Sales for the year have been up overall for the newly public gun and ammo company Vista Outdoor Inc., but they’re down for the fourth quarter, according to yesterday’s filing with the Securities and Exchange Commission.
Sales for fiscal year 2015 were $2.08 billion, up 11 percent from the prior year, but down 14 percent from the prior-year quarter with sales at $485 million.
“The company delivered results for the full year and the fourth quarter in line with our expectations and reflective of continued softness in the shooting sports market,” said Mark DeYoung, company chair and chief executive officer, in press materials.
The company also reported a considerable drop in net income for the year and quarter — a difference of $53.7 million for the year and $32 million for the quarter. However, the DeYoung said the difference is reflective of costs becoming a standalone company.
“Our financial results also reflect the spin-off of Vista Outdoor from ATK, incremental standalone company costs, stock-based compensation charges, and transaction-related expenses,” he said.
Vista Outdoor was the sporting arm of Alliant Techsystems, but branched off completely in February, making the fourth quarter Vista’s first alone. In all, Vista Outdoor’s portfolio includes 23 outdoor companies, seven ammo companies, and one gun company. It’s the hub for brands like Federal Premium, Bushnell Optics, Savage Rifles, Blackhawk!, Uncle Mike’s Holsters, just to name a few.
The strategy for the new fiscal year includes keeping focus on new products, which DeYoung credits for consistent and quality sales figures.
“In the fourth quarter, Vista Outdoor received industry recognition and strong orders for several new products launched during the winter trade show season,” DeYoung said, naming the Bushnell Tour X golf laser rangefinder, the Savage Arms A17 semiautomatic rifle, and Federal Premium 3rd Degree ammunition.
Vista Outdoor’s chief financial officer, Stephen Nolan, said the company is expecting similar overall results next quarter since last year’s first quarter was historically high.
“We expect to return to growth late in FY16, resulting in low single-digit growth for the full fiscal year, notwithstanding significant headwinds related to effects from foreign exchange translation,” Nolan said.
Yesterday, Vista Outdoor end of day stock report showed company shares down 46 cents, but made up for the loss during trading today.