VSTO - Earnings call transcript Q1 2025

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Operator

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.

Tyler Lindwall

good fiscal everyone year and our us operator, quarter first XXXX you, morning joining to for Thank earnings call. morning Jason Outdoor this and Chief Financial Group; me are Outdoor. Co-CEO, Keegan, Nyman, With Vista Vista and CEO, Andy Revelyst; CEO, Vanderbrink, and Vista Officer, Co-CEO, The Kinetic Eric Outdoor

and forward-looking provisions like make of remind us Litigation our potential that Reform assumptions several forward-looking updates are future statements, These statements. understanding and their best during statements Act. these obligation and we on safe today, forward-looking our call, estimates the we Before harbor Private reflecting We to no based to begin, today's Securities on statements financial our provide are the under operating reflect known effect I'd these we of information to making and to everyone performance. will be events

subject Outdoor's forward-looking from release you Vista note Vista industries our posted press non-GAAP we filings and our supplement and materials the face these statements risks information results quarterly to morning These differ that investors.vistaoutdoor.com we actual are and We uncertainties earnings measures. encourage Outdoor forward-looking and include statements. comments financial may presentation which at our which to in that review the on website have uncertainties. Please and this for risks factors of on and SEC also operate, more these materially reconciliations

you. Eric, to I'll it turn over

Eric Nyman

thank morning, XXXX you we us and results. for year Good our morning Tyler. fiscal discuss everyone, you, quarter Thank as all this first joining

release I the issued wanted week. Before to I first press quarter, dive on into last the touch

sale of its the alternatives Revelyst, for have a interest include is full noting The Revelyst. a of following: potential transaction release, September and alternatives including the of an an adjourned range partners. acquisition for is XX, acting of review a review the the issued and will comprehensive Revelyst also the of we that considering Board The in be meeting exploration a to the stockholders. strategic have potential company committed week, Board to One, of best XXXX. CSG with CSG special commenced and strategic Last

In In The the would by its Outdoor and agreement. Considering separation to Kinetic equity Three, with partner of partner through of can and to of private confirm The Board Capital with engagement consideration expected on increased be spin-off. be stockholders. has diligence determined merger recent the proposal proposal This lead if continued order; Vista July increase including proposal, terms proposal MNC to its company's meets to or providing short of the proposed would if recent a private and the acquisition MNC Vista XX, that to were that to and date, Outdoor it to price. value a we us that statement the a the engaging there follows the public Outdoor of a able in equity expects acquire Vista CSG addition, of standard statement, its and for to reasonably Group to Group. Two, superior to XXXX, MNC's Kinetic one, for under respect increase deliver light our see its engagement MNC's Revelyst to conducted acquisition with basis an reason the offer our Vista superior offer, and extensive MNC

maximize looking in order to at value. strategic are stockholder advisers several Our alternatives

we on the MNC company's if review, have update stockholders. value the to can strategic an As see superior deliver they with for engaged

Revelyst Group partners. The Outdoor recommend the parties potential commitment several regarding with to the Vista acquisition to exploring and acquiring Board business. CSG potential out a reached acquisition have Furthermore, of of to Revelyst their remains Kinetic stockholders steadfast we Additionally, in The continues evaluating merger that products for all agreement favor stockholders, innovative ever proposal in would the high-quality value and delivering the forward we our maximize adopt the around as as to strategic remain on of CSG. focused alternatives look consumers to vote world. with for We is

Moving on to Revelyst results.

across first of their and of grateful the separation. XXXX, hard year organization segments, in the face plan delivering certain in the base work continued quarter teams our against and market are we in our fiscal the Our in the for executed headwinds uncertainty planned continued of

initiatives That QX face We which that did to chain in place of to results led and led improve X.X%. in launch our were in adjusted adjusted and product understand new cost-saving innovation. Sales was not margin an supply GEAR challenges putting million, timing the solutions EBITDA by for future. the And Up and some did the to $XX are challenges find tailwinds EBITDA expectations. in introductions, great up our said, both some we quarter were million, and already the teams with product $XXX

We potential are Revelyst deliver strategy in confident year financial and XXXX to in that executing. the our targets believe strongly we are fiscal on long-term

our stand-alone drive to implementing actionable the value Across progress we strategy enterprise, made creation.

