Wed, May 29, 8:10 PM (145 days ago)
Vista Outdoor Inc. reported a decrease in net sales of $333.7 million for the fiscal year ended March 31, 2024, primarily due to lower volumes and pricing in The Kinetic Group segment, which saw a 25.7% drop in gross profit. The Revelyst segments also experienced declines due to high inflation and interest rates affecting consumer demand. The company recorded significant impairment losses totaling $218.8 million, impacting goodwill and intangible assets, mainly within the former Revelyst segment. Operating income decreased by 53.2% to $50.5 million, with The Kinetic Group contributing significantly despite a decline. The Revelyst segments combined reported a 54.2% drop in operating income. The company initiated the GEAR Up transformation program aimed at achieving $100 million in annualized pre-tax operating profit improvements by fiscal year 2027. Vista Outdoor's liquidity remains strong, with $60.3 million in cash and a focus on debt reduction, paying down $340 million in fiscal year 2024. The company entered an agreement to sell The Kinetic Group for $1.96 billion, a strategic move expected to close in 2024, subject to regulatory approvals and stockholder consent.