Clarus Corporation Reports Decline in Sales and Increased Losses in Q2 2025

Clarus Corporation reported a decline in financial performance for the second quarter of 2025, with total sales decreasing by 2.2% to $55.2 million compared to $56.5 million in the same period last year. The company's domestic sales rose by 7.8% to $24.7 million, while international sales fell by 9.0% to $30.5 million. The decrease in overall sales was attributed primarily to a drop in the Adventure segment, which saw a decline in demand from global OEM customers and a challenging wholesale market in Australia. The Outdoor segment, however, experienced a slight increase in sales, aided by a shift in timing for revenues from independent global distributors.

The company's gross profit also fell, down 3.6% to $19.7 million, resulting in a gross margin of 35.6%, slightly lower than the previous year's 36.1%. This decline was influenced by lower sales volumes and an unfavorable product mix, particularly in the Adventure segment. Operating expenses increased to $30.6 million, leading to an operating loss of $10.9 million, compared to a loss of $8.1 million in the prior year. The net loss for the quarter was $8.4 million, or $0.22 per share, compared to a loss of $5.5 million, or $0.14 per share, in the same quarter of 2024.

In terms of strategic developments, Clarus completed the acquisition of RockyMounts in December 2024, which contributed to increased sales in the Adventure segment. However, the company also recognized an impairment of $1.6 million related to indefinite-lived intangible assets, specifically the PIEPS trademark, during the quarter. The company has been undergoing restructuring efforts since 2023, incurring $161,000 in restructuring charges in the latest quarter, consistent with the previous year.

Operationally, Clarus reported a total cash balance of $28.5 million as of June 30, 2025, down from $45.4 million at the end of 2024. The company has classified certain assets and liabilities related to its PIEPS business as held for sale, with the sale expected to close shortly. Looking ahead, Clarus anticipates continued challenges in the market, including inflationary pressures and fluctuating consumer demand, but remains focused on leveraging its brand portfolio for long-term growth. The company plans to fund its operations and expansion through cash flows and proceeds from recent asset sales.