dragonfly dragonfly our wheel generate The contains dragonfly our integrated across brands. expansion to wheel which margin on strategic and strategies our iconic our propel built our logo. growth, is to key dragonfly of strategy Our The wheel is upon momentum. flywheel, multi-pronged Revelyst international plays house unlock

strategies, product channel and is world-class and and unlock dragonfly brand robust and consumer The international ecosystem technology wheel informed direct-to-consumer value focused offerings, a innovative partnerships. digital-gaming to licensing through enhanced

focus well partnerships. market offerings market to and as the challenges gains, leveraging divestitures. and on to and on conditions brands and of remain poised through We portfolio matter market growth innovation, order our our to power and to driving related revolutionize We timing category-defining share are focused continue market future no softness, win technology by despite brand-led product, leading innovative share as consumer-obsessed

market and these Revelyst offerings declining in across Adventure mountain we of capturing brand environment. partnerships bike innovative are share include Sports, categories, market helmets, highlights, bike examples a including in numerous and Recent hydration protection

to with launches. out. capitalize customers Newness is of styles, product are and further intend VXRS, our these Purevue introduced newly in We new the trends gaining such our many and products traction with on as Raceframe sold upcoming

launches have share platform Performance, Outdoor gains. market driven the Revelyst across recent In product

to won successful ICAST recently Latitude continue best-in-category sportswear, waders hold Pro in a a launch market growth in the the market at the Chef Women's SIMMS at and in of that grill cooking where Suit. The We X% has where been Hoody broader top Dry dominant category market. awards in the spring category, share bright drove within outpacing the we grow we fishing in and Gridiron position for outdoor Camp the the flat a spot

multiple Revelyst product the launches. Technology, of had consecutive as growth and of a Foresight Falcon Precision QuadMAX In quarters result Sports has

product sales of for still sales drove delayed XXXX. fiscal The Phantom the capture Golf Bushnell lower quarter, expect in anticipated to year of additional rest this launch GPS the X than but the we

Bushnell same power that and standard really in Golf rangefinders. and brands golf the two change Bushnell under this and Foresight and Sports the way technology. information continue showcased be and utilize The from fall. these will Foresight a Golf, platform golfer living leadership capture With cooperative laser will to between the set monitors effort of launch

work, In streams, teams our unlock been partnerships new hard licensing ink and to our new at Licensing, platform brands customers. leveraging our reach brands revenue further have to scale additional

campchef.com. town using defining brand's home. the category ever, as the ambassador Fieri news and in multiyear include long collaborations and of with more Fieri. celebrity of This Camp several announce to an unofficial will lookout Be are products excited and chef Fieri biggest between announcement for Chef on We partnership August leading flavor and collaboration cooking and channels across served Revelyst, equipment pieces. innovator co-branded Chef while and Revelyst outdoor himself Guy a This brand with the a this gear. Fieri restaurateur, collaboration at Camp on stage XX unites our mayor partnership on will include screen, number the cooking between on on social has

Revelyst. welcome extremely to Guy, excited We team are to

and we will licensing soon an the Honor Folds the This relationship will collaboration coming bridge agreement offering Furthermore, with have the Volition Foresight, exciting digital world and at of product custom through benefit Foundation. our America. and very tangible

international unified on, is grow there we underway, a that and significant a our opportunity brands Moving model believe transformation through elevate and our and scalable to our is and approach. expansion of operating

our the at plan through progress We regions brands. to can the operating where additional expansion continue have operational unified our brands a has of for acquired backbone We for to expand leveraging acquisition to new across globe Fox. model by we to Revelyst catalyst strategic presence reach made This allowed markets. us be substantial growth our the a

early look channels at our year-over-year places strategy approach, direct-to-consumer grew we and other and promising, Amazon. where and we low are with our This As digits particularly owned-brand including results enhanced direct-to-consumer is our QX. process single in digital emphasis in sites, on strategy shift Amazon, e-commerce an

