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.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Clarus? Access our full analysis report here, it’s free.

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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