Overview

* Clarus ( CLAR ) 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 ( CLAR ) 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/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $55.20 $53.50

mln mln (5

Analysts

)

Q2 EPS -$0.22

Q2 Net -$8.40

Income mln

Q2 Gross 35.6%

Margin

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 ( CLAR ) 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:

(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.)