Revelyst the and We Sports seen contributor up the where sites, be over a growth to leading direct-brand also gains Foresight, at direct Technology is and revenue site year-over-year certain including to continues XX% have platform. Precision

over drive platform in had TikTok with CamelBak's Revelyst with We to the a success million campaign, repeat that sales engagement achievement products the views and on Instagram milestone the created Sports iPhone this brand million We post received views highest all and X CamelHak, of becoming on X aim Instagram, also time. viewed the on in Adventure over-indexed and other future. to

create and content that applying and gaming digital-first consumer esports thinking experiences to gaming digital provide Revelyst's engaging initiatives new Our are opportunities.

our team digital recent course. to commitment that Foresight No. exceeded course year-over-year at We of the explosive forecast acquire gaming simulators the a also coincided launches, broader strong and this model, PinSeeker Pinehurst strategy. our digital business. and our have on Open to jump-started acquisition U.S. our early acquisition the PinSeeker launch our Foresight has decision studio had PinSeeker quarter our seen results course of available with strategy. validating Our furthered namesake The growth week of including successful played has X that further strategy

course list. course also and Foresight's that Iti, use for our #X a for commitment providing simulators Digest, Golf list on of courses in World's to our entered partnership simulator offerings, owners. with can world These be in the an demonstrate premium all XXX of the experience our user Greatest purchased Tara Courses exclusive ranked Golf the add world-class into We to

have developments is come road expect soon. map the We are forth, by announcements encouraged and to the set we and team these to more

our potential. will excellent significant our the GEAR our You our core from to to assets on growth highlight about focus strong with optimize Up Andy our on transformation I to portfolio progress and but wanted more have value teams shortly, done work hear

strategic them resources This with can endeavor. GEAR of that transformation In to we Products. divestiture sale the reinvested new new the brand, and brands generated The Energy support Fiber luck of of July, Up announced ownership best Energy power wish provides innovation be in Revelyst and scale for we in initiative. this and product cash our our the Fiber

now May, the strategic completed portfolio. Alongside our X announced rebalance in sale we to RCBS have divestitures

on help will and is review review best I for and international additional where channel and at Teams transformation expansion rebalancing content and Revelyst. create opportunities energized closing, across the GEAR see our The and of in through thinking dragonfly position a evaluating us enhanced strategic critical in value-creating the we success. In front our licensing This margin our wheel growth through Up and exceptional in are was direct-to-consumer, and program have we to executing am road ongoing, innovations, to to long-term Our step gaming unlock by engaging further us partnerships game-changing future. strategy digital-first business map opportunities.

We of our in that of the in us. strategy drives my our relentless future are belief and excellence, pursuit ahead and

in and financial EBITDA announcing more year Day that stand-alone targets our adjusted about the In Revelyst our to and date in confident be upcoming story. ahead am to XXXX. double the sharing ability the details of forward we'll fiscal Investor look our spirit, weeks in I

it hand The to to now Kinetic update over an provide on over Jason, Jason you. I'll to Group.

Jason Vanderbrink

end year everyone. above quarter of Group and sales continuing the $XXX million, Thank we Kinetic 'XX. delivered EBITDA you, million The XX% first expected earnings Eric, fiscal strong the at margin adjusted demonstrated the EBITDA morning, of with performance for an were and adjusted $XXX good of

stayed team with facing a power Our economic shortage. inflationary focused navigating headwinds and pressures rising while and global prices successfully commodity has

purchase trust. share As at and slow, the expect vendor market will brands if consumers history we the consolidation has shown us due times, market customers they to to to gain our starts several generally

category. are the finished fill every seasons, in inventory goods this our we getting category hunting As well positioned demand in key close all consumer in is hunting important to to loads

expect shape has the is we momentum built We years. the to several best demand in acquisition continue Core-Lokt Remington and have since Hevi-Shot inventory it in the been and

which has produced consumer has margins able the program calibers build also purchase seasonal that been with many Our years, not to higher many brings in it.

meet try to the continue we to demand which have our product, game-changing product. we the forecast exceeded seen introduced CCI this We with Uppercut when has

brands our swept technology. the excellence were show, National consumer in Federal for Carbine, & officially Bullseye were Awards and category. Meetings trade recognized have This Annual the new Shorty every largest XX time Premium XXX Rifle is we industry's Dot these Speer's prestigious the Association first in presented At exhibits, The products awards Golden Buckhammer. Gold Remington with ammunition product Force

