Clarus (CLAR): Buy, Sell, or Hold Post Q3 Earnings?

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the leisure products stocks, including Polaris and its peers.

Leisure products cover a wide range of goods in the consumer discretionary sector. Maintaining a strong brand is key to success, and those who differentiate themselves will enjoy customer loyalty and pricing power while those who don’t may find themselves in precarious positions due to the non-essential nature of their offerings.

The 12 leisure products stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was in line.

Luckily, leisure products stocks have performed well with share prices up 10.7% on average since the latest earnings results.

Polaris

Founded in 1954, Polaris designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.

Polaris reported revenues of $1.86 billion, up 6.6% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

Polaris delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 1.7% since reporting and currently trades at $69.95.

Best Q3: American Outdoor Brands

Spun off from Smith and Wesson in 2020, American Outdoor Brands is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.

American Outdoor Brands reported revenues of $57.2 million, down 5% year on year, outperforming analysts’ expectations by 12.3%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

American Outdoor Brands achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 23.2% since reporting. It currently trades at $9.51.

Weakest Q3: Ruger

Founded in 1949, Ruger is an American manufacturer of firearms for the commercial sporting market.

Ruger reported revenues of $126.8 million, up 3.7% year on year, exceeding analysts’ expectations by 2.1%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

As expected, the stock is down 14.1% since the results and currently trades at $37.74.

Read our full analysis of Ruger’s results here.

Harley-Davidson

Founded in 1903, Harley-Davidson is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.

Harley-Davidson reported revenues of $1.34 billion, up 16.5% year on year. This print topped analysts’ expectations by 2.8%. It was a stunning quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Harley-Davidson achieved the fastest revenue growth among its peers. The stock is down 24.2% since reporting and currently trades at $20.54.

Read our full, actionable report on Harley-Davidson here, it’s free.

Clarus

Initially a financial services business, Clarus designs, manufactures, and distributes outdoor equipment and lifestyle products.

Clarus reported revenues of $69.35 million, up 3.3% year on year. This number surpassed analysts’ expectations by 4.3%. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ estimates.

The stock is up 14.7% since reporting and currently trades at $3.74.

Read our full, actionable report on Clarus here, it’s free.

What Happened?

A number of stocks jumped in the afternoon session after investors wagered geopolitical tension would be contained following the U.S. military's operation in Venezuela, with the Dow hitting a fresh record. 

Sentiment remained firmly "risk-on" for early 2026, with Wall Street prioritizing domestic economic strength over foreign turbulence. Analysts noted that while the event raises short-term supply questions, the market largely viewed the potential stabilization of Venezuela's vast oil reserves as a long-term economic positive.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Leisure Products company Clarus jumped 1.9%. Is now the time to buy Clarus? Access our full analysis report here, it’s free for active Edge members.
• Travel and Vacation Providers company American Airlines jumped 2%. Is now the time to buy American Airlines? Access our full analysis report here, it’s free for active Edge members.
• Footwear company Nike jumped 2.4%. Is now the time to buy Nike? Access our full analysis report here, it’s free for active Edge members.
• Real Estate Services company Zillow jumped 1.6%. Is now the time to buy Zillow? Access our full analysis report here, it’s free for active Edge members.
• Wireless, Cable and Satellite company Sirius XM jumped 2.9%. Is now the time to buy Sirius XM? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Sirius XM (SIRI)

Sirius XM’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 2.1% on the news that positive commentary highlighted the company's unique business model, recent strategic developments, and strong financial targets. 

Favorable reports pointed to Sirius XM's position as the sole satellite radio operator, which affords it strong pricing power. The company's revenue structure, with over three-quarters derived from subscriptions rather than advertising, was also seen as a key strength, making it less vulnerable to economic downturns. Strategic developments supported the positive sentiment, including the renewal of Howard Stern's contract through 2028, securing key content for the platform. The company also set a target of $1.5 billion in free cash flow by 2027, aided by $200 million in annualized cost savings achieved in the previous year.

Sirius XM is up 2.9% since the beginning of the year, but at $21.10 per share, it is still trading 22.2% below its 52-week high of $27.11 from February 2025. Investors who bought $1,000 worth of Sirius XM’s shares 5 years ago would now be looking at an investment worth $338.06.

Let’s dig into the relative performance of Latham and its peers as we unravel the now-completed Q3 leisure products earnings season.

