Q1 2025 Vista Outdoor Inc Earnings Call Transcript
Key Points
- Vista Outdoor Inc (VSTO) reported sales of $644.2 million for Q1, with The Kinetic Group contributing $370 million and Revelyst contributing $274 million.
- The Kinetic Group delivered an adjusted EBITDA margin of 30%, demonstrating strong performance despite economic headwinds.
- Revelyst achieved market share gains in several categories, including bike helmets, snow goggles, and fishing sportswear.
- The company made significant progress on its GEAR Up transformation program, realizing $5 million in cost savings in Q1 and targeting $25-$30 million for the fiscal year.
- Vista Outdoor Inc (VSTO) reduced its net debt by $81 million in the quarter, ending with a net debt leverage ratio of 1.3 times.
- Revelyst faced challenges related to new product introduction and order fill timing, impacting Q1 results.
- Gross profit for Q1 decreased by 6.9% to $211.2 million due to decreased volume and increased input costs.
- Revelyst's Q1 EBITDA was down 35.2% year-over-year, with an EBITDA margin of 5.7%, reflecting lower gross profit across all segments.
- The Kinetic Group experienced headwinds from a global powder shortage and increased input costs, which are expected to continue.
- Revelyst's sales guidance for the fiscal year excludes contributions from recently divested businesses, which contributed approximately $30 million in sales in fiscal year 2024.
Hello. And welcome to the first quarter fiscal year 2025 Vista Outdoor earnings conference call. My name is Alex. I'll be coordinating the call today. (Operator Instructions)
I now hand over to your host, Tyler Lindwall, Vice President of Investor Relations. Please go ahead.
Thank you, operator. And good morning to everyone joining us for our first quarter fiscal year 2025 earnings call. With me this morning are Eric Nyman, Co-CEO, Vista Outdoor and CEO, Revelyst; Jason Vanderbrink, Co-CEO, Vista Outdoor and CEO, The Kinetic Group; and Andy Keegan, Chief Financial Officer, Vista Outdoor.
Before we begin, I'd like to remind everyone that during today's call, we will be making several forward-looking statements reflecting future events and their potential effect on our operating and financial performance. We make these statements around the Safe Harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements reflect our best estimates and assumptions
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