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Analysts said Vista Outdoor’s agreement to sell its Sporting Products segment business to Czechoslovak Group (CSG) for $1.91 billion appeared largely in line with the businesses’ valuation. Vista’s 24 percent stock drop on Monday was attributed to Vista’s sharp guidance cut tied to the deteriorating Outdoor Products business.
At its Investor Day on Tuesday, Helen of Troy, the parent of Hydro Flask and Osprey, outlined an “Elevate for Growth” platform designed to annually expand sales between 3 percent and 4 percent and EPS by 10 percent or greater over the next six years.
Along with the sale of its Sporting Products business to Czechoslovak Group. (CSG), Vista Outdoor announced that it was slashing its full-year guidance, largely due to weakness at its Outdoor Products segment.
Vista Outdoor announced that it planned to sell its Sporting Products business to Czechoslovak Group. (CSG) for $1.91 billion, shifting from a planned spinoff of its Outdoor Products segment. Gary McArthur, interim CEO, said, “We believe this creates meaningful value for stockholders, and sets up both Sporting Products and Outdoor Products for long-term success.”
One bright spot for consumers was in the month-over-month CPI for Apparel, which declined 0.8 percent from August, most likely owing to the de-stocking and promotional environment at retail.
Osprey reportedly surpassed expectations for the third straight quarter with help from improving travel demand, but Hydro Flask continued to be pressured by a shift in consumer preference from insulated bottles to tumblers.
In the JLL 2023 Holiday Shopping Survey Report consumers are poised to increase spending on entertainment and experiences during the holiday season but at the expense of the amount they would have spent on gift giving. The survey found spending on physical goods to decline 13.8 percent.
Dick’s Sporting Goods followed Macy’s in reducing its planned holiday hiring plans this year versus 2022. The downbeat hiring targets come amid forecasts of lowered seasonal hiring overall this year due to higher labor costs and expectations of softer holiday selling.
Speaking at Wells Fargo’s Sixth Annual Consumer Conference, Academy Sports and Outdoors officials discussed the retail chain’s competitive advantages and how it reworked its expansion strategy while rolling out an aggressive strategy.
Clarus Corp.’s executive chairman, the largest shareholder, Warren Kanders, submitted a non-binding bid to acquire the company’s Precision Sports segment, which includes Sierra Bullets and Barnes Bullets brands, for $160 million.
Although a few retailers outperformed in the second quarter, big names in the active lifestyle space fought through a challenging quarter amid promotional pressures, retail theft and the consumer’s continued shift away from discretionary purchases.
The recent issues with inventory and reduced consumer demand in the broader firearms market at retail had an effect of the company’s Shooting Sports segment, but strong growth in the company’s Outdoor Lifestyle segment offset the decline in the shooting accessories business.