Acquisitions keep Vista Outdoor in growth during ‘transformative year’

Sales modestly rose for Vista Outdoor during what it described as a transformative year, where it separated its two segments into two independent companies, Outdoor Products and Sporting Products.

Vista’s heavy hitting cycling brands – including CamelBak, Fox, Bell, Blackburn and Giro – form part of the Outdoor Products segment.

Year ending 31 March 2023, Outdoor Product sales were up 1.2% to $3,079,807 (2022: $3,044,621). The increase was down to acquired businesses – net sales of organic business decreased primarily due to “reduced purchasing across nearly all channels, partially offset by pricing and increased direct to consumer sales”.

It was a similar story in terms of profit. A decrease in gross profit was caused by organic business volume declines and increased product and freight costs. Declines were partially offset by volume thanks to those acquired businesses and improved pricing. Gross profit margin was 29.3% compared to 30.6% in the prior year.

The business acknowledge a “very challenging market” in Fiscal Year 2023, predicting conditions will continue “at least through the first half of Fiscal Year 24”.

In its annual report, Vista emphasised the strong sales position its brands hold and the long term positive trend of Outdoor Product industry participating baselining well above pre-Covid 19 levels.

It also picked out some brand-by-brand highlights, including Bell Helmets’ partnership with the estate of Steve McQueen for a series of helmets and apparel, as well as CamelBak’s cooler backpack ChillBak Pack 30. Giro’s Ethos Mips and Ethos Mips Shield helmets, integrating LED lights and turn signals, were also picked out, as well as QuietKat’s new Lynx model, establishing a new category for the off-road eBike brand, as well as the all-new 2023 Village eBike, aimed at urban and weekend adventures.