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Clarus Corporation (CLAR)
NASDAQ:CLAR
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Clarus
(NASDAQ:CLAR)
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Rating:45Neutral
Price Target:
$3.00
▼(-17.36% Downside)
Clarus Corporation's overall stock score is primarily impacted by its financial performance, which shows significant challenges in profitability and cash flow management. Technical analysis indicates weak momentum, and valuation metrics are concerning with a negative P/E ratio. While the earnings call provided some positive insights, macroeconomic challenges and operational inefficiencies continue to weigh heavily on the company's outlook.
Positive Factors
Revenue Growth
The revenue growth indicates a positive trend in market demand and successful product offerings, particularly in the Outdoor segment, which supports long-term business expansion.
Black Diamond Apparel Success
Strong sales growth in the Black Diamond apparel line suggests effective brand positioning and product innovation, enhancing competitive advantage and market share.
Cost Reduction Initiatives
Cost reduction efforts improve operational efficiency, potentially leading to better profitability and financial health, supporting sustainable growth.
Negative Factors
Tariff and FX Impacts
Tariff and FX impacts create cost pressures that can erode margins and profitability, posing a challenge to maintaining competitive pricing and financial stability.
Adventure Segment Margin Erosion
Margin erosion in the Adventure segment indicates pricing pressure and cost challenges, which can impact overall profitability and require strategic adjustments.
Challenges in D2C Channels
Declines in direct-to-consumer sales suggest challenges in digital strategy and consumer engagement, potentially affecting revenue growth and brand loyalty.
Clarus (CLAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$138.63M
Dividend Yield2.93%
Average Volume (3M)141.12K
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth30.34%
EPS Growth-1749.06%
CountryUS
Employees470
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)-0.04
Shares Outstanding38,401,825
10 Day Avg. Volume185,971
30 Day Avg. Volume141,122
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.74
Price to Sales (P/S)0.65
P/FCF Ratio-12.31
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit1.36
Enterprise Value/Ebitda-11.34
Forecast
1Y Price Target
$4.50Price Target Upside23.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue through the sale of its outdoor gear and equipment across various channels, including retail, e-commerce, and international distribution. The company has multiple key revenue streams, including direct sales of climbing gear, skiing equipment, and apparel, as well as partnerships with retailers and distributors that expand its market reach. Additionally, Clarus benefits from brand loyalty and a strong reputation in the outdoor community, which contributes to consistent sales growth. Seasonal peaks during winter and summer sports also significantly influence its earnings, along with ongoing investments in product innovation and marketing efforts.
Clarus Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 09, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with notable achievements in financial improvement, particularly in the Outdoor segment and cost reduction initiatives. However, significant challenges remain, particularly around tariffs, FX impacts, and margin pressures in the Adventure segment. While there are positive signs of growth and operational improvements, the macroeconomic environment continues to pose significant challenges.Q3-2025 Updates
Positive Updates
Incremental Financial Improvement
Clarus Corporation reported net sales of $69.3 million, a 3% increase over the same period last year, and a quarterly adjusted EBITDA increase of 15%. This growth was driven by strong outdoor demand in North American wholesale and success with new adventure customers in Australia.
Black Diamond Apparel Success
The revamped Black Diamond apparel line saw sales growth of 29%, with in-line sales up 40.5% and discontinued merchandise down 24%. Apparel represented 23% of the mix in Q3, up 490 basis points from a year ago.
Cost Reduction Initiatives
Operational progress in reducing SG&A expenses led to a decrease of $600,000 year-over-year. On an annualized basis, Clarus removed $1.1 million of fixed costs through reorganization efforts.
Adventure Segment Growth
The Adventure segment delivered 15.9% year-over-year growth versus the third quarter of last year, with organic growth at 7.4%. A strong pipeline filled with a new Rhino-Rack customer in Australia drove much of the growth.
Negative Updates
Tariff and FX Impacts
Outdoor and Adventure margins and cash flows were pressured by increased tariff costs and significant losses on FX contracts in 2025, amounting to a $600,000 EBITDA impact in Q3.
Adventure Segment Margin Erosion
Adventure's gross margin was significantly impacted, decreasing from 40.1% in the prior year to 33.2% in 2025 Q3. This was due to additional tariffs, inventory clearouts, and cost of freight to customers.
Challenges in D2C Channels
North America digital D2C was down 16.5%, and Europe digital D2C was down 16% in dollars. The pullback on pro sales and discounting resulted in decreased sales, although margins improved.
Macro and Consumer Headwinds
Despite some progress, macro trade and consumer headwinds, along with a challenging macro environment, continue to cause uncertainty and disruption, impacting near-term financial results.
