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Clarus Q1 2025 Earnings Report
Clarus reported a decrease in sales and a net loss for the first quarter of 2025, while continuing to execute strategic initiatives and announcing the divestiture of the PIEPS snow safety brand.
Key Takeaways
Clarus Corporation reported a net loss of $5.2 million on sales of $60.4 million for the first quarter ended March 31, 2025. This compares to net income of $21.9 million on sales of $69.3 million in the prior year quarter. The company's gross margin was 34.4%, down from 35.9% in the same period last year. Due to macroeconomic uncertainty, the company has withdrawn its full-year 2025 guidance.
Sales decreased by 13% to $60.4 million in Q1 2025 compared to $69.3 million in Q1 2024.
The company reported a net loss of $5.2 million, or $(0.14) per diluted share, in Q1 2025, compared to net income of $21.9 million, or $0.57 per diluted share, in Q1 2024.
Gross margin was 34.4% in Q1 2025, a decrease from 35.9% in Q1 2024, primarily due to lower volumes and unfavorable product mix.
Clarus announced an agreement to divest its PIEPS snow safety brand for €7.8 million and appointed Tripp Wyckoff as the new Managing Director of the Adventure segment.
Clarus
Clarus
Clarus Revenue by Segment
Revenue by Segment
Outdoor Segment Revenue
CapyFin.comAdventure Segment Revenue
CapyFin.com Forward Guidance
Clarus has withdrawn its full-year 2025 revenue, adjusted EBITDA, capital expenditures, and free cash flow guidance due to ongoing macroeconomic uncertainty, including the impact of tariffs and potential consequences on consumer demand. The company intends to provide updated guidance once visibility improves.
Positive Outlook
- Continued execution of strategic roadmap, strengthening the core Outdoor segment and investing to scale the Adventure segment.
- Maintained momentum at Outdoor, prioritizing best and most profitable styles.
- Black Diamond remains an iconic brand with strong feedback on revamped apparel line.
- Investments in innovation for Adventure segment expected to enhance new product introductions in the second half of the year.
- Operational and organizational progress at Adventure, despite challenging conditions.
Challenges Ahead
- Increasingly challenging consumer backdrop across the outdoor market.
- Slowdown in OEM business and core Australian wholesale market contributed to lower Q1 Adventure sales.
- Forward outlook remains highly unpredictable due to macroeconomic uncertainty.
- Potential consequences of U.S. global trade policies, including tariffs, on consumer demand.
- Withdrawal of full-year 2025 guidance due to lack of visibility.
Revenue & Expenses
Visualization of income flow from segment revenue to net income