Slowing consumer demand for outdoor products contributed to a decline in Vista Outdoor earnings for their second quarter.
As a result, the Anoka-based company lowered its financial outlook for the remainder of the year.
Vista earned $1.62 a share, down 31% from the year-ago period, while sales increased to $782 million during the quarter.
"We posted another solid quarter despite the external challenges we've been navigating over the last year," said Chris Metz, chief executive of Vista Outdoor in the company's earnings call. "Through our strategic transformation over the last five years, we have built a resilient company that can thrive in all economic cycles."
Company officials cited declining consumer demand, especially in their mass market outdoor accessories products, due to inflation and high interest rates in adjusting their full-year guidance downward for 2023.
Vista Outdoor reduced the high and low end of the revenue range from first quarter's outlook by 4.7% and 5.3%, respectively. The company now expects full-year adjusted earnings-per-share in the range of $6 to $6.50, down from $7.05 to $7.65.
Despite the downgrade, Metz told analysts and investors that Vista Outdoor is much healthier company than it was pre-pandemic, which was aided by eight acquisitions in recent years and a portfolio of 41 outdoor brands, including a dozen that generate at least $100 million in annual revenue.
The company's sporting products segment — which includes ammunition brands Federal, Remington, Speer and others — posted revenue of $432 million, down 4% from the year-ago quarter.
During the second quarter, which ended Sept. 25, the company closed on its two most recent acquisitions for outdoor apparel companies: Fox Racing and Simms Fishing Products.
They're part of the outdoor products segments that includes 32 different brands including golf simulator company Foresight Sports; golf and shooting optics company Bushnell; outdoor cooking products company Camp Chef; Bell and Giro bicycle helmets; and CamelBak hydration products.
Sales in the outdoor products segment were $349 million, up 6% from the year ago quarter due to the recent acquisitions of Fox, Simms, Foresight Sports and outdoor gear and clothing company Stone Glacier.
In May, Vista Outdoor announced it was splitting its company in two: its ammunitions segment, which will remain in Anoka, and the outdoor products group.
The outdoors company will be led by Metz and headquartered in Bozeman, Mont.
Metz noted on the call the spin-off passed its first major milestone related to SEC filings. A public version of a form detailing more information on the reasons for the spinoff and resulting pro-forma financial documents should be filed soon.
Metz said Vista will be focused more on internal affairs and less on additional acquisitions leading up to the spin-off, which is still scheduled to be completed in 2023.
"Our focus is unlocking value through the separation and supporting our current brands in their connection with consumers and as they navigate the challenging global environment," Metz said in an email.
Vista Outdoor reported final quarterly results after the market on Wednesday. Its stock was trading down 8% midday Thursday. Shares have ranged between $23.80 and $52.69 over the last 52 weeks.
Two weeks ago, Vista Outdoor announced chief financial officer Sudhanshu Priyadarshi would be leaving the company after the official results were released to become CFO of beverage company Keurig Dr. Pepper.