States Continuing United States federal for demonstrating contract Navy history the the the our product our X.XXxXX and American in warfighter a separate long-standing products support Special manufacturing States for best United Operations the and for expertise award supplying the long-range SOCOM. This protect Military, million United Command the or announced ammunition being contract currently produced of United defend. $X.X a States with to is for proven trusted

beneficiary the we're Vista The at to helping Office, Council sales we a donate Fund. true is benefit As testament part that able communities Assistance to in of the serve charities, Anoka Brotherhood our $XX,XXX our Employee located held This Sheriff's DNA, of in. auction our County least recently Anoka are County Minnesota company at and Police annual Anoka the and meeting Outdoor Shelf County our factories to the Food a Department, each

the data participants. supports volume monthly surpassed baseline a than higher healthy straight in continued of million NICS and June, background This For shooting checks. X high hunting more XXth and month

navigate reflected facilities a our in and America best allows financial the by election, the our best the in us, in between on serves sharing, of profitability. presidential key future focused for The our all building to manufacturing factories us we tremendous cost production and which on American competitive United is States technology cross As our metrics. resulted in collaboration ammunition delivering expertise. has This advantage savings, as cost route and remain

not has Our change. will and not mission

We expects consumer will focus wants and from end on what the and that. work backwards

our multi-brand consumer share. we ammunition this and gain the and third lead and a and Kinetic to Group us have with our strategy, to developed are continue quarter. ever customer market will to base the diverse With we history The poised through leader in is customers be planning release in most market help we obsession service technology, product Our volatile the exciting us in

I that highest at with to perform the we level. have ammunition team full confidence business, the will in continue the best

with share, delivering and growing future building innovative forward and market look great world-class Our we opportunity, our to diverse and and consumer customer our on products is new increasingly filled to profitability, base.

financial to and of Together, our team X,XXX team being for winning their to our in Thank want you. best are metrics I members that. steadfast our thank world. commitment we reflect part vision the Andy? just the and

Andrew Keegan

focus hello, most non-GAAP results you, Thank Jason, adjusted the we've directly financial on and unless to period, slide appendix presented In everyone. are to measures. year the My comments the of today prior financial noted, measures. using will to included the reconciliations these comparable presentation, which otherwise financial GAAP compared non-GAAP measures

and refer statements of measures, please forward-looking regarding information additional X non-GAAP For slide to the presentation. financial Page

follow. and Revelyst remarks Revelyst that Revelyst X manner The my Outdoor reference Technology combined Performance a in Revels as will Adventure I Precision segments, in Revelyst Sports, Sports

us program. initiative momentum stand-alone adjusted we progress channel despite that product GEAR and order At EBITDA million challenges Kinetic fiscal transformation year our savings expectations partially results. our quarter. we cost adjusted timing, the our and that the Revelyst, attributable persistent long-term in made At on will headwinds. Up The was sale and Up cost the introduction These our gives of divestitures realized experienced Group, double softness on the impacted field GEAR strong met market $X progress in specialty We've XXXX. to related offset were The goals new input and our confidence by of during EBITDA to

$XX Kinetic quarter, and $XX cash Group strong flow to Revelyst, us the million outperformed to our Additionally, in focus reduce allowing a net in at adjusted to reduce inventory due by The million significantly the free adjusted from first debt continued delivering our free expectations cash flow quarter. position

increased at quarter, total million $XXX.X and Kinetic first government partially lower at Kinetic X.X% increased offset the Revelyst For due The sales volumes by and to The Group. decreased Group sales at Revelyst, price to

to at increased volume Kinetic offset input lower volume including Gross due Kinetic powder at X.X% million partially The profit for and Revelyst, Group. QX at to decreased increased price copper $XXX.X by decreased and The Group, in and costs,

relatively QX EBITDA in decreased an at decreased The equating related decreased XX.X% at flat XX.X%. million EPS margin and gross Group GEAR offset QX initiatives. margin profit EBITDA general to by QX X.X% Up to of $X.XX. XX.X%, selling, was $XXX.X Revelyst, due to Kinetic and costs administrative partially to to declined

