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Vista Outdoor posts double-digit growth in 2017 fiscal Q2

Published November 10, 2016
Results bolstered by acquisitions.

FARMINGTON, Utah (BRAIN) – Vista Outdoor, parent of Camelbak, Giro, Bell, Bushnell and other brands, posted sales of $684 million for the second quarter of its fiscal 2017. That's up 24 percent from the prior-year quarter. The results included $106 million from recent acquisitions. On an organic basis, sales were up 5 percent for the quarter.

Vista Outdoor CEO Mark DeYoung said the strong results were thanks to acquisitions and strong performance in its shooting sports segment. But both outdoor and shooting sports delivered organic sales growth for the quarter.

Vista Outdoor acquired Camp Chef during the quarter, which provides the company a foothold in the camping market with an outdoor cooking brand.

Gross profit was $185 million, up 24 percent from the prior-year quarter. This includes $32 million of gross profit from acquisitions; organic gross profit was up 3 percent. Operating expenses were $81 million compared to $88 million a year ago, the decrease reflects an acquisition claim settlement gain related to the purchase of Bushnell.

The company repurchased approximately 1,074,000 shares for $44 million. Since Oct. 2, Vista has repurchased about 724,000 additional shares for $28 million.

DeYoung said Vista Outdoor continues to see positive Point of Sale data trends in the face of a continuing softness at retail. And he expects the soft retail environment to continue for the balance of the year.

"Some retail consolidation in the outdoor recreational market has caused ripples and waves by retailers and wholesalers," DeYoung told investors during an earnings call Thursday. "They're just cautious. The retail environment in general is sluggish and has been slow. Consumer spending has been slow for a while and retail is impacted by that. We thought we'd see a stronger back half because we get into holiday and hunting season. We still believe that."

The company reaffirmed its fiscal guidance for the year, with estimated sales ranging from $2.72 to $2.78 billion.

Topics associated with this article: Earnings/Financial Reports

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