The acquisitions of Camelbak and Jimmy Styks pushed up sales of the Vista Outdoor group for the second quarter of its fiscal year. The group's turnover increased by 5.0 percent to $551.4 million for the three months until Oct. 4, with $24 million of added sales from the two buys. The company said that sequential organic growth reached 2.4 percent.
Mark de Young, the company's chairman and chief executive, said in a statement that the integration of the hydration and stand-up paddling specialists was progressing well. He added that the performance of the group's outdoor products division, including the Bollé and Bushnell brands, was in line with expectations. Their product development is robust, De Young said, with plans to launch several new products to the trade early next year.
Sales in the outdoor products division reached $213 million, which was an increase of 16.9 percent with organic growth of 3.5 percent compared with the second quarter last year. The company's outdoor division was strongest in optics, golf and shooting accessories, while it faced more pressure in tactical products, archery and hunting accessories, and from currency exchange rates.
The company pointed to an organic decline of 2.2 percent in gross profit for the outdoor products division due to inventory-related charges and a lower-margin product mix, which was mitigated by the increase in sales. The division's gross profit reached $57 million, amounting to a gross margin of 26.8 percent, almost stable compared with the same quarter last year.
The company added that it raised firearms sales while the market appeared to stabilize in other parts of its shooting sports business. The entire shooting sports division saw its sales dip by 1.3 percent to $338 million, but its gross profit jumped by 15.6 percent on the back of improved product mix and cheaper material costs.
The Vista Outdoor group's gross profit reached $149 million for the quarter, up by 16 percent, with a contribution of $9 million from the acquisitions. Operating expenses jumped to $88 million, up from $69 million, due to the added costs of the acquisitions, investments in research and marketing, and stock-based compensation.
Vista Outdoor's operating profit was up by 2.3 percent to $60.7 million as reported and by 5.8 percent to $70.2 million on an adjusted basis, removing the impact of acquisition costs and several other one-off factors. The company's net income reached $32.7 million, down by 3.2 percent compared with the same quarter last year but on an adjusted basis the net income increased by 4.0 percent to $39.6 million.
The company reaffirmed its outlook for the full fiscal year, which calls for sales in the range of $2.17 to $2.24 billion and adjusted earnings per share in a range of $2.05 to $2.30.