Clarus (CLAR) Stock Forecast & Price Target

Clarus is viewed positively because 2Q sales rose to $56.2mn, led by Outdoor’s 8% growth to $39.8mn and broad-based strength across climb, mountain, and apparel, while its mix improved as clearance inventory fell sharply and in-line apparel sales climbed 23%. Even after stripping out the $6.1mn tariff refund and $1.3mn legal accrual reversal, pro forma adjusted EBITDA improved to $0.2mn from a loss of $4.4mn in 2Q25, showing better underlying profitability and healthier segment execution. Adventure remained softer at $16.4mn, but higher gross margin, lower SG&A, and the ONWRD Supply bolt-on support the view that Clarus can protect earnings and expand its outdoor platform despite regional weakness.

Clarus is facing a weak fundamental setup because management’s 2026 sales outlook is only $250mn, essentially flat year over year, while 3Q guidance of $67mn sales and about $3mn adjusted EBITDA sits below prior consensus and implies limited near-term demand momentum. The improved 2026 EBITDA midpoint to $12.5mn is largely driven by non-operating items, including $6mn of tariff refunds and $2mn of eliminated legal expense, which masks only about $0.5mn of real operational improvement despite a better 2Q. Structural risks also remain elevated, with heavy reliance on third-party retailers and wholesale customers, exposure to softer consumer spending, competition, weather sensitivity, foreign exchange, and supply chain disruptions all threatening margins and execution.