Vista Outdoor sees Q2 sales and profit drop
Vista Outdoor, which recently announced the sale of its Sporting Products Division for $1.91 billion, has announced second quarter figures down in both sales revenue and profit.
Sales fell $105 million to $677 million, down 13%, driven by lower shipments and lower volumes in Sporting Products as customers continued to be cautious due to inventory levels. Short term pressures on Outdoor Products were also a factor.
Gross profit declined 21% to $209 million due mainly to lower volumes and prices in Sporting Products. Net income dropped 53% to $44 million.
Outdoor Products, which was recently renamed Revelyst and which includes Simms Fishing Products, saw sales drop 6% to $327 million, in line with a recent earnings release, while operating income fell 57% to $13 million.
“The Vista Outdoor story that’s now unfolding is the most compelling in company history for stockholders and consumers alike,” said Gary McArthur, interim CEO. “It is our continued belief that the separation of the two segments will unlock significant stockholder value.”
In revealing its second quarter figures, Vista also launched its new GEAR Up transformation programme that is being actioned immediately to simplify the company’s business model and deliver increased efficiency and profitability.
“This will enable us to reinvest in our highest potential brands to accelerate their growth and product development pipelines,” said Revelyst CEO Eric Nyman.
Revelyst anticipates growth will come through product innovation and by streamlining its operations to make cost savings, estimating $100 million in annual cost savings by 2027.
“We are seeking to double Revelyst’s standalone adjusted EBITDA in fiscal year 2025 as compared to 2024,” said the company.
Outdoor Products sales for 2024 are expected in to be in the region of $1.275 billion to $1.325 billion.