SGB Executive Sportsmans
The unsolicited indication of interest from MNC Capital Partners in acquiring the parent of the Camelback, Bell, Giro, Simms, Bushnell brands, and the Remington and Federal ammunition businesses in an all-cash transaction for $35.00 per Vista share.
Layne Rigney said he is spending most of his time in Bozeman, MT, the home of Mystery Ranch, as he is doing a full assessment of the business and how it will integrate with the broader Yeti softgoods business.
Velocity Outdoor segment operating loss for the year ended December 31, 2023 was $32.8 million, a decrease of $51.8 million when compared to segment operating income of $19.0 million for the comparable period in 2022.
PrimaLoft performed an interim impairment test of their goodwill as of December 31, 2023 as a result of operating results that were below forecast amounts that were used as the basis for the purchase price allocation at acquisition.
The 5.11 Tactical brand was the only active lifestyle brand in the segment to post an increase in sales for the year, due in large part to its direct-to-consumer component of the business as all other brands continued to deal with the ongoing retail de-stocking process prevalent across the U.S. retail landscape.
The Apparel category was down approximately 30 percent year-over-year in the fourth quarter. The Footwear category was down approximately 17 percent and the Hardgoods category was down approximately 11 percent for the period.
S&P Credit Rating analysts lowered their forecast for VF and now believe the company will have to sell “sizeable brands” to meaningfully reduce leverage in the near term.
Fiscal 2024 revenue is expected in the range of $1.7 billion to $1.75 billion, roughly a 5.5 percent decline at the mid-point versus the 2023 revenues. Gross margins are expected to reach 45.5 percent of sales, a record high, and EPS is forecast to improve 5X at the mid-point.
The company’s Brands segment, which includes Fjällräven, Royal Robbins, Hanwag, and Fenix Outdoor, had sales of €47.3 million in the fourth quarter, falling 14.8 percent from €55.4 million in the prior-year fourth quarter.
Regarding the acquisitions of Mystery Ranch and Butter Pat Industries, management said both transactions were completed in Q1 of this year, utilizing cash on hand for a combined consideration of $48.5 million.
Yeti hired Layne Rigney as head of softgoods, which includes oversight of the Mystery Ranch business the company recently acquired.
Yue Yuen Industrial reported that its footwear manufacturing segment revenue posted 12.5 percent growth in January 2024, a big turnaround from the 18.4 percent decline in its footwear manufacturing segment for full year 2023.
California-based Liberated said this week it deployed an initial assessment of its Spyder products resulting in a multiple-season plan to phase out PFAS from its branded skiwear, joining other brands making the hard choice in 2024.
Net sales for the fourth quarter were down 5.6 percent in currency-neutral terms. The company said the expected sales decrease in RV Products, driven by a slower period for the RV industry, had a significant negative impact on the quarter.
UA now expects revenue in North America to be down at a high-single-digit rate versus the previous expectation of a 5 to 7 percent decline, and turning to the International business that is now seen to be down at a high-single-digit rate versus the previous low-double-digit rate increase.