clarus corp announces board changes and stock plan update

Published 02/06/2025, 21:50
clarus corp announces board changes and stock plan update

Clarus Corporation (NASDAQ:CLAR), currently trading at $3.14 near its 52-week low of $3.02, reported several key developments following its annual meeting of stockholders, held on May 29, 2025, according to a recent SEC filing. According to InvestingPro analysis, the company has maintained dividend payments for 8 consecutive years despite recent market challenges.

Two directors, Michael A. Henning and Donald L. House, concluded their terms and chose not to stand for re-election. Their departure was not due to any disagreements with the company. The stockholders approved the election of five directors: Warren B. Kanders, Nicholas Sokolow, Susan Ottmann, Roger Werner, and Mark M. Besca. These leadership changes come as the company, with a market capitalization of $120.58 million, maintains strong liquidity with a current ratio of 4.46.

Additionally, stockholders ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2025. A significant update was also made to the Clarus Corporation Amended and Restated 2015 Stock Incentive Plan. The plan reduces the number of shares available for issuance from over 12 million to a fixed 7.5 million. It also removes the evergreen provision, which allowed for annual increases in shares, and limits awards to participants. The plan’s term was extended to ten years from its effective date.

Furthermore, Clarus granted Executive Chairman Warren B. Kanders approval to increase his beneficial ownership to approximately 32.9% of the company’s outstanding shares, subject to certain conditions. This decision is part of an agreement under the company’s rights plan.

The information is based on a press release statement from an SEC filing.

In other recent news, Clarus Corp reported its Q1 2025 earnings, revealing a 13% decline in net sales year-over-year, with revenues of $60.4 million, missing the forecasted $76.19 million. The company faced a challenging quarter with a 6% decrease in the outdoor segment and a 28% decline in the adventure segment. Despite these setbacks, Clarus Corp’s stock rose by 2.64% in aftermarket trading, suggesting investor focus on strategic initiatives rather than immediate financial performance. The company has withdrawn its full-year 2025 financial guidance amid market uncertainties, including US trade policies and tariffs, which are estimated to have an impact of $3.5-$4 million. Analyst firms have not provided any recent upgrades or downgrades for Clarus Corp. Meanwhile, the company is accelerating its exit from China manufacturing to mitigate tariff risks and has launched a new e-commerce site, along with opening a flagship store in Seattle. Clarus Corp’s cash and equivalents stand at $41.3 million, with total debt at $1.9 million, and the company remains committed to maintaining its competitive position and financial strength.

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