Vista Outdoor To Increase Focus On Ammunition Business; Stock Down

(RTTNews) - Vista Outdoor Inc. (VSTO) said that it will focus on achieving growth through its brands in ammunition, hunting and shooting accessories, hydration bottles and packs, and outdoor cooking products.

The company plans to explore strategic options for assets that fall outside of these product categories, including its remaining Sports Protection brands (e.g. Bell, Giro, and Blackburn), Jimmy Styks paddle boards, and Savage and Stevens firearms. Vista Outdoor expects that the execution of this process will significantly reduce the company's leverage, improve financial flexibility and the efficiency of its capital structure, and provide additional resources to reinvest in core product categories, both organically and through acquisition.

Vista Outdoor's sales for the fourth quarter ended March 31, 2018 were $571 million, down 1 percent from the prior-year quarter. The decline was caused by lower prices across all ammunition categories due to market conditions in the Shooting Sports segment, and lower sales in hydration, optics, and water sports in the Outdoor Products segment. These declines were partially offset by increased firearms sales due to a product refresh in Shooting Sports and improved sales in outdoor cooking and Sports Protection product categories.

Loss per share was $0.28, compared to earnings per share of $0.02 in the prior-year quarter. Adjusted loss per share was $0.22, compared to Adjusted earnings per share of $0.03 in the prior-year quarter.

VSTO is currently trading at $14.19, down $2.56 or 15.28%.