An analyst from B. Riley, Anna Glaessgen, has adjusted the price target for Clarus (CLAR, Financial), lowering it from $5 to $4. Despite this decrease, the analyst maintains a Buy rating for the stock following its first-quarter report. The firm expresses optimism about Clarus's advancements in the Outdoor category, highlighting strong customer response to their updated apparel offerings. Nonetheless, the price target reduction considers the effects of tariffs and a more cautious outlook on the Adventure segment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Clarus Corp (CLAR, Financial) is $4.79 with a high estimate of $7.00 and a low estimate of $4.00. The average target implies an upside of 38.49% from the current price of $3.46. More detailed estimate data can be found on the Clarus Corp (CLAR) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Clarus Corp's (CLAR, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Clarus Corp (CLAR, Financial) in one year is $7.93, suggesting a upside of 129.19% from the current price of $3.46. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Clarus Corp (CLAR) Summary page.
CLAR Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Clarus Corp (CLAR, Financial) reported Q1 sales of $60.4 million, exceeding expectations.
- The company has successfully simplified its product offerings, leading to better inventory management and product differentiation.
- Black Diamond's revamped apparel line received strong feedback, indicating potential for future growth.
- Clarus Corp (CLAR) has a strong balance sheet with zero third-party bank debt, allowing for prudent capital allocation.
- The company is actively working on reducing its reliance on China for manufacturing, aiming to complete the transition by early 2026.
Negative Points
- Clarus Corp (CLAR) experienced a 13% decline in total sales year-over-year, with significant declines in the Adventure segment.
- The company is facing challenges due to tariffs, particularly a 145% tariff on China-sourced products, impacting margins.
- Gross margin decreased to 34.4% from 35.9% in the prior year, affected by lower volumes and unfavorable product mix.
- The Adventure segment saw a 28% revenue decline, largely due to issues with key customers and delayed shipments.
- Clarus Corp (CLAR) withdrew its full-year guidance due to economic uncertainty and the impact of US trade policies.
