Vista Outdoor has reported a 4 percent increase to $45.1 million for Camelbak and Camp Chef in its third quarter ended on Dec. 29, thanks to good sales during the Christmas shopping period. The launch of 16 new websites for these and other brands in its Outdoor Products division, including Bushnell, Primos and Tactical Direct, helped to boost its nascent consumer-direct business, especially in product segments that are not getting adequate shelf space in multi-brand stores.
The total revenues of the Outdoor Products division went down by 2 percent to $222.5 million in the quarter, and its gross margin rose by 1.28 percentage points to 25 percent. Sales declined at a faster rate of 15 percent to $202 million in the Shooting Sports division, but they were up by 2 percent excluding the divested Savage Arms business, showing the first growth in 11 quarters for the remaining ammunition operations.
Vista’s total revenues showed a decline of 9 percent to $424.8 million in the quarter, but they were slightly positive excluding the divested firearms business. The group’s quarterly net income of $14.6 million compared with a big loss of $514.6 million in the year-earlier period, which came after major impairment charges.
On an adjusted basis, the group’s net earnings were up sharply to $12.4 million from $5.3 million, and the management is predicting a net profit of around $10.1 million for the full financial year on revenues of between $1.75 billion and $1.80 billion.
The stock market responded favorably to the apparent progress by sending up the value of Vista’ shares by more 15 percent, but they retreated slightly soon after.