Vista Outdoor has reported its financial results for the first quarter of the fiscal year 2023 (FY23).
For the three months ended 26th June 2022 versus the three months ended 27th June 2021, sales increased 21% to $803 million driven by strong double-digit growth in sporting products, said the company, partially offset by a 2% decline in Outdoor Products primarily driven by Outdoor Accessories.
Gross profit rose 22%to $293 million and gross profit margin improved by 15 basis points to 37%.
Operating expenses were $121 million, up nearly 24%, primarily driven by acquisitions. Earnings before interest and taxes (EBIT) increased 20% to $172 million.
Chris Metz, chief executive officer, said: “There is no doubt that companies are operating in a tough environment with rising inflation and supply chain challenges.
“Despite that, we posted a great first quarter and we’ve taken these impacts into account in our fiscal year guidance. We have built a nimble culture and have empowered our brands to make the best decisions for their businesses and consumers. We have also maintained an optimized and lean cost structure to allow us to succeed in a variety of economic and operational environments and have action plans to further control costs if necessary.
“Our strong first quarter results reflect these collective efforts, continued strength in outdoor participation levels, and our financial discipline in making the most optimal investments to drive long-term growth and unlock shareholder value.”
Vista Outdoor has also announced the acquisition of Simms Fishing Products for a purchase price of $192.5 million. This follows the announcement earlier this month that it will acquire California-based Fox Racing for $540 million.
Metz continued: “I am very proud of the work our teams have accomplished in the first quarter and equally excited to welcome Simms Fishing and Fox Racing, both strategic acquisitions and iconic brands that are highly complementary to our Outdoor Products portfolio. I am also confident in our future as we prepare to separate our Sporting Products and Outdoor Products segments into two independent, publicly-traded companies.”
The company announced plans to separate its Outdoor Products and Sporting Products segments into two independent, publicly-traded companies earlier this year, with the Outdoor Products segment including brands CamelBak, Bell, Giro, Camp Chef, Bushnell, Bushnell Golf, Foresight Sports, Stone Glacier and QuietKat.
“Following the separation, each company will have size, scale, leading brands and a capital structure that will allow it to be successful and further unlock shareholder value,” said Metz. “Upon the successful close of the Fox and Simms acquisitions, our Outdoor Products business will be one of the largest companies in the outdoor products space in terms of annual sales, housing nine power brands with more than $100 million in annual sales each. Equally as exciting is our Sporting Products business, which just posted another record sales quarter.
“Sporting Products’ continued success is demonstrating that new participants in shooting sports have created a new, elevated base of demand that will allow that business to generate solid cash flow and returns for its shareholders for years to come. Our future is bright, our business fundamentals remain strong, and we have highly talented teams to effectively navigate through the current environment.”