Leisure products cover a wide range of goods in the consumer discretionary sector. Maintaining a strong brand is key to success, and those who differentiate themselves will enjoy customer loyalty and pricing power while those who don’t may find themselves in precarious positions due to the non-essential nature of their offerings.

The 12 leisure products stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Latham

Started as a family business, Latham is a global designer and manufacturer of in-ground residential swimming pools and related products.

Latham reported revenues of $161.9 million, up 7.6% year on year. This print fell short of analysts’ expectations by 1.8%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.

Commenting on the results, Scott Rajeski, President and CEO, said, “In the third quarter, we continued to execute effectively on our strategic priorities – driving the awareness and adoption of fiberglass pools and autocovers, strengthening our position in the Sand State markets, and expanding margins through lean manufacturing, value engineering, and accretive acquisitions.

Latham delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 9.9% since reporting and currently trades at $6.49.

Best Q3: American Outdoor Brands

Spun off from Smith and Wesson in 2020, American Outdoor Brands is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.

American Outdoor Brands reported revenues of $57.2 million, down 5% year on year, outperforming analysts’ expectations by 12.3%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

American Outdoor Brands scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.1% since reporting. It currently trades at $8.35.

Weakest Q3: Ruger

Founded in 1949, Ruger is an American manufacturer of firearms for the commercial sporting market.

Ruger reported revenues of $126.8 million, up 3.7% year on year, exceeding analysts’ expectations by 2.1%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

As expected, the stock is down 27.5% since the results and currently trades at $31.87.

Read our full analysis of Ruger’s results here.

Harley-Davidson

Founded in 1903, Harley-Davidson is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.

Harley-Davidson reported revenues of $1.34 billion, up 16.5% year on year. This print surpassed analysts’ expectations by 2.8%. It was a stunning quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Harley-Davidson scored the fastest revenue growth among its peers. The stock is down 21.7% since reporting and currently trades at $21.24.

Read our full, actionable report on Harley-Davidson here, it’s free for active Edge members.

Clarus

Initially a financial services business, Clarus designs, manufactures, and distributes outdoor equipment and lifestyle products.

Clarus reported revenues of $69.35 million, up 3.3% year on year. This result beat analysts’ expectations by 4.3%. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ estimates.

The stock is up 4.3% since reporting and currently trades at $3.40.

Read our full, actionable report on Clarus here, it’s free for active Edge members.

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the leisure products industry, including Clarus and its peers.

Leisure products cover a wide range of goods in the consumer discretionary sector. Maintaining a strong brand is key to success, and those who differentiate themselves will enjoy customer loyalty and pricing power while those who don’t may find themselves in precarious positions due to the non-essential nature of their offerings.

The 12 leisure products stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 2.4% on average since the latest earnings results.

Clarus

Initially a financial services business, Clarus designs, manufactures, and distributes outdoor equipment and lifestyle products.

Clarus reported revenues of $69.35 million, up 3.3% year on year. This print exceeded analysts’ expectations by 4.3%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but EPS in line with analysts’ estimates.

Management Commentary“During the third quarter, we continued to navigate a challenging global consumer landscape,” said Warren Kanders, Clarus’ Executive Chairman.

Interestingly, the stock is up 5.7% since reporting and currently trades at $3.45.

Is now the time to buy Clarus? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Harley-Davidson

Founded in 1903, Harley-Davidson is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.

Harley-Davidson reported revenues of $1.34 billion, up 16.5% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Harley-Davidson pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 19.1% since reporting. It currently trades at $21.93.

Is now the time to buy Harley-Davidson? Access our full analysis of the earnings results here, it’s free for active Edge members.

American Outdoor Brands

Spun off from Smith and Wesson in 2020, American Outdoor Brands is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.

American Outdoor Brands reported revenues of $57.2 million, down 5% year on year, exceeding analysts’ expectations by 12.3%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

American Outdoor Brands delivered the biggest analyst estimates beat but had the slowest revenue growth in the group. Interestingly, the stock is up 5.3% since the results and currently trades at $8.16.

Read our full analysis of American Outdoor Brands’s results here.

Polaris

Founded in 1954, Polaris designs and manufactures high-performance off-road vehicles, snowmobiles, and motorcycles.

Polaris reported revenues of $1.86 billion, up 6.6% year on year. This result topped analysts’ expectations by 3.7%. It was a very strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is down 5.9% since reporting and currently trades at $66.96.