Turning XX. to Slide

strong in a Our balance is sheet position.

incremental inventory improvement Revelyst year-over-year a Revelyst $XX X% and in of financial million reduction driven by Vista million We discipline by year-over-year levels. or the placing sequentially. sound drive and sharp continue XX% inventory Outdoor approximately on quarter, exercise focus XX% $XXX decreased at inventory primarily or to

and continued debt sequentially. million in The the reduction inventory reduce Our million opportunity strong free of Kinetic by profitability efforts quarter, flow Group at providing drove the at cash $XX Revelyst to net adjusted $XX our

equating debt $XXX net the a net of Our debt leverage ended ratio X.Xx. at quarter to million

within QX Turning XX. business sales offset year product Revelyst Sports unfavorable a Performance in Precision partially well Slide and decreased at and mix volume Revelyst, Within prior channels costs new as Sports driven timing sales sales decreased profit million within wholesale the XX.X% discounting XX driven timing lower $XX.X at lower Technology. to volume partially product in a at Golf, growth at basis for due product Precision gross and in XX.X% order Revelyst and million, favorable Sports, Revelyst delivery Bushnell on revenue royalty lower lower our price-point onetime Foresight preorder Technology. to Outdoor in by and Technology. Gross XX.X%, was year Outdoor the at result as mix The introductions Performance of increased by within Sports, product prior Outdoor QX and Adventure Adventure $XXX.X as decreased decline margin lower Revelyst Revelyst strong results by towards new to Precision timing Revelyst introductions points order to reduction Performance QX Sports offset Revelyst in government to and by freight Revelyst at

X.X%, quarter Up $XX.X segments, general at X decreased and related down was profit margin the GEAR costs to million, selling, points due was down offset XX.X% administrative by partially year-over-year all the EBITDA for Revelyst gross QX lower initiatives. basis and EBITDA to XXX

Gross offset For remained decreased decreased costs, margin at QX across QX to categories, in and partially X.X% shipments These decreases increased to and nearly $XXX.X million sales price. powder. flat QX to The due due and input Kinetic copper decreased all price. Group, million increased offset XX% X.X% by $XXX.X by lower in increased volume profit primarily partially for were to

down general and for QX costs. decreased and selling, EBITDA profit million, EBITDA XX%, X.X% was and was the due increased quarter to $XXX.X margin gross administrative

on Page XX. Moving to

look production to at the These powder. and The the remainder we increased to and a year top powder both we to Kinetic limiting fiscal and As Group from are headwinds copper XXXX, factors on bottom continue pressure costs, for put including the to input continue see from line. global shortage, of expected

for sales the to Turning our Revelyst business. guidance

while have specialty, we we the stronger softness performance and to Within channels seen seeing direct-to-consumer serve, channel. the in relative specialty mass in

a specialty we mass those had saw channel we seen quarter have improve growth we the in during year health see channel, specialty both saw Where in softness and new year-over-year introductions, relative prior to to well. continued channels. the product in as did inventory successes categories. We We the

the remainder fiscal of $XX due excludes of both the to Fiber fiscal quarter to related the XXXX in Products, recoup introductions. list product we orders orders, product Further, Energy contributed delayed and included been out approximately which year, $XX shipping combined and and total XXXX. to We shifted the coming to the key-partnership year QX our sales in our into announce do exciting year have guidance million at which of RCBS RCBS Energy fill Products we sales of divested. new the the launches, million months. of of launches look of Fiber we challenges that and QX end cross-collaboration guidance to plan expect As in have

the improvement a at GEAR number are we including year each in and quarter our expect fiscal to see expectations As to for EBITDA sequential due of Revelyst Up our margin look program. guidance, confident transformation we factors,

path we $X of savings mentioned, Eric GEAR As our which are a to in We in contributed Up cost million tremendous program, making clear see quarter. the first reaching goal realized with our progress year chain to that organizational savings areas XXXX. million our costs Up and focus direct million estate, GEAR $XX $XX in key supply cost structure, Across costs. real fiscal and include operations, in indirect

we expect structure and consolidation structure, to bring with our on headquarters to million $XX efficiency cost in platform in growth our year new Within estate an leases to capabilities. Within of increased refining U.S. savings million promote cost eye to this the and through savings due expect X organizational by X/X. to year footprint reducing estate estate, real we $X real real approximately by million $X space, save exiting this our

than our targeting are more to We savings chain $X and operations. supply million this of year related

