What Happened?
Shares of outdoor lifestyle and equipment company Clarus (NASDAQ:CLAR) fell 10.9% in the morning session after the company reported disappointing second-quarter 2025 financial results, including a wider net loss and a drop in sales.
The company's sales fell 2% year-over-year to $55.2 million, while its net loss widened to $8.4 million from $5.5 million in the same quarter last year. Clarus also missed analyst estimates on its adjusted loss per share. Gross margins tightened to 35.6% as the company used promotional sales to move products. Management noted that the Adventure segment's sales decreased 8% and withdrew future financial guidance, citing uncertainty around tariffs and the economy. The company's specific concerns about tariffs were amplified by broader market fears after a weak jobs report and the announcement of new, widespread tariffs on imported goods.
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What Is The Market Telling Us
Clarus’s shares are quite volatile and have had 18 moves greater than 5% over the last year. But moves this big are rare even for Clarus and indicate this news significantly impacted the market’s perception of the business.
Clarus is down 29.4% since the beginning of the year, and at $3.23 per share, it is trading 44.1% below its 52-week high of $5.77 from July 2024. Investors who bought $1,000 worth of Clarus’s shares 5 years ago would now be looking at an investment worth $263.60.
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