Vista Outdoor Inc. has recently released its 10-Q report, providing a detailed look at its financial performance. The company operates through four reportable segments: The Kinetic Group, Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology. The Kinetic Group primarily focuses on ammunition brands, while Revelyst Outdoor Performance includes outdoor cooking, fishing, and technical gear and apparel brands. Revelyst Adventure Sports offers protective gear and apparel, footwear, and e-mobility products, while Revelyst Precision Sports Technology focuses on golf technology brands.
In the three months ended June 30, 2024, Vista Outdoor reported a decrease in net sales by $49,152 compared to the prior year quarter. The Kinetic Group saw a decrease in sales due to lower volume across various categories, resulting in a 1.6% decrease in gross profit. The Revelyst segments reported a combined decrease in operating income primarily due to lower wholesale volume and order timing within Revelyst Outdoor Performance, as well as lower volume from strong new product introductions in the prior year for Bushnell Golf and order timing within Revelyst Precision Sports Technology.
Despite the challenges, Vista Outdoor maintained a strong balance sheet with a focus on debt paydown. Cash provided by operating activities during the three months ended June 30, 2024, was $53,765. The company also saw a decrease in outstanding borrowings under its 2022 ABL Revolving Credit Facility, reducing its total debt to $635,000. Additionally, Vista Outdoor successfully decreased its total debt as a percentage of total capitalization to 34.9% as of June 30, 2024, compared to 39.0% as of March 31, 2024.
During fiscal year 2024, Vista Outdoor initiated the GEAR Up transformation program, an efficiency and cost savings initiative aimed at accelerating growth and transformation within its reportable segments. The program contributed $5,000 in cost savings during the first fiscal quarter of 2025, with an expected $25,000 to $30,000 of savings in Fiscal Year 2025 and an estimated $100,000 of run rate cost savings by fiscal year 2027.
Furthermore, Vista Outdoor announced the sale of The Kinetic Group business and a planned separation, as well as the review of strategic alternatives. The company entered into a definitive agreement to sell The Kinetic Group business to CZECHOSLOVAK GROUP a.s. for an enterprise value of $1,960,000. Additionally, Vista Outdoor will separate its Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology segments from The Kinetic Group business, marking a significant strategic move for the company.
Today the company's shares have moved 0.1% to a price of $38.65. If you want to know more, read the company's complete 10-Q report here.
