and snow safety products, such as avalanche airbag systems, avalanche transceivers, shovels, and probes. This segment offers its products for climbing, mountaineering, trail running, backpacking, skiing, and other outdoor recreation activities under the Black Diamond Equipment, PIEPS, and SKINourishment brands. The company's Precision Sport segment manufactures bullets and ammunition products for precision target shooting, hunting, and military and law enforcement purposes under the Sierra and Barnes brands. The company sells its products to mountain, rock, ice, and gym climbers; and winter outdoor enthusiasts, trail runners, backpackers, competitive shooters, hunters, and outdoor consumers. Its Adventure segment offers engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, and accessories under the Rhino-Rack brand; and overlanding and off-road vehicle recovery and extraction tracks for the overland and the off-road market under the MAXTRAX brand. It markets and distributes its products through independent specialty stores and specialty chains, sporting goods and outdoor recreation stores, distributors, and original equipment manufacturers; and independent distributors, as well as through its websites. The company was incorporated in 1991 and is headquartered in Salt Lake City, Utah.
How the Company Makes MoneyClarus Corporation makes money by designing, manufacturing, and selling a diverse range of outdoor and lifestyle products through its various brands. The company's revenue streams include direct sales through retail and e-commerce channels and wholesale distribution to specialty retailers and third-party distributors. Key revenue contributors are its flagship brands like Black Diamond, which caters to outdoor enthusiasts with gear for activities like climbing and skiing, and Sierra Bullets, which provides precision ammunition. Partnerships with retailers and distributors enhance market reach, while strategic acquisitions expand product offerings and consumer base, driving overall earnings.

Clarus Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: -13.06%|
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with solid wholesale performances and strategic divestitures contributing positively, while challenges in direct-to-consumer sales, tariff impacts, and a decline in the Adventure segment posed significant headwinds. Adjusted EBITDA improvements were offset by negative EBITDA and inventory management issues.
Q2-2025 Updates
Positive Updates
Solid Performance in European and North American Wholesale
Clarus Corporation reported solid performances in both European and North American wholesale at Outdoor, reflecting an increase in net sales to $55.2 million, slightly up from the same period last year.
Successful Sale of PIEPS Snow Safety Brand
The company completed the sale of its PIEPS snow safety brand for $9.1 million, aligning with Clarus' simplification strategy and strengthening its balance sheet.
Improved Inventory Composition
Clarus enhanced its inventory composition with less exposure to discounted merchandise and a higher concentration in profitable A styles, positioning Black Diamond for growth in its full-price business.
Increase in Global Wholesale and Direct-to-Consumer Businesses
The Adventure segment saw an approximate 8% increase in global wholesale and direct-to-consumer businesses, partially driven by bike rack sales.
Positive Adjusted EBITDA for Black Diamond
Adjusted EBITDA for Black Diamond in Q2 was $303,000, showing improvement compared to a small loss in the same period last year.
Negative Updates
Softened Direct-to-Consumer Performance
The Outdoor segment's direct-to-consumer performance and site traffic softened, with a 20.1% decline in North America digital direct-to-consumer sales.
Decline in Adventure Segment Sales
Sales in the Adventure segment declined by 8% due to reduced demand from a global OEM customer and a challenging wholesale market in Australia.
Impact of Tariffs and Currency Fluctuations
Expected tariffs and currency fluctuations are projected to have a $3.4 million impact on earnings for the year despite mitigation efforts.
Negative Adjusted EBITDA
The company reported a negative adjusted EBITDA of $2.1 million for the second quarter, indicating ongoing financial challenges.
Inventory and Free Cash Flow Challenges
Free cash flow was a use of $11.3 million due to poor working capital performance, primarily in inventory and accounts receivable.
Company Guidance
During the second quarter of 2025, Clarus Corporation reported net sales of $55.2 million, reflecting a slight increase over the same period last year. The Outdoor segment experienced growth with revenue at $36.5 million, up 2.1% year-over-year, while the Adventure segment saw an 8% decline. Adjusted EBITDA for the quarter was a loss of $2.1 million. Gross margins were mixed, with the Outdoor segment showing an adjusted gross margin of 36.1% and Adventure at 37.3%. Tariff impacts are projected to have a $3.9 million headwind on earnings for 2025, partially mitigated by price increases and streamlined operations. The company completed the sale of its PIEPS snow safety brand for $9.1 million, contributing to its simplification strategy and improving its balance sheet. Clarus remains cautious about the macroeconomic environment and consumer sentiment but is focusing on inventory management and reducing overhead to drive long-term growth.

