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Clarus Corporation (CLAR)
NASDAQ:CLAR
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Clarus
(NASDAQ:CLAR)
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Rating:50Neutral
Price Target:
$3.50
▼(-4.63% Downside)
Clarus faces significant financial challenges with declining revenue and profitability, impacting its overall score. While there are positive signs of growth in specific segments and cost reduction efforts, the technical indicators suggest bearish momentum. The valuation is mixed, with a negative P/E ratio but a reasonable dividend yield. The earnings call provided some optimism with improvements in certain areas, but macroeconomic challenges persist.
Positive Factors
Revenue Growth
Exceeding revenue expectations in Q3 indicates strong market demand and effective sales strategies, supporting long-term growth potential.
Product Innovation
The success of revamped Black Diamond apparel demonstrates Clarus's ability to innovate and meet consumer preferences, bolstering brand strength.
Cost Management
Effective cost management through SG&A reductions enhances operational efficiency, improving profitability and financial health over time.
Negative Factors
Margin Pressure
Declining margins in the Adventure segment due to tariffs and inventory issues could strain profitability and limit future investment capacity.
Cash Flow Challenges
Negative cash flows indicate potential liquidity risks, hindering Clarus's ability to invest in growth opportunities and manage debt obligations.
Macroeconomic Headwinds
Ongoing macroeconomic challenges, including trade policies and consumer behavior, pose risks to Clarus's revenue stability and strategic planning.
Clarus (CLAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$126.73M
Dividend Yield3.08%
Average Volume (3M)141.12K
Price to Earnings (P/E)―
Beta (1Y)0.97
Revenue Growth10.53%
EPS Growth-1318.01%
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 Cap0.95
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit1.40
Enterprise Value/Ebitda-9.25
Forecast
1Y Price Target
$3.50Price Target Upside-4.63% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Clarus Business Overview & Revenue Model
Company DescriptionClarus Corporation (CLAR) is a global leader in the outdoor and sporting goods sector, specializing in the design, manufacture, and distribution of premium outdoor products. The company operates primarily through its well-known brands, including Black Diamond Equipment and Sierra Designs, which cater to a diverse range of outdoor enthusiasts by offering equipment and apparel for climbing, skiing, and mountain sports. Clarus is committed to innovation and sustainability, striving to meet the needs of its customers while promoting environmental responsibility in the outdoor industry.
How the Company Makes MoneyClarus generates revenue through multiple key streams, primarily by selling outdoor gear and equipment under its brands. The company’s revenue model is built around direct sales to consumers, wholesalers, and retailers, which allows for a broad distribution of its products. Key revenue streams include sales of climbing gear, skiing equipment, and outdoor apparel, all of which are marketed to both individual consumers and commercial clients such as retailers and outdoor specialty shops. Additionally, Clarus benefits from strategic partnerships with retailers and distributors, which enhance its market reach and brand visibility. The company's focus on high-quality, innovative products helps maintain customer loyalty and drives repeat sales, while seasonal trends in outdoor activities also impact revenue generation.
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 is facing financial difficulties with declining revenue and profitability, as evidenced by negative EBIT and EBITDA margins. Despite these challenges, the company maintains a solid equity base and low leverage, providing some financial flexibility.Income Statement
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.40
Negative
Balance Sheet
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.55
Neutral
Cash Flow
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 2023.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 256.94M | 264.31M | 286.02M | 315.25M | 265.97M | 224.01M |
| Gross Profit | 86.12M | 92.62M | 97.51M | 110.22M | 136.93M | 77.80M |
| EBITDA | -13.04M | -56.77M | 1.49M | 12.09M | 13.03M | 14.62M |
| 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 | 12.06M | 19.46M | 17.79M |
| Total Debt | 1.98M | 16.65M | 136.00M | 139.03M | 141.53M | 34.62M |
| 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
3.67
Price Trends
3.52
Positive
3.53
Positive
3.67
Positive
Market Momentum
>-0.01
Negative
59.22
Neutral
47.70
Neutral
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 3.67 is above the 20-day moving average (MA) of 3.36, above the 50-day MA of 3.52, and above the 200-day MA of 3.67, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 47.70 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $4.59B | 21.40 | 25.91% | 1.17% | 4.20% | 24.12% | |
65 Neutral | $165.23M | 13.15 | 7.42% | 5.26% | -4.56% | -2.85% | |
64 Neutral | $402.60M | ― | -8.33% | 3.39% | -3.56% | -407.47% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.70B | ― | -46.53% | ― | -2.35% | -7104.57% | |
50 Neutral | $126.73M | -1.53 | -33.87% | 3.08% | 10.53% | -1318.01% | |
43 Neutral | $86.70M | ― | -2.64% | ― | 5.56% | 56.01% |
* Consumer Cyclical Sector Average
CLAR
Clarus
3.67
-0.62
-14.45%
MODG
Topgolf Callaway Brands
10.60
0.97
10.07%
ESCA
Escalade
11.91
-2.20
-15.59%
GOLF
Acushnet Holdings
79.65
8.04
11.23%
JOUT
Johnson Outdoors
38.96
5.74
17.28%
AOUT
American Outdoor Brands
6.56
-2.73
-29.39%
Clarus Corporate Events
Clarus Corp Reports Growth Amidst Challenging Market
Nov 7, 2025
Clarus Corporation, headquartered in Salt Lake City, Utah, is a global leader in the design and development of equipment and lifestyle products for outdoor enthusiasts, known for its innovative brands like Black Diamond and Rhino-Rack.
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.