CLARUS CORPORATION Reports Fourth Quarter FY2022 Earnings Results on December 31 2022

Earnings Overview

CLARUS CORPORATION ($NASDAQ:CLAR) reported their FY2022 fourth-quarter earnings results on December 31, 2022. This quarter ended February 27, 2023 and total revenue amounted to a decrease of 680.8% from the same period the previous year, amounting to USD -81.6 million. Reported net income for the quarter was USD 104.2 million, a drop of 11.8% year over year.

Transcripts Simplified

In the fourth quarter, Sales were $104.2 million compared to $118.2 million in the prior year quarter. Organic sales were down 11%, MAXTRAX contributed 2%, and foreign exchange was a 3% headwind in the quarter. Sales at the Outdoor segment were $55.3 million versus $65.1 million in the fourth quarter of 2021. Precision Sports sales increased 10% in the quarter to $30.3 million, with strength in the international business continuing.

Adventure segment contributed sales of $18.5 million reflecting lower consumer demand due to challenging economic environment and inventory constraints. An impairment charge of $92.3 million was recorded due to reduction in market capitalization of the Clarus Corporation and lower sales growth and lower EBITDA expectations.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Clarus Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Clarus Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Clarus Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Clarus Corporation are shown below. More…

Share Price

On December 31 2022, CLARUS CORPORATION reported its fourth quarter FY2022 earnings results. On Monday of that week, the stock opened at $10.0 and closed at $9.7, a decrease of 2.0% from its previous closing price of $9.9. This dip in stock price reflects investor sentiment in the company which may have been negatively affected by the earnings announcement. This was an unexpected result for investors, who had been expecting an increase in overall performance for the fourth quarter.

Overall, the fourth quarter earnings report has not been received positively by investors in CLARUS CORPORATION, as the stock price has dropped and the financial results have not met expectations. Investors will be watching closely to see if the company can make a comeback in the next quarter, or if the negative results will continue. Live Quote…

Analysis

GoodWhale has conducted an analysis of CLARUS CORPORATION‘s wellbeing. Our Star Chart categorizes them as a ‘cheetah’, which suggests that the company has achieved high revenue or earnings growth, but is considered less stable because of its lower profitability. This type of company might be attractive to investors that are looking for higher returns, but are willing to accept a greater level of risk. CLARUS CORPORATION’s health score is 5/10 with regards to their cash flows and debt. This indicates that the company is likely to be able to sustain future operations in times of crisis. When it comes to things like growth, asset, dividend, and profitability, CLARUS CORPORATION is considered to be strong in growth and medium in the others. More…

Peers

The competition in the global musical instruments market is expected to intensify in the coming years as leading companies such as Yamaha Corporation, Johnson Health Tech Co. Ltd., and Rapala VMC Corporation battle for market share. The competition among these companies is likely to be driven by factors such as product innovation, marketing campaigns, and expansion into new geographic markets.

– Yamaha Corp ($TSE:7951)

Yamaha Corporation is a Japanese multinational corporation and conglomerate with a wide range of products and services, predominantly musical instruments, electronics, motorcycles, power sports equipment, and other motorized products.

The company has a market capitalization of 955.5 billion as of 2022 and a return on equity of 7.25%. Yamaha’s products are marketed under a variety of brand names, including Yamaha, Line 6, Steinberg, and Yamaha Pro Audio. The company also operates a number of subsidiaries, including Yamaha Music Education, Yamaha Motor Company, and Yamaha Golf-Car Company.

– Johnson Health Tech Co Ltd ($TWSE:1736)

Johnson Health Tech Co Ltd has a market cap of 22.03B as of 2022, a Return on Equity of -2.12%. The company is a leading manufacturer and distributor of fitness equipment and related products. Its products include treadmills, ellipticals, exercise bikes, strength training equipment, and home gyms. The company operates in over 100 countries and has a strong presence in the United States, Europe, and Asia.

– Rapala VMC Corp ($OTCPK:RPNMF)

Rapala VMC Corporation is a Finnish manufacturer of fishing lures, hooks, and other fishing tackle. The company has a market capitalization of 165.26 million as of 2022 and a return on equity of 7.98%. Rapala VMC Corporation is a leading provider of fishing products and services worldwide. The company’s products are sold in over 140 countries. Rapala VMC Corporation’s products include fishing lures, hooks, line, and other fishing tackle. The company also manufactures and sells fishing rods, reels, and other fishing equipment.

Summary

Investors may be concerned with the latest earnings results from CLARUS CORPORATION for the fourth quarter of FY2022. Total revenue for the quarter decreased by a staggering 680.8%, and reported net income dropped 11.8% year over year. This could suggest that the company is having difficulty competing in their industry, or that the current economic environment is adversely impacting the company. Investors should carefully analyze the situation before making any decisions regarding an investment in the company.