Vista Outdoor reported another record set of results for the third quarter, after a better-than-expected second quarter, led by ammunition sales and revenues from the recently-acquired Remington business.
The U.S.-based manufacturer of ammunition and outdoor sports products said that sales surged by 35 percent in the three months ended Dec. 27, 2020, with outdoor products sales rising by 24 percent from the year-ago quarter to $173 million. This was driven by strong consumer demand resulting from the resurgence in outdoor recreation activities and higher online sales across all brands, including Bell, Giro, Camelbak, Camp Chef and Bushnell Golf. The management said that the strong outdoor participation trends that began in the early days of Covid-19 lockdowns have continued into fiscal 2021 and do not appear to be slowing down.
The segment’s gross margin progressed by 2.2 percentage points to 29 percent, due to improvements in mix and increases in the e-commerce channel. The Ebit margin jumped by 4.4 percentage points to 11 percent.
There was also a 41 percent growth in its shooting sports division to $402 million, which the company attributed to concerns about civil unrest in the tense political context surrounding the end of Donald Trump’s term. The company said that the integration of the Remington brand is ahead of schedule and delivered a better-than-expected performance in the quarter. The company announced it has just completed the acquisition of Hevi-Shot Ammunition.
Overall, the gross margin surged by 7.5 percentage points to 28.3 percent, and net income reached $78.9 million, against a net income of $14.6 million last year.
Based on these results, revenues for the fourth quarter are expected to reach between $510 and $530 million.
