Vista Outdoor reported a 23 percent sales increase to $630 million in its second quarter ended July 3, boosted by its new acquisitions of Bell, Giro, Jimmy Styks and CamelBak over the past year. The figure includes $134 million from recent acquisitions. On an organic basis prior to those acquisitions, sales were down by 4 percent.
During the quarter, Vista Outdoor completed the additional acquisition of Action Sports, which allows it to expand its offerings in cycling, snow sports and powersports. Also during the quarter, the company repurchased around 462,000 shares for $22 million.
Organically, the company's sales rose in the quarter by 3 percent in the shooting sports segment but fell by 16 percent in the outdoor segment, pulled down by retail bankruptcies in the U.S. and market share decreases in the optics sector, which comprises Bushnell and other brands.
The quarterly gross margin rose by 0.2 percentage points to 27.2 percent, but net earnings dropped by 14.1 percent to $29.1 million, missing financial analysts' estimates. The net result included acquisition charges of $2.4 million, up from $420,000 in the year-ago period.
Expecting improved performance in the second half of the year, the company has reaffirmed its financial guidance for the current financial year, forecasting sales for the full year in the range of $2.72 billion to $2.78 billion.
Meanwhile, Vista has announced a new stock repurchase program for up to $100 million worth of its shares, valid until the end of 2018. The company recently completed a previously approved $200 million share repurchase program. Alternative investment opportunities and other factors will help determine the timing, number and value of the shares that will be repurchased.
Also, Vista has inaugurated its new corporate headquarters in Farmington, Utah. The official opening took place on Aug. 9, with a ribbon-cutting ceremony in the presence of state and local authorities. The new 33,000-square-foot facility, which currently houses a staff of around 70, has been designed by a Salt Lake-based studio to pay tribute to the Vista's mission of “Bringing the World Outside,” incorporating the outdoor spirit into the building design itself.
The atrium of the main lobby features a “living wall” made with live plants as well as a central staircase with a view of the Wasatch Mountains. The back lobby features a fireplace and campsite where employees can get together. Seven outdoor-themed “huddle rooms” spread throughout the building are also meant to provide employees with spaces to gather and collaborate. Employees can benefit from a secured bike storage area and showers, which the company has installed in the facility to persuade them to cycle to work. The building also has water refilling stations that are meant to encourage employees to use CamelBak water bottles instead of disposable plastic bottles. Vista acquired CamelBak in August 2015.
Many design elements of the new building have been made with locally sourced natural materials such as wood and stone. Furthermore, the building uses LED lighting and a variant refrigerant flow (VRF) heating and cooling system to reduce energy comsumption.
Vista has also published an updated corporate social responsibility (CSR) website to share the company's efforts in the areas of conservation, safety, community service, and diversity and inclusion.