Vista Outdoor, the owner of the Bushnell, Bollé and Cébé brands, saw its sales increase by 11 percent to $2.08 billion for the full year until the end of March, but this amounted to a pro forma organic sales decline of 9 percent compared with $2.28 billion for the previous fiscal year – adding up the prior-year sales of continuing operations with the standalone turnover of the Bushnell group of brands and Savage before their acquisition.
Sales of outdoor products reached $730 million for the year, which was an increase of 61.8 percent due to the acquisition of Bushnell. On a pro forma organic basis, sales in this segment declined by 9 percent, which the group blamed on the “market correction” affecting certain outdoor product categories. The gross profit for the segment reached $200 million, more than double the profit of $84 million the previous year. Apart from the acquisition of Bushnell, the gross profit increased on the back of more efficient operations. The Vista Outdoor group's sales were also affected by a weakness in the market for firearms, which reduced Vista's sales in shooting sports by 4.9 percent for the fiscal year.
The entire group's gross profit reached $529 million, up by 13 percent, but operating profit sank by 21 percent to $184 million, due to an impairment charge and costs related to the transaction that saw Vista spun off from its former parent company earlier this year. The adjusted operating profit was down by 3 percent. The company ended the year with net profit of $79.5 million, down from $133.3 million in the previous fiscal year.
For the fourth quarter alone, sales reached $485 million, down by 14 percent. The group's turnover with outdoor products shrank by 8.5 percent to $172 million, which was again attributed to market changes. Vista's gross profit for outdoor products amplified by 17.5 percent to $47 million, owing to more efficient operations and to the restructuring and inventory charges taken in the same quarter last year.
Excluding the impact of any strategic acquisitions or other significant transactions, the company predicts sales in the range of $2.05 billion to $2.11 billion for the current fiscal year. Sales are expected to decline in the first half, all the more so in the first quarter, after an outstanding performance for the same quarter last year. The group then expects a return to growth late in the year, resulting in low single-digit expansion for the full fiscal year, despite a negative impact from exchange rate changes. Earnings per share are set to reach $2.0 to $2.20.
