Clarus Corporation CLAR reported mixed fourth-quarter 2024 results, wherein adjusted earnings missed the Zacks Consensus Estimate and revenues surpassed the same. However, both metrics decreased on a year-over-year basis.

Following the results, the company’s shares gained 4.5% in the after-hours trading session on March 6.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In 2024, CLAR focused on its strategic roadmap to drive long-term profitable growth. Despite market challenges, the company took steps to streamline operations in the Outdoor segment while investing in R&D and product development for the Adventure segment. CLAR made steady progress in building a leaner and more profitable Outdoor business throughout the year.

Going forward, the company remains focused on strengthening its business in 2025 and exploring new growth opportunities. The company has simplified operations, adjusted inventory and restructured the organization, positioning Black Diamond for growth as market conditions stabilize. Product development and commercialization efforts in the Adventure segment remain a priority, with new product launches planned for the year.

CLAR’s Q4 Earnings & Revenues

CLAR reported an adjusted loss of 8 cents per share. The Zacks Consensus Estimate of earnings was 7 cents per share. In the prior year, it reported an adjusted loss per share of 7 cents.

Revenues of $71.4 million topped the consensus mark of $69.3 million. However, the top line decreased 6.7% year over year. The downside was due to challenges with two large accounts in the OEM and Australia’s wholesale channels within the Adventure segment. However, growth in North America’s wholesale and international distribution channels in the Outdoor segment helped offset some of the impact.

Outdoor segment sales increased 2% year over year to $51.1 million. Sales in the Adventure segment amounted to $20.3 million, down 22.9% year over year.

Operating Highlights of CLAR

In the reported quarter, gross margin was 33.4%, up 450 basis points from the prior-year levels. Adjusted EBITDA was $4.4 million compared with $1.6 million a year ago. Adjusted EBITDA margin also expanded 400 bps year over year to 6.1%.

CLAR’s Balance Sheet

As of Dec. 31, 2024, cash and cash equivalents amounted to $45.4 million compared with $11.3 million as of Dec. 31, 2023. As of Dec. 31, total debt amounted to $1.9 million, down from $119.8 million at the end of 2023.

2025 Outlook of CLAR

The company provided its 2025 outlook. Clarus expects sales in the range of $250-$260 million. Adjusted EBITDA is projected in the $14-$16 million band, with an adjusted EBITDA margin of 5.9% at the mid-point of revenues and adjusted EBITDA. Management forecasts capital expenditures to be between $4 million and $5 million.

CLAR’s Zacks Rank

Clarus currently carries a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Consumer Discretionary Releases

Hilton Worldwide Holdings Inc. HLT reported exceptional fourth-quarter 2024 results, wherein adjusted earnings and total revenues surpassed the Zacks Consensus Estimate and grew year over year.

The company's performance was backed by strong demand for leisure travel, with continued growth in business transient and group travel. These robust trends supported growth in occupancy and average daily rate, resulting in increased revenue per available room. Furthermore, favorable net unit growth compared with last year and the continuous efforts in expanding the portfolio globally added to the uptrend. HLT expects the robust travel trends to continue into 2025, positioning it to deliver strong results in the near term.

Mattel, Inc. MAT reported fourth-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

In 2024, Mattel repurchased $400 million worth of shares and improved its leverage ratio. The company remains ahead of schedule in achieving its $200 million cost-savings target by 2026. For 2025, Mattel projects continued revenue and earnings growth, increased investments in digital gaming and a $600 million share repurchase program, underscoring its commitment to long-term shareholder value creation. MAT anticipates its adjusted EPS in 2025 to be between $1.66 and $1.72 compared with $1.62 in 2024.

Marriott International, Inc. MAR reported fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined during the same period.

Marriott posted strong 2024 results, driven by steady global travel demand and strategic portfolio expansion. The company’s development momentum remained strong, with the signing of a record number of new deals and its development pipeline reaching 577,000 rooms. Given its vast global footprint, a loyalty program comprising nearly 228 million Marriott Bonvoy members and an asset-light model, MAR remains well-positioned to capitalize on travel demand and drive growth in the upcoming periods.

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