Company Guidance
In the third quarter of 2025, Clarus Corporation reported net sales of $69.3 million, marking a 3% increase from the same period last year, alongside a 15% rise in quarterly adjusted EBITDA. The Outdoor segment demonstrated particularly strong performance, driven by a 29% growth in the revamped Black Diamond apparel line, with apparel sales contributing 23% to the mix, up 490 basis points from the previous year. Full-price product sales saw an increase, while sales from discontinued merchandise declined significantly. In terms of inventory, approximately 70% is now composed of the highest margin A styles. However, the company faced challenges with tariffs and currency impacts, with tariffs expected to have an unrecovered EBITDA impact of $3.2 million in 2025, and FX contract losses amounting to a $600,000 EBITDA impact in Q3. Additionally, SG&A expenses were reduced by $600,000 year-over-year, thanks to reorganization efforts. Looking forward, Clarus remains cautious about consumer sentiment and macroeconomic conditions but continues to focus on enhancing margins and ensuring sustainable growth.Clarus Financial Statement Overview
Summary
Clarus faces significant financial challenges, with declining revenues and persistent profitability issues. While the balance sheet shows some improvement in leverage, negative cash flows and profitability metrics highlight the need for strategic adjustments.Income Statement
Clarus has experienced significant volatility in its revenue growth, with a notable decline in recent years. The gross profit margin has been relatively stable, but the company has struggled with negative net profit margins, indicating ongoing profitability challenges. The EBIT and EBITDA margins have also been negative, reflecting operational inefficiencies.Balance Sheet
The company's debt-to-equity ratio has improved, indicating a reduction in leverage, which is a positive sign. However, the return on equity remains negative, highlighting ongoing profitability issues. The equity ratio suggests a stable capital structure, but the company needs to address its profitability to enhance shareholder value.Cash Flow
Clarus has faced challenges in generating positive operating and free cash flows, with recent periods showing negative figures. The free cash flow to net income ratio is high, indicating that cash flow generation is not aligned with reported earnings. The company needs to improve its cash flow management to support operations and growth.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 256.43M | 264.31M | 286.02M | 315.25M | 265.97M | 224.01M |
| Gross Profit | 88.70M | 92.62M | 97.51M | 109.95M | 87.87M | 77.80M |
| EBITDA | -10.64M | -9.35M | 1.49M | 12.09M | 13.03M | 13.72M |
| Net Income | -80.82M | -52.29M | -10.15M | -69.78M | 26.09M | 5.54M |
Balance Sheet | ||||||
| Total Assets | 283.07M | 294.09M | 495.34M | 518.14M | 631.83M | 280.69M |
| Cash, Cash Equivalents and Short-Term Investments | 29.51M | 45.36M | 11.32M | 11.98M | 19.46M | 17.79M |
| Total Debt | 14.99M | 16.65M | 136.00M | 154.65M | 159.47M | 40.01M |
| Total Liabilities | 57.27M | 61.00M | 203.22M | 226.04M | 261.66M | 76.10M |
| Stockholders Equity | 225.81M | 233.09M | 292.12M | 292.11M | 370.17M | 204.59M |
Cash Flow | ||||||
| Free Cash Flow | -7.14M | -14.04M | 25.96M | 6.36M | -17.69M | 23.98M |
| Operating Cash Flow | -664.00K | -7.30M | 31.92M | 14.61M | -304.00K | 29.39M |
| Investing Cash Flow | -2.36M | 165.16M | -11.42M | -7.75M | -178.14M | -35.58M |
| Financing Cash Flow | -3.88M | -123.24M | -20.25M | -13.86M | 180.68M | 22.25M |
Clarus Technical Analysis
Positive
3.63
Price Trends
3.44
Positive
3.50
Positive
3.46
Positive
Market Momentum
0.03
Negative
64.91
Neutral
85.56
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLAR, the sentiment is Positive. The current price of 3.63 is above the 20-day moving average (MA) of 3.42, above the 50-day MA of 3.44, and above the 200-day MA of 3.46, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.91 is Neutral, neither overbought nor oversold. The STOCH value of 85.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $189.39M | 15.07 | 7.42% | 4.71% | -4.56% | -2.85% | |
70 Outperform | $5.12B | 23.86 | 25.91% | 1.15% | 4.20% | 24.12% | |
62 Neutral | $2.53B | -1.73 | -46.95% | ― | -3.58% | -12720.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $453.39M | -13.14 | -7.78% | 3.22% | -0.07% | -31.45% | |
49 Neutral | $113.28M | -21.34 | -3.19% | ― | 2.85% | 24.82% | |
45 Neutral | $138.63M | -1.72 | -33.17% | 2.93% | 30.34% | -1749.06% |
* Consumer Cyclical Sector Average
CLAR
Clarus
3.63
-0.72
-16.55%
MODG
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14.17
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74.08%
ESCA
Escalade
13.92
-0.12
-0.88%
GOLF
Acushnet Holdings
88.00
16.41
22.92%
JOUT
Johnson Outdoors
44.07
12.18
38.18%
AOUT
American Outdoor Brands
9.41
-5.37
-36.33%
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.