Vista Outdoor Inc. reported its financial results for the three and six months ended September 30, 2024, revealing a decline in net sales and profitability compared to the previous fiscal period. For the three months, net sales totaled $665.9 million, a decrease of 1.6% from $676.8 million in the same period of 2023. For the six months, net sales were $1.31 billion, down 4.4% from $1.37 billion year-over-year. The decline in sales was attributed to volume decreases and divestitures, particularly within the Revelyst segments, which include Outdoor Performance, Adventure Sports, and Precision Sports Technology.

Gross profit for the three months increased slightly to $211.4 million from $208.9 million, while for the six months, it decreased to $422.6 million from $435.6 million. Operating income for the three months fell to $65.7 million from $75.8 million, and for the six months, it decreased to $146.8 million from $168.0 million. Net income for the three months was $41.8 million, down from $44.4 million, and for the six months, it was $98.9 million compared to $102.5 million in the prior year.

The Kinetic Group segment, which focuses on ammunition products, reported a slight sales increase of 0.5% for the three months, but a 0.6% decrease for the six months. Operating income for this segment decreased due to higher input costs and increased incentive compensation. Conversely, Revelyst segments experienced a 3.9% sales decline, although operating income improved significantly due to better inventory management and cost reductions.

Strategically, Vista Outdoor is undergoing a transformation with its GEAR Up initiative aimed at enhancing efficiency and cost savings across its segments. The company incurred pre-tax restructuring costs of $12.3 million during the six months ended September 30, 2024, as part of this initiative. Additionally, Vista Outdoor is in the process of separating its Revelyst business from The Kinetic Group, with a definitive agreement to sell The Kinetic Group for an enterprise value of $1.91 billion. This transaction is expected to close by December 2024.

As of September 30, 2024, Vista Outdoor's cash and cash equivalents stood at $36.9 million, down from $60.3 million at the end of the previous fiscal year. Long-term debt decreased to $587.5 million from $717.2 million, contributing to a reduction in total liabilities from $1.28 billion to $1.12 billion. The company reported an accumulated deficit of $(137.1 million), an improvement from $(236.0 million) at the end of the previous fiscal year.