In This Article:
Outdoor lifestyle and equipment company Clarus (NASDAQ:CLAR) reported Q1 CY2025 results topping the market’s revenue expectations , but sales fell by 12.8% year on year to $60.43 million. Its non-GAAP loss of $0.02 per share was $0.03 below analysts’ consensus estimates.
Is now the time to buy Clarus? Find out in our full research report.
Clarus (CLAR) Q1 CY2025 Highlights:
-
Revenue: $60.43 million vs analyst estimates of $56.23 million (12.8% year-on-year decline, 7.5% beat)
-
Adjusted EPS: -$0.02 vs analyst estimates of $0.01 ($0.03 miss)
-
Adjusted EBITDA: -$761,000 vs analyst estimates of $589,400 (-1.3% margin, significant miss)
-
Pulled its guidance due to tariff uncertainty
-
Operating Margin: -11.2%, down from -9.8% in the same quarter last year
-
Market Capitalization: $131 million
“Against an increasingly challenging consumer backdrop across the outdoor market, we continued to execute in line with our strategic roadmap in the first quarter, strengthening the core of our Outdoor segment and investing to scale our Adventure segment,” said Warren Kanders, Clarus’ Executive Chairman.
Company Overview
Initially a financial services business, Clarus (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.
Sales Growth
A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Clarus grew its sales at a weak 2.9% compounded annual growth rate. This fell short of our benchmarks and is a poor baseline for our analysis.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Clarus’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 17.4% annually.
This quarter, Clarus’s revenue fell by 12.8% year on year to $60.43 million but beat Wall Street’s estimates by 7.5%.
Looking ahead, sell-side analysts expect revenue to grow 4.2% over the next 12 months. While this projection indicates its newer products and services will fuel better top-line performance, it is still below average for the sector.
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.