ANOKA, Minn. (BRAIN) — Sales in Vista Outdoor's Revelyst business unit — formerly its Outdoor Products segment — decreased 10% in the company's fiscal third quarter, which ended Dec. 24. Revelyst contains bike industry brands Giro, Bell, Fox Racing, QuietKat and others.
Revelyst's quarterly sales were $317 million. The company said the decrease from the same period last year was due to "increased discounting, lower volume, and unfavorable mix as consumers are pressured by high interest rates and other short-term factors affecting their purchases of consumer durable goods."
The unit's gross profit decreased 17% to $85 million. Gross margin decreased 228 basis points to 26.7%. Adjusted EBITDA decreased 53% to $15 million. Adjusted EBITDA margins decreased 416 basis points to 4.6 percent.
Vista Outdoor will hold an investor conference call Thursday morning that BRAIN will monitor for more details.
"Over the last few months, Revelyst's culture of innovation drove exciting new product introductions at the brand level, secured incremental revenue opportunities for the segment and led to the successful launch of our Revelyst Lyst, which brought products directly to consumers at the enterprise level," said Eric Nyman, CEO of Revelyst and co-CEO of Vista Outdoor, in a press release Wednesday.
"I'm also proud to say we are on track and making progress with GEAR Up, our transformation program designed to simplify our business model, deliver increased efficiency in the form of new run-rate profitability improvements and drive organic growth through innovation. This initiative is helping us to shape a culture of innovation and collaboration while also strengthening our operating model."
Company-wide, Vista Outdoor's sales also decreased 10%, to $682 million.
The company said it expects full fiscal year sales to be in the range of $2.725 billion to $2.825 billion for the full company, with Revelyst sales expected to be approximately $1.275 billion to $1.325 billion.
