SALT LAKE CITY (BRAIN) — Vista Outdoor saw sales increase to $630 million in its second quarter, as revenue from its new acquisitions of Bell, Giro, Jimmy Styks and CamelBak kicked in. Organic sales from its businesses prior to those acquisitions were down 4 percent and earnings were down 14 percent to $29.1 million.
The company remains on a growth strategy, said Vista Outdoor chairman and CEO Mark DeYoung. "Early in the quarter, Vista Outdoor completed the acquisition of Action Sports, which has enhanced our market offerings in cycling, snow sports and powersports, and the integration is on track. Including recent acquisitions, both sales and gross profit increased 23 percent over the prior-year period. We, like other consumer products companies, experienced a soft retail environment in the first quarter. Additionally, we were impacted by a shift in consumer spending from accessories to firearms platforms outside our portfolio, and the timing of international orders from the first quarter to later in our fiscal year. We expect a recovery in the second half of the fiscal year due to sell through of new products, increased international sales, the continued improvement in the retail environment and seasonal upside in the shooting sports market."
Also during the quarter, the company repurchased approximately 462,000 shares for $22 million.
"With expected improved performance in the second half of the year, the company reaffirms its financial guidance in fiscal year 2017, as we anticipate an improved retail landscape and a return to spending on hunting and shooting accessories to complement the growing firearms installed base," said Vista Outdoor CFO Stephen Nolan. "We will also continue to leverage the strength of our portfolio, including new capabilities and talent from recent acquisitions, to improve performance and achieve execution excellence."
The company is forecasting full year sales of $2.72 billion to $2.78 billion.
