Revelyst, Inc., a wholly owned subsidiary of Vista Outdoor, reported its financial performance for the three and six months ended September 30, 2024, revealing significant changes compared to the previous fiscal period. Total net sales for the three months decreased by $17.8 million, or 5.4%, to $315.0 million, primarily due to volume declines in the Revelyst Adventure Sports segment, divestitures of the RCBS and Fiber Energy brands, and reduced sales at Simms Fishing. For the six months, net sales fell by $65.1 million, or 9.9%, to $589.2 million.

Despite the decline in sales, Revelyst reported an increase in operating income for the three months, rising to $4.3 million from a loss of $4.8 million in the prior year, driven by a $4.5 million increase in gross profit and improved inventory management. For the six months, operating income also improved to $3.6 million from a loss of $10.1 million. Gross profit for the three months was $98.3 million, up from $93.8 million, while for the six months, it decreased to $179.7 million from $188.5 million.

The company undertook strategic initiatives, including the GEAR Up transformation program, which is expected to yield annualized pre-tax operating profit improvements of approximately $100 million. The program contributed $11.6 million in cost savings during the six months ended September 30, 2024. Revelyst also completed the divestiture of its wood pellet manufacturing company, Fiber Energy Products, resulting in a pre-tax loss of $872,000.

As of September 30, 2024, Revelyst's total current assets were $529.6 million, down from $557.4 million as of March 31, 2024. Total assets decreased to $1.5 billion from $1.6 billion, while total liabilities slightly decreased to $334.8 million. The parent company investment also declined to $1.2 billion from $1.2 billion.

In terms of segment performance, Revelyst Outdoor Performance reported net sales of $100.6 million for the three months, a decrease of 10.8%, while the Adventure Sports segment saw a 5.5% decline to $159.5 million. Conversely, the Precision Sports Technology segment experienced a 7.0% increase in sales to $54.9 million.

The company is currently navigating a series of merger agreements and amendments, including a proposed sale of The Kinetic Group business and ongoing strategic reviews to explore alternatives for the Revelyst Business. The enterprise value of the Sporting Products Sale is set at $1.9 million, subject to adjustments.