ANOKA, Minn. (BRAIN) — Vista Outdoor reports that its sales grew 21% in its fiscal first quarter, mostly due to a double-digit sales increase in its Sporting Products division, which includes its ammunition brands. In its Outdoor Products division, which includes the bike-related brands Bell, Giro, Blackburn, CamelBak, Fox Racing, and QuietKat, sales were down 2% in the quarter, which ended June 26. Vista announced July 6 it was buying Fox Racing, so its sales were not included in this quarter's report.
Overall, sales were $803 Million, and the company updated its full fiscal year guidance to $3.3 billion with a 20% EBIT margin and 21% EBITDA margin.
"There is no doubt that companies are operating in a tough environment with rising inflation and supply chain challenges," said Chris Metz, Chief Executive Officer. "Despite that, we posted a great first quarter and we've taken these impacts into account in our fiscal year guidance."
Metz noted that the company is moving forward with plans to separate its Sporting Products and Outdoor Product segments into two independent companies.
"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. 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," he said.
Metz will lead the Outdoor Products company, which has yet to be named. That company will be based in Bozeman, Montana.
In the Outdoor Products segment for the first quarter, sales were $292 million, down 2%. The company said the decline was driven by Outdoor Accessories and partially offset by growth in Outdoor Recreation. All the bike-related brands are in the Outdoor Recreation subgroup; the Outdoor Accessories subgroup includes hunting accessories brands and the Bushnell optics and rangefinder brand, and others.
Gross profit in the Outdoor Products segment was flat at $93 million.
