Minnesota-based Vista Outdoor raised its guidance for its fiscal year ending this March after reporting record results in the third quarter ended Dec. 26 amid continued high consumer demand for sporting and outdoor products.

Vista Outdoor is now projecting fiscal year 2022 sales of $2.97 billion to $3.0 billion, representing approximately 35 percent growth compared to the year-earlier and up from previous guidance of $2.9 billion to $2.95 billion. It also anticipates adjusted earnings per share of $8.00 to $8.10 against an earlier forecast of $7.70 to $8.00 while still continuing to guide for an adjusted Ebitda margin of 24 to 24.5 percent.

In the three months to Dec. 26, sales at Vista Outdoor jumped by 38 percent to reach a record $795 million, as gross profit rose by 72 percent to $281 million and the gross profit margin jumped by 7.02 percentage points to 35 percent. Adjusted Ebitda grew to $166 million from $73 million, with the adjusted Ebit margin expanding by 8.18 percentage points to 21 percent. Net profit climbed to $118 million from $79 million, and adjusted EPS gained 104 percent to $2.10.

“The power of our brands, combined with our continuous introduction of innovative new products and lean cost structure, has allowed us to offset cost increases through targeted pricing action while absorbing some costs through operational efficiencies to maintain profitable growth across our portfolio,” said Chris Metz, CEO.

During the quarter, Vista Outdoor realigned its reportable segments in a move it said would better reflect how businesses are managed and provide greater visibility into their financial performance. All business units rely mainly on third-party manufacturing, including its old Hunting and Shooting operating segment, which has been renamed Outdoor Accessories and included in the Outdoor Products reportable segment. The Ammunition operating segment is now present in its own reportable segment, renamed Sporting Products.

Sales in the Sporting Products segment rose by 60 percent to $460 million, driven by both organic growth from brands including Remington and growth from its Hevi-Shot acquisition in the prior year. Gross profit soared 123 percent to $178 million, with margin expansion driven by improved pricing, volume and mix combined with operating leverage supported by higher volume and operating efficiencies. Segment Ebit surged 184 percent to $150 million.

Sales in the Outdoor Products segment, which includes Bell Helmets, Bushnell Golf, Foresight Sport and Giro brands as well as Camp Chef outdoor cooking items, increased by 17 percent to $335 million. Double-digit sales gains were posted in Outdoor Recreation and Action Sports alongside growth in Outdoor Accessories.

Gross profit for the segment increased by 25 percent to $105 million, primarily due to acquisitions of higher-margin brands, including Foresight Sports and QuietKat, and organic growth, partially offset by higher logistics and input costs as well as sales channel mix. Ebit climbed by 10 percent to $42 million, mainly as a result of the Foresight Sports acquisition, partially offset by selling and marketing expenses, in part due to the return of external customer events like trade shows.