At the strategy. center of this is our distribution network warehouse

reducing reduce are our distribution footprint and to our inventory rebalancing network in We costs. the center

third As the of by second the of quarter. of closed a and end today, closure distribution we have the are centers X targeting

indirect we card through to a One the costs, supply line that have a in flow to direct million conducting finding at cost card million And P&L savings contract year. the costs, of rationalization, is categories anticipate $X this term, we and it significant relates reduce Looking fees savings that the $X as through credit of will example we simplification. new pay key-spend longer transactions. we consolidation when contributing to cross-brand will sight are

Up by rate our with confidence pleased of run The are cost have of long-term provides to date. we Overall, goal savings we achieving FY $XXX positive realizing the built GEAR XXXX. results momentum in million

than are: in levels contributions Revelyst program in turned as our fiscal restructuring our higher which XXXX. announced considerations will have to priced Beyond promotional usual inventory outlined, higher freight $XX compared and considerations expected as chain year cost supply had to promotions, our previously April guidance. also fiscal freight in the inventory and from down. XXXX to our will XXXX contribute Up inventory lower drive the year have levels Gear with approximately we initiatives Improvements through our incorporated additional balance into we These million

We expectation to operational the adjusted We EBITDA flow organizational through and the term regardless stand-alone long term, improvements believe to both positively EBITDA will Revelyst Revelyst are that near-term long line in in adjusted marketplace bottom in our short and confident And of mid-teens. will continue to our Revelyst double stand-alone that reaffirm margins year the fiscal be at XXXX. the over conditions.

Based $X.XXX $X.XXX factors fiscal $X.XXX the to sales $X.X XXXX, billion, we to sales on the billion. Revelyst outlined full billion for Kinetic year billion Group The expect to of billion, of $X.XX of and sales $X.XXX billion

Adjusted in Kinetic million, adjusted of million, $XXX EBITDA and between of $XXX $XXX million $XXX adjusted and cash to range million EBITDA $XXX EPS between flow to EBITDA $XXX million The $X.XX $X.XX to Group million Revelyst of and adjusted $XXX the million. and million. Adjusted free $XXX

at for businesses. phasing and The As Kinetic we both look Revelyst Group

each Within the quarter. remaining evenly year fiscal Kinetic distributed Group, are both sales to and X EBITDA expected for of the be the quarters

sequentially, we expect we Revelyst, to remainder we at the continued look throughout of sequential and but QX, the improved as be For see sales year-over-year, down year. improvement

through year and higher the remainder to expect fiscal to We We more GEAR Up EBITDA effect. double margin the XXXX. year improve than the than further take sequentially EBITDA prior of expect be savings as sequentially

the everyone. Operator? questions. you, Thank line Please open for

Operator

Glaessgen today from from Our first Riley. comes Anna question for [Operator B. Instructions]

Anna Glaessgen

the there with the helpful give and more guess Revelyst XQ were that there's shortfall, EBITDA year. I guidance timing you've start kind I through doubling. in reaffirmed on to you of call, Taking but issues the a off, double associated account that, getting To help the bit us little year? reaffirming understand that to could just you stand-alone into this

Andrew Keegan

the question, appreciate I Yes, Anna.

look that there's at look two we at I as probably bridge. So as prongs the we --

the year-over-year to $X to to $XX Up million, the the we that to number. And the of our the imply million going which to which it year, to rest be that $XX have we would do The to are year the million bit we this see million happening, We look ship talked how that last future. as into we about more didn't variety million is year on we past of a we're that divestitures activities we $XX color standpoint $XX and the is started in well. is a a for confident we out has able GEAR be as go a to have we're on path to see chunk that did out difference the total stage -- the the through. savings coming the We First, from mentioned, get of little give talked revenue reasons. head year about through explained the the continue seeing this increase for of The as going and at the throughout side, from quarter to why year.

