What Clarus Corp. told the SEC could break it.

About 51% of Clarus's sales are denominated in foreign currencies (most significantly AUD, EUR, CAD, NOK and CHF) and ~58% of sales are international, so FX moves materially affect sales and profitability.

“For the year ended December 31, 2025, approximately 51% of our sales were denominated in foreign currencies (compared to 54% of our sales from continuing operations in the prior year), the most significant of which were the Australian Dollar, Euro, Canadian Dollar, Norwegian Kroner, and Swiss Franc.”

Clarus's outdoor products use aluminum, steel, nylon, plastics, metal/electrical components and textiles/foams; input-price moves in these commodities affect its costs.

“Our primary materials include aluminum, steel, nylon, corrugated cardboard for packaging, metal, plastic and electrical components, and various textiles, foams, and fabrics.”

The vast majority of Clarus's products are produced by independent manufacturers primarily in Asia and Eastern Europe; while no single supplier/country dominates, the offshore production base exposes it to trade-war and international disruption risk.

“The vast majority of our products sold were produced by and purchased from independent manufacturers primarily located in Asia and Eastern Europe.”

Tariffs imposed by the U.S. reduced Clarus's gross margin in both its Outdoor and Adventure segments in 2025, and future tariffs/trade-war actions on imports from China/Canada/Mexico could further hurt results.

“Gross margin during the year ended December 31, 2025, decreased compared to the prior year as a result of lower volumes at the Outdoor and Adventure segments, impacts due to tariffs imposed by the United States for both segments, and an unfavorable product mix and increases of inventory reserve expenses at the Adventure segment.”