What happened
Clarus Corp. (CLAR 2.29%) saw its stock plummet on Monday, as the share price was down roughly 11.5% to $19.70 per share at 3 p.m. ET.
All the major indexes were down as of this time, with the Nasdaq down about 66 points and the Dow Jones Industrial Average down about 46 points.
So what
The sporting apparel and equipment manufacturer and distributor may have been feeling the aftereffects of last Friday's sell-off that stemmed from Federal Reserve Board Chair Jerome Powell's hawkish speech at Jackson Hole, where he indicated that the Fed would continue to move aggressively to bring down inflation. That obviously refers to continued rate increases, which could slow down the economy and bring some economic pain to consumers and businesses.
But there was also news in its industry related to one of its primary competitors, Ammo (NASDAQ: POWW). Reuters reported Monday that the largest investor, Steve Urvan, is seeking to take control of the Ammo board and pivot more toward e-commerce and new other new distribution and manufacturing categories that he believes could push the company past $1 billion in annual sales.
Ammo was up more than 2% on the news, while Clarus was down more than 10%.
Now what
Clarus Corp. trades on the Nasdaq and shouldn't be confused with Clarus Therapeutics Holdings (NASDAQ: CRXT), which got notice last Friday that it was being delisted from the Nasdaq on Aug. 31 because its market value was below the minimum requirement. Clarus Therapeutics was down 28% on Monday.
As for Clarus Corp., it should bounce back from this drop on Monday. In the second quarter, it had record sales of $115 million, up 57% year over year, while net income was up 105% year over year to $3.8 million. Officials project a 25% increase in sales for fiscal year 2022 to $470 million. However, the economy and consumer spending are obviously contributing factors to watch through the end of the year.