that So some pretty a that And are even that. it's quarters that the QX in clearly for was there we've onetime items between then split mentioned.

products That we million year-over-year. difference had about So call of mentioned between the the year. prior royalties accounts and $XX that mentioned on new the preorders some the in that we had on the the call, for

we're quarter we quarter this be going that the were just they announced Fieri the quarters introducing, look And looking with we in have partnership on see products stronger not in rate new year it down going would our I plus are type we than amplify to basis that we're run what as we because last didn't the we're to that future going sales -- as future the Guy the significantly improvement forward, each forward. So have as see we imply. activities in those we the are call EBITDA, normal be sequential as to and able to

Anna Glaessgen

the see And that inflect start provided you've -- taking at to that we based closer a look fiscal Got margin. little should in on gross it. taking Would to assume then a the third quarter? color it safe be

Eric Nyman

with start Andy. You'll

Andrew Keegan

for stand-alone. Yes, Revelyst

improve You'll even second in quarter. start actually to see it

which so of structure As start COGS, the That does margin sales do cost fixed compared sequential sales fine. mentioned, up. see our on help cost will of goes what to, that, to call good have on our numbers the of we're start we the program, some gross have line. revenue pretty to Alongside drive our kind old the us flow-through of our improvement sales each in distribution for cost impact implementing we improve, we the through we will as COGS at will Up quarter margin which GEAR

So that also of activities see through you continue those will helping this the margin benefit to line the year. rest as

Anna Glaessgen

it. Got

product encouraging it's new share categories little but that's market or and like getting allocate their to still gains market? product a to to some some think you there hear in space channel in inventory speak ability seems still capacity your in take are on to to to response to is been go introduction. of you're Revelyst specialty seeing a good I these introductions terms and overages. of bit the new It better, hurdle Can some that

Eric Nyman

Sure.

certainly, market terms the share on bottles bike goggles increases Performance some in -- with by plastic to Performance, some good the proud share, with at group flat what increases Circana, to and Outdoor good Precision bike seeing increases within On snow in encouraged highlight in the Group, share. grills Adventure hard and again, we're in that. with to our front, of CamelBak helmets sportswear, we're market increases some Outdoor Circana And within We've monitors. side, call of according on top launch Sports we're Golf we waders, Datatech, seeing, according did share according within all our are Revelyst hydration had, Revelyst me, excuse on we and Sports, fishing our

seeing market are regardless share. improving we board, of the some conditions, across So

that is It's bike that a something to as your question as we we continue business, specialty, a spring, specialty, the by but a our think regards see of portion we at example, we look I that kind like smaller for about do see market, but complete of turnaround. see longer-term specific And that with to we we to think to we're seeing preorders. shoots, things next some green starting to as shoots are green XX-month already some turnaround. that see XX-

the On some like places terms hand, we've in signs talked of seeing good other about mass, we're improvement.

pressure with outlook a longer-term now, right to retail improvement. probably bit a a is little our regards it still across feeling base, channels. bit So is most Specialty different for a of changing with of environment the

Operator

from Our question ROTH from next comes Koranda Matt Capital.

Matt Koranda

the about product more and quarter? much happened? then like the in push and million on Just just why you hear how put guys launch to side, the out I issues to Revelyst sales benefits the did $XX point in delay a in the quarter. in Just wanted second just Was maybe a revenue? could what called that clear, release? And the Bushnell delay on that bit second the what finer hurt were, shipment out And guess, into little be all just sounds you the the addition that

growth yet the spills why I second So quarter? we in guess we potentially, we're growth, see not just it in seeing and should seeing aren't --

Andrew Keegan

Matt. Yes, good question.

overall. the on the really I One So so introduction. two components, say, is there's product delay, would new

we we wanted our consumers' going introduction did What needs. the we that product what do. an we products So are to meet the quality pride be and of going that products have ran wasn't was that ourselves into it a it on to to -- issue do

able chose subsequently We products a final into fix arrived, market So inspections as quality delay, now a in it. launch software we platform, being as a the correct. is then did to an delayed. product to processed. launching little the with to being of we issue That our we the Bushnell and product that noticed needed we instead required bit the we product Golf our that It had

that It out So the through. in is coming market. is there

of of to exactly through but when see sales. the We those expect those we'll all timing that into Could some go the do we them QX, full in, back to expect recoup come deliver year.

