In a business update, Vista Outdoor said that adjusted earnings for its fiscal fourth quarter will exceed its own guidance, adding that it has the support and financial flexibility required to navigate the Covid-19 pandemic. In addition to several brands from the fields of tactics and shooting sports, Vista’s portfolio also includes brands like CamelBak, Bell and Giro.
Vista expects to enter its fiscal year 2021 with more than $150 million in available liquidity under its asset-based revolving credit facility. Thousands of Vista Outdoor employees continue to work, as many of its operations have been designated as essential by the U.S. government, since customers include the nation’s armed forces, law enforcement and other critical functions.
During the quarter ended on March 31, the group saw strong demand within the cycling and outdoor cooking categories and achieved record year-over-year growth across many of its brands through the direct-to-consumer channel. Vista expects to meet its revenue guidance and to even exceed its guidance for Free Cash Flow. It anticipates a non-cash impairment charge for goodwill and trade names in the quarter, which will negatively impact its earnings. However, adjusted earnings per share are expected to exceed guidance.
Vista Outdoor will report fourth quarter results on May 7, 2020. .
Separetly, the company has announced the appointment of Sudhanshu Priyadarshi as chief financial officer. He most recently worked in this position at Flexport and before that, VP of Finance for Walmart’s e-commerce business. Priyadarshi succeeds Mick Lopez, who will be leaving the company after a transition period. The management believes that he will be a “tremendous” asset as it moves to the next phase of its transformation and sharpen its focus on e-commerce and organic growth.