Read our full, actionable report on Polaris here, it’s free for active Edge members.

Acushnet

Producer of the acclaimed Titleist Pro V1 golf ball, Acushnet is a design and manufacturing company specializing in performance-driven golf products.

Acushnet reported revenues of $657.7 million, up 6% year on year. This number surpassed analysts’ expectations by 3.8%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 10.7% since reporting and currently trades at $83.33.

Read our full, actionable report on Acushnet here, it’s free for active Edge members.

Clarus’ third quarter results drew a positive market response, as the company’s revenue growth exceeded Wall Street expectations while profitability metrics held steady. Management credited the performance to strong demand for outdoor products in North American wholesale, notable success with the revamped Black Diamond apparel line, and the onboarding of new adventure customers in Australia. Executive Chairman Warren Kanders highlighted that the company’s shift toward a more focused product mix, as well as reductions in discontinued merchandise and operational expenses, were central to the quarter’s incremental improvements.

Is now the time to buy CLAR? Find out in our full research report (it’s free for active Edge members).

Clarus (CLAR) Q3 CY2025 Highlights:

• Revenue: $69.35 million vs analyst estimates of $66.51 million (3.3% year-on-year growth, 4.3% beat)
• Adjusted EPS: $0.05 vs analyst estimates of $0.06 (in line)
• Adjusted EBITDA: $2.80 million vs analyst estimates of $2.70 million (4% margin, relatively in line)
• Operating Margin: -4.4%, up from -8% in the same quarter last year
• Market Capitalization: $132.5 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Clarus’s Q3 Earnings Call

• William Dossett (BNP Paribas): asked about the offset to Black Diamond apparel’s growth, given Outdoor segment sales were flat. CFO Michael Yates explained that weakness in the direct-to-consumer business and the absence of PIEPS sales offset the apparel gains.
• William Dossett (BNP Paribas): inquired about retail partner order trends for the spring season and holiday outlook. President Neil Fiske responded that spring order books appear positive though cautious, with wholesale channel momentum, but the holiday environment remains uncertain and more promotional.

Catalysts in Upcoming Quarters

In future quarters, our analyst team will be focused on (1) the effectiveness of Clarus’ second phase of tariff mitigation and sourcing changes, (2) the momentum of the Black Diamond apparel line and additional product launches, and (3) the pace of margin improvement as FX contracts roll off and cost actions take hold. We will also monitor retailer inventory trends and consumer sentiment as indicators of channel health.

Clarus currently trades at $3.45, up from $3.26 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

Our Favorite Stocks Right Now

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return).

What Happened?

Shares of outdoor lifestyle and equipment company Clarus jumped 11.3% in the afternoon session after it reported mixed third-quarter 2025 results, where a significant beat on profitability overshadowed an earnings miss. 

The company's revenue grew 3.3% year-on-year to $69.35 million, surpassing Wall Street's estimate of $66.51 million. While its adjusted earnings per share of $0.05 fell just short of the $0.06 consensus, investors focused on a more impressive metric. Clarus delivered adjusted EBITDA of $4.73 million, crushing analysts' expectations of $2.70 million by nearly 75%. This substantial outperformance in profitability suggested better-than-expected operational efficiency and margin control, signaling to the market that the company's underlying financial health may be stronger than the headline earnings figure suggested.

Is now the time to buy Clarus? Access our full analysis report here.

What Is The Market Telling Us

Clarus’s shares are very volatile and have had 22 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.

The previous big move we wrote about was about 1 month ago when the stock dropped 2.8% on the news that a confluence of negative economic data pointed to a weak economy. The latest Survey of Consumer Expectations from the New York Fed revealed that households' short-term inflation expectations rose, while their outlook on the labor market deteriorated. Consumers expressed greater concern about potential job losses and expected lower earnings growth, factors that directly impact discretionary spending. Adding to the unease, Chief Economist at Moody’s Analytics, Mark Zandi, warned that 22 states demonstrated clear signs of a recession, placing the broader U.S. economy in a precarious position. The U.S. government shutdown further dampened sentiment, threatening to weigh on incomes and purchasing power.

Clarus is down 21.4% since the beginning of the year, and at $3.59 per share, it is trading 30.7% below its 52-week high of $5.18 from December 2024. Investors who bought $1,000 worth of Clarus’s shares 5 years ago would now be looking at an investment worth $226.07.

While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.