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.
Revenue for the company's shooting-sports segment rose 26% to $380 million in the second quarter, and the addition of Remington is expected to add an additional $200 million in annual revenue going forward.
"The Remington brand is one of America's best known and oldest ammunition brands with a rich heritage and passionate and loyal customer base," Metz told analysts. "We are thrilled with this highly synergistic acquisition, which includes ammunition and accessory assets."
The company's outdoor-products segment — which includes Bell and Giro bicycle helmets, Camp Chef outdoor cooking products and CamelBak hydration products — grew 35% in their second quarter to $195 million.
Vista updated its guidance to include the addition of Remington. The company expects third-quarter revenue to be in the range of $510 million to $530 million and EPS in the range of 55 to 65 cents per share.
Shares of Vista closed Thursday at $22.04, up 7.5%. Since the start of 2020 Vista's shares have increased 175%.