them through more getting processing the was as of order of a was, back it the them end the to there other -- was credit that, whether them able process was was entry, to quarter, some The warehouse out noise shift our and and This system. the we piece deviation order reviews, into type getting there it warehouses. in it's being price activity whether

As and people little caused moving shifting a to, we the delay. we're move bit platform that to that are of

after we better and everything month in actually July, issues. what we that We expected. have would and full ended a the Chain Beck, work team to went of Officer is had say we out they the Joe as Now issues out the joined addressed as these already, right went place that our had occurred, I has of Chief has than already Supply the fixes out

been to that has think the team I able through those smoothly transition issues. So

down to improvement going which your in but were QX, we is -- little do for we're to the as decrease, still gap bit, better QX be question see growing percentage we're an that a mean, So we're than on that much I we from closing that about. talking

next Those We through going come over the through to launching aren't the few year rest in quarters. are are -- of the that we're all new products QX. the hitting

quarter, remainder start So -- you're we through as with we a expect I the didn't million of $XX the that that to the the see roll going larger you'll year. even head seeing flow-through expect of wouldn't

Matt Koranda

$X under Okay. probably Up. I $XX the off the million, we the of this Revelyst, a What talk in EBITDA the about quarter, the segment I $XX progression the it million. million from And maybe last Up if $XX That's year, savings this relying then million first which year of address for million maybe million, year? else to think to I helpful. another from we're take crack EBITDA get we guess, just million of the GEAR So implies realization in I'll realized to baseline was $XXX of cadence way, then and still at GEAR just that and But $XXX on are that the for $XX rest just add of just there? on short

Eric Nyman

one bit. Why a little and that team don't tag I Andy

'XX our in I for think then million with rate 'XX. on cost regards fiscal million to to and year the run million $XX $XXX savings $XX the through commentary

give why progress. give you bit -- where I more from. have And on coming don't a We think some we little you great we'll that's color made

far team job count talked of the on done we've operational model eye has in times. really side, On several into strategy And an cost platforms the an our already, we've about to with over new capabilities. putting that trimmed structure, already excellent along operating new bringing head move million $XX with place thus refining to our

like that more good part, lot the the EBITDA feel really done we that and on confidence a balance gives savings. us we've So to with on job of in year regards the the a early days

evaluative the that distribution warehouse million he's network we that. our now. year the talked QX Beck get $X new about better. take phase this strategy. And going to hiccups chain. And in Andy our on million As We're to over have million targeting We that. we years, of full supply to some accountability X in on we do are Head brought But We've way in and mentioned, $XX to did Supply Joe a $XX Chain, that. through for

so to XX%. consolidated far targeting we've this our year, warehouses And domestic warehouses domestic already -- consolidate our over are by

over probably forward, Going we'll domestic warehouses our period XX%. consolidate X-year over the by

be that's in a we us gives confidence savings more and improved side, that again, on the to terms us. that's for very important while lot So chain supply going of performance, something

good costs. have us We estate targets on estate see also good over alone flow-through. we're some indirect happening our year EBITDA flow-through On XX%, U.S.A. reducing this footprint, EBITDA that our real will by footprint we and real and some give

QX P&L, that that sharper we're So sequential and think you'll flow to see start now that and we start focus through in targeting come I goal the we're to can into seeing continuing through improvement. EBITDA

that if you element? know, to any more on add don't think, Andy, have I I

Andrew Keegan

the to. call are we only your drivers point closing Matt, it, the three of for $XX-ish gap of primary There question the, I'd on The to thing, contribution. rest million

we first Revelyst for the about April contribute so was through $XX talked savings or which program, the of we additional XXXX overall have restructuring will done, business. had other The is about restructuring this million program year which that

are our freight. seeing in We improvements

the down. for costs we as down company, head year So our coming prior this compared come freight substantially, our our the inventory levels as years, is pretty in to through with cost we container are reduction seeing improving

you to inventory and still promotional, than promotions last be less the was that recall to will lastly, we the and third holiday drive promotional themselves successful. retailers' then And is actual were intