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MN – INDUSTRY INSIDER – Anoka-based Vista Outdoor had big quarter; Remington purchase should help future results

Vista Outdoor continued to benefit from people’s renewed interest in outdoor activities as a relief from COVID-19 restrictions. But strategic decisions and investments made before the pandemic laid the groundwork for additional success. And its acquisition of Remington’s ammunition brands should add positively to results in future quarters. For the quarter ended Sept. 30, Vista earned $79.6 million, or $1.34 per share. Last year’s second quarters saw a loss of $12 million, or 21 cents a share. Sales were $575 million, a 30% increase over the same period last year. Adjusted EPS was $1.10 a share, better than analysts’ expectation of 64 cents per share. Revenue for the quarter exceeded expectations by 14%. When Chris Metz was named CEO in 2017 one of his priorities was to enhance the e-commerce platform of its various brands in its shooting sports and outdoor products segments. Those investments paid dividends as its e-commerce business doubled in the second quarter. “The ability to serve consumers directly in today’s climate has helped address shortages at retail and help drive consumers to Vista’s outdoor e-commerce sites,” Metz told analysts on the company’s earnings call. Sales were $1 billion from the first two quarters of their fiscal year 2021 with 22% of sales coming from Vista’s e-commerce platforms. “Our focus on e-commerce was well timed and well executed as this channel grew more than 100% during the quarter,” said Sudhanshu Priyadarshi, Vista’s new chief financial officer who joined the company in April, in the company’s earnings release. Another priority of Metz was to reduce the company’s debt, and by doing so was in position to purchase Remington’s ammunition brands plus one of the company’s manufacturing plants in Arkansas. The deal, announced during the second quarter, closed in October. The company paid $81 million for the assets in a mix of cash and credit.  [full article]

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