Clarus Financial Statement Overview

Summary
Clarus is facing financial difficulties with declining revenue, negative profitability, and cash flow issues. However, a strong equity base and low leverage offer some stability.
Income Statement
40
Negative
Clarus has faced significant challenges, as indicated by the declining revenue with a noticeable drop from $315.3M in 2022 to $254.2M in TTM (Trailing-Twelve-Months). Gross profit margin has been decreasing, and net profit margins have turned negative, reflecting ongoing operational difficulties. The TTM shows a negative EBIT and EBITDA margin, further highlighting profitability issues.
Balance Sheet
55
Neutral
The balance sheet shows moderate stability with a low debt-to-equity ratio due to reduced debt levels. However, a decreasing equity ratio and a declining return on equity indicate financial strain. The company maintains substantial stockholders' equity, providing some buffer against liabilities.
Cash Flow
50
Neutral
Clarus experiences negative operating and free cash flows in the TTM, suggesting cash generation issues. The free cash flow has declined significantly, posing potential liquidity risks. However, the company's cash flow management has previously shown resilience with positive free cash flow in 2023.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue254.70M264.31M286.02M315.25M265.97M224.01M
Gross Profit85.25M92.62M97.51M110.22M136.93M77.80M
EBITDA-11.40M-9.35M1.49M12.09M13.03M14.62M
Net Income-82.36M-52.29M-10.15M-69.78M26.09M5.54M
Balance Sheet
Total Assets286.51M294.09M495.34M518.14M631.83M280.69M
Cash, Cash Equivalents and Short-Term Investments28.47M45.36M11.32M12.06M19.46M17.79M
Total Debt15.89M16.65M136.00M139.03M141.53M34.62M
Total Liabilities61.39M61.00M203.22M226.04M261.66M76.10M
Stockholders Equity225.12M233.09M292.12M292.11M370.17M204.59M
Cash Flow
Free Cash Flow-9.33M-14.04M25.96M6.36M-17.69M23.98M
Operating Cash Flow-3.27M-7.30M31.92M14.61M-304.00K29.39M
Investing Cash Flow-9.99M165.16M-11.42M-7.75M-178.14M-35.58M
Financing Cash Flow-3.60M-123.24M-20.25M-13.86M180.68M22.25M

Clarus Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.13
Price Trends
50DMA
3.52
Negative
100DMA
3.49
Negative
200DMA
3.99
Negative
Market Momentum
MACD
-0.09
Positive
RSI
33.12
Neutral
STOCH
13.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLAR, the sentiment is Negative. The current price of 3.13 is below the 20-day moving average (MA) of 3.58, below the 50-day MA of 3.52, and below the 200-day MA of 3.99, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 33.12 is Neutral, neither overbought nor oversold. The STOCH value of 13.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLAR.

Clarus Risk Analysis

Clarus disclosed 47 risk factors in its most recent earnings report. Clarus reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Clarus Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$388.33M-8.33%3.57%-3.56%-407.47%
63
Neutral
$168.27M13.347.66%4.93%-6.65%8.79%
61
Neutral
$16.55B10.17-9.03%3.33%1.46%-22.85%
59
Neutral
$122.35M-0.04%10.55%99.28%
46
Neutral
$197.77M-9.24%-3.30%85.53%
45
Neutral
$124.04M33.59-33.87%3.19%10.53%-1318.01%
41
Neutral
$103.12M-6.23%46.16%2.75%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CLAR
Clarus
3.13
-1.22
-28.05%
ESCA
Escalade
12.17
-0.23
-1.85%
JOUT
Johnson Outdoors
36.94
2.28
6.58%
FNKO
Funko
3.66
-4.98
-57.64%
DOGZ
Dogness (International)
7.73
-5.68
-42.36%
AOUT
American Outdoor Brands
9.47
0.65
7.37%

Clarus Corporate Events

Executive/Board ChangesShareholder Meetings
Clarus Approves Stock Incentive Plan Changes
Neutral
Jun 2, 2025

On May 29, 2025, Clarus Corporation held its Annual Meeting of Stockholders, where significant decisions were made regarding the company’s governance and stock incentive plans. The meeting saw the approval of the Amended and Restated 2015 Stock Incentive Plan, which introduced changes such as reducing the number of shares available for issuance and removing certain provisions to align with current best practices. Additionally, the election of five director nominees was confirmed, and Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the year ending December 31, 2025. Furthermore, the company approved Executive Chairman Warren B. Kanders’ request to increase his beneficial ownership to up to 32.9% of the company’s outstanding shares, subject to certain conditions.

The most recent analyst rating on (CLAR) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Clarus stock, see the CLAR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 03, 2025