Vista Outdoor, which includes brands such as Bell, Giro, Camelbak, Camp Chef and Bushnell Golf, saw its stock rise by 8 percent after posting strong results for the second fiscal quarter ended Sep. 27. It also released a positive outlook for the next quarter.
Sales surged by 29 percent to $575 million, as e-commerce revenues doubled, representing about 20 percent of turnover. Net income reached $79.6 million, against a loss of $11.9 million last year, lifted by a $16.1 million income tax reduction under provisions of the CARES Act.
The Outdoor Products division of the group recorded a 35 percent gain in sales to $195 million, with direct-to-consumer sales progressing across all brands. The company is seeing growing interest in outdoor activities. Golf rangefinders, outdoor cooking products, bike and motorcycle protective and accessories all proved popular. However, supply chain disruptions from the pandemic hampered Camelbak sales, causing a shortage of inventory.
The division’s gross margin inched up by 0.8 percentage points from the year-ago quarter to 29.0 percent, thanks to improvements in mix and increases in the e-commerce channel across all brands. The EBIT margin climbed by 6.0 percentage points to 13.5 percent.
In the shooting sports division, sales increased by 26 percent to $380 million, driven by continued strong consumer demand as a result of the resurgence in outdoor recreation activities and demand for personal protection.
Based on these results, and on the fact that the fiscal third quarter will benefit from the addition of the newly-acquired Remington ammunition business, revenues for the quarter are expected to reach $510 to $530 million.