Vista Outdoor reported preliminary results for the fiscal first quarter ended June 30 but did not report consolidated numbers. Instead, it reported results for its two business segments: Outdoor Products, also known as Revelyst, and Sporting Products, the ammunition business now being referred to as The Kinetic Group.

The company also delayed it shareholder vote for another week rolling an increase in the offer from CSG Group to acquire the ammunition business, which includes Remington and Federal, as well as other ammunition-related businesses. Read SGB Media‘s coverage here.

Revelyst
Sales for the consolidated Revelyst business are expected to decrease to a range of $272 million to $276 million for the fiscal first quarter.

The company said the decline relative to the prior-year first quarter was primarily driven by $13 million of orders expected in Q1 shifting to Q2 due to:

  • Challenges related to shipping filled orders at the end of the quarter and delayed new product introductions to Q2;
  • Strong new product launches at Bushnell Golf in the prior year period;
  • The divestiture of the RCBS brand;
  • Year-over-year pre-order delivery timing delays at Revelyst Adventure Sports; and
  • The February 2024 fire at Fiber Energy’s main production facility that temporarily shuttered operations.

These negatives were partially offset by another quarter of growth at Foresight, which resulted from the strong launch of the QuadMAX and Foresight Falcon product offerings, the launch of the Gridiron line of flat-top griddles at Camp Chef, and an increase in government sales.

Operating income is expected to be in the range of negative $2.5 million to negative $0.5 million.

Adjusted EBITDA is expected to be in the range of $14.5 million to $16.5 million for the quarter. The decrease relative to the prior-year quarter was primarily driven by lower volume due to the factors above, partially offset by $5 million in realized cost savings from the Gear Up transformation program, reduced ocean freight rates at Revelyst Adventure Sports and component cost savings at Revelyst Precision Sports Technology.

Revelyst Segment Notes

In Adventure Sports, the company said “newness” is gaining traction with customers where many new styles, such as the V3RS, Raceframe, Purevue and more, are sold out. The company intends to further capitalize on this behavior with upcoming product launches across the platform.

In Outdoor Performance, recent and upcoming new product launches across the platform, including the launch of the Camp Chef Gridiron in the spring, which drove 8 percent growth in the flat-top category and the upcoming Bushnell R-Series Optics, are said to demonstrate the company’s “commitment to innovation”; and

In Precision Sports Technology, Foresight reportedly saw another quarter of growth due to the QuadMAX and Falcon product launches. The delayed launch of the Phantom 3 GPS drove Bushnell Golf sales lower than expected in the quarter, though the company still expects this product to capture additional sales for the rest of FY2025.

Foresight and Bushnell Golf are now under the same roof and cross-collaborating on new products, including an innovation the company plans to announce later this year.

“Vista Outdoor executed against our plan in the first quarter, and we are grateful for the hard work across the organization that has driven solid results in the face of continued market headwinds in certain segments, which gives us confidence in our full-year financial targets,” said Eric Nyman, Co-CEO of Vista Outdoor and CEO of Revelyst. “We are looking forward to bringing this separation process to an end, which will allow our teams to focus further on the opportunities ahead. At Revelyst, we continue to leverage our portfolio of category-defining Power Brands to win market share despite challenges related to market softness, order timing and divestitures.”

Nyman continued, “Specifically at Simms, we hold a dominant position in waders and are gaining share in sportswear; at Bushnell Golf, we continue to set the standard with our leading position. And at Fox, Bell, Giro, and CamelBak, we are capturing share across numerous categories, including Helmets, Mountain Bike Protection and Bike Hydration, despite a declining market environment.”

Nyman said the company remains focused on driving growth and share gains regardless of market conditions and is poised to “revolutionize” its future through “innovative, brand-led and consumer-obsessed product and technology offerings, as well as leading partnerships.”

“Across the enterprise, we are making good progress on our Gear Up transformation, where we saw $5 million in realized savings during the quarter,” Nyman added. “We significantly reduced our inventories by over $100 million year-over-year and continue to create an optimal portfolio through strategic M&A with the sale of the Fiber Energy business in the second quarter. The Gear Up transformation is working to simplify our business model, increase efficiency and expand strategic opportunities that allow us to reinvest in our highest potential brands, with more progress expected in the months ahead.”

The Kinetic Group
The Kinetic Group (TKG) sales are expected to be between $368 million and $372 million for the fiscal first quarter. The decrease relative to the prior-year quarter was said to be driven by lower shipments across nearly all categories, partially offset by increased prices.

Segment operating income is expected to be in the range of $102.0 million to $106.0 million.

Adjusted EBITDA is expected to be in the range of $108.5 million to $112.5 million. The decrease relative to the prior-year quarter was said to be driven by lower volume, increased input costs in powder and copper and increased SG&A partially offset by increased price.

“The Kinetic Group delivered a strong start to the year, reporting sales in line with expectations and profitability ahead of expectations,” said Jason Vanderbrink, co-CEO of Vista Outdoor and CEO of The Kinetic Group. “The team continues to navigate a dynamic environment, including a global powder shortage, increasing input costs, including for copper and powder, and competitive market pricing, with a continued focus on execution and delivering on our financial expectations.

“As our history shows from TKG, we are laser-focused on operational excellence and never resting on our laurels in every aspect of our business. As we enter the election season, we are focused on controlling matters we can control and continuing to drive value for our stockholders and other stakeholders. As we continue FY25, the company has, without question, the most innovative product launch coming in our long history of game-changing technologies,” concluded Vanderbring.

Reaffirming Guidance

Vista Outdoor is reaffirming its guidance for Fiscal Year 2025 for Vista Outdoor, The Kinetic Group and Revelyst.

The company expects the following results for Fiscal Year 2025 ended March 31, 2025, among other guidance previously disclosed:

  • Sales in the range of $2.665 billion to $2.775 billion;
  • The Kinetic Group sales to be approximately $1.425 billion to $1.475 billion;
  • Revelyst sales to be approximately $1.240 billion to $1.300 billion;
  • Adjusted EBITDA in the range of $410 million to $490 million;
  • The Kinetic Group’s adjusted EBITDA to be approximately $350 million to $400 million; and
  • Revelyst adjusted EBITDA expected to be approximately $130 million to $160 million

Vista Outdoor expects that Revelyst will pursue a 12-month $50 million share repurchase program following the closing of the CSG Transaction, subject to approval by the Revelyst Board of Directors.

“Our balance sheet remains strong, with our net debt decreasing by $81 million during the quarter to $579 million,” said Andrew Keegan, CFO of Vista Outdoor. “At Revelyst, we have been sharply focused on reducing inventory levels, and I am pleased with the progress our team has made, which has resulted in an approximately $100 million inventory reduction from the year prior and nearly $10 million sequentially from the prior quarter. These efforts continue to drive down our debt levels and contribute to maintaining our healthy balance sheet. At The Kinetic Group, the team remains steadfast on achieving our financial expectations while continuing to face competitive pricing and input cost headwinds, especially for copper and powder.”

Keegan continued, “Looking forward, we expect to see increased sales and EBITDA momentum in the quarters ahead at Revelyst as a result of new and exciting product launches, cross collaborations and improvements in our channel strategy. We have also seen tremendous progress with our Gear Up transformation program, which contributed $5 million in realized cost savings in Q1 FY2025, providing a clear path to $25 million to $30 million of cost savings in FY2025. This progress gives us confidence in our expectation to double Revelyst’s standalone adjusted EBITDA during the year.”

Image courtesy Vista Outdoor/Simms