Brief: Clarus Q2 EPS USD -0.22

Clarus

31/07/2025 21:16

Overview

Clarus Q2 sales of $55.2 mln beat analyst expectations, per LSEG data

Net loss of $8.4 mln, adjusted net loss almost stable yr/yr

Co completes sale of PIEPS brand for $9.1 mln

Outlook

Clarus anticipates challenging consumer demand for the rest of the year

Company expects benefits from structural improvements as demand normalizes

Company sees uncertainty from tariffs impacting consumer demand

Result Drivers

OUTDOOR SEGMENT - Sales increased by 1% due to a shift in timing for IGD revenues, partially offset by declines in direct-to-consumer channels in both North America and Europe

ADVENTURE SEGMENT - Sales declined by 8% due to reduced demand from global OEM customers and challenges in the Australian wholesale market

GROSS MARGIN DECLINE - Lower volumes and unfavorable product mix in the Adventure segment, particularly due to promotional sales in North America, led to a decrease in gross margin

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$55.20 mln
$53.50 mln (5 Analysts)
Q2 EPS
-$0.22
Q2 Net Income
-$8.40 mln
Q2 Gross Margin
35.6%
Q2 Capex
$1.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the recreational products peer group is "buy"

Wall Street's median 12-month price target for Clarus Corp is $4.00, about 6.8% above its July 30 closing price of $3.73

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX2vPqgR

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)