Vista Outdoor, Inc. reported sales dropped 13 percent in the fiscal second quarter ended September 24 with declines of 19 percent in its Sporting Products segment and 6 percent in its Outdoor Products segment. Earnings and sales results were in line with its updated guidance given on October 16.

On October 16, Vista also announced the sale of its Sporting Products business to Czechoslovak Group. (CSG) and slashed its guidance for the year, largely due to weakness in its Outdoor Products segment, which is being renamed Revelyst.

The Outdoor Products segment includes Bell, Bushnell, Bushnell Golf, CamelBak, Camp Chef, Foresight Sports, Fox Racing, Giro, QuietKat, Simms Fishing, and Stone Glacier. The Sporting Products segment includes CCI, Federal, Hevi-Shot, Remington, and Speer.

Consolidated results for the three months ended September 24, 2023 versus the three months ended September 25, 2022

  • Sales decreased $105 million to $677 million, down 13 percent, in line with our recent earnings pre-release, driven by lower shipments across nearly all categories in the Sporting Products segment and lower volume as channel partners continue to be cautious with purchasing due to inventory levels and short-term consumer pressures in the Outdoor Products businesses. Organic sales were $646 million, a decline of 17 percent.
  • Gross profit declined 21 percent to $209 million and gross profit margin decreased 270 basis points to 30.9 percent primarily due to decreased volume and price in the Sporting Products segment and decreased volume in the organic Outdoor Products businesses, partially offset by acquisitions.
  • Operating expenses were $133 million, up 1 percent, primarily driven by increased selling, general, and administrative expenses from acquired businesses, partially offset by decreased selling costs in Sporting Products and decreased selling, general, and administrative expenses related to the organic businesses in Outdoor Products.
  • Operating income decreased 42 percent to $76 million. Operating income margins decreased 560 basis points to 11.2 percent.
  • Net income decreased 53 percent to $44 million. Net income margin decreased 539 basis points to 6.6 percent.
  • Adjusted EBITDA decreased 28 percent to $116 million. Adjusted EBITDA margins decreased 370 basis points to 17.2 percent.
  • Diluted Earnings per Share (EPS) was $0.76, down 53 percent, compared with $1.62. Adjusted EPS was $0.96, down 42 percent, compared with $1.67.
  • Year to date cash provided by operating activities was $107,540, compared with $193,402. Year-to-date adjusted free cash flow was $115,735, compared with $201,489.

For more details about the the new structure, leadership, turnaround plans, segment results and outlook for the new Revelyst and Sporting Products ammo companies created by the Vista Outdoor split, read more here:

EXEC: Vista Fine-Tunes New Structure, Leadership for Revelyst and Ammo Company