Overview

• Clarus Q3 sales rose 3% to $69.3 mln, beating analyst expectations

• Adjusted EBITDA for Q3 was $2.8 mln, exceeding analyst estimates

• Company reported a net loss of $1.6 mln, improved from prior year

Outlook

• Clarus focuses on unlocking value in Outdoor and Adventure segments

• Company aims to enhance profitability and long-term value creation

• Clarus targets growth opportunities in Americas and Europe

Result Drivers

• ADVENTURE SEGMENT - Sales increased 16%, supported by strong wholesale market in Australia and RockyMounts acquisition

• OUTDOOR SEGMENT - Black Diamond apparel sales rose 29%, offsetting some declines in other areas

• GROSS MARGIN - Slight improvement due to higher Adventure volumes and favorable Outdoor product mix

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the recreational products peer group is "buy"

• Wall Street's median 12-month price target for Clarus Corp is $3.75, about 8.5% above its November 5 closing price of $3.43

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNX9nn8q3

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)