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Mar 31, 2023

Clarus Q1 2023 Earnings Report

Clarus' Q1 performance was resilient despite macroeconomic headwinds, with Outdoor segment growth offset by challenges in Precision Sport and Adventure segments due to supply chain constraints and market conditions.

Key Takeaways

Clarus Corporation reported a decrease in sales to $97.4 million compared to $113.3 million in the same year-ago quarter. The Outdoor segment saw a slight increase in sales, while the Precision Sport and Adventure segments experienced declines. Net income was $1.6 million, or $0.04 per diluted share, compared to $5.3 million, or $0.13 per diluted share, in the prior year's first quarter.

Consolidated Q1 sales were $97.4 million, down from $113.3 million year-over-year, impacted by foreign currency exchange.

Outdoor segment sales increased by 2% to $52.8 million, driven by direct-to-consumer and international growth.

Gross margin was 37.0%, compared to 39.1% in the same year-ago quarter, influenced by channel and product mix changes and foreign currency exchange.

Adjusted EBITDA was $9.6 million, compared to $19.7 million in the same year-ago quarter, with a margin of 9.9%.

Total Revenue
$97.4M
Previous year: $113M
-14.0%
EPS
$0.18
Previous year: $0.37
-51.4%
Gross Margin
37%
Previous year: 39.1%
-5.4%
Adjusted EBITDA
$9.6M
Previous year: $19.7M
-51.3%
Gross Profit
$36M
Previous year: $44.3M
-18.6%
Cash and Equivalents
$10.3M
Previous year: $16.5M
-37.3%
Free Cash Flow
$1.73M
Previous year: -$12.7M
-113.6%
Total Assets
$515M
Previous year: $661M
-22.1%

Clarus

Clarus

Clarus Revenue by Segment

Forward Guidance

The Company continues to expect fiscal year 2023 sales of approximately $420 million and adjusted EBITDA of approximately $60 million, or an adjusted EBITDA margin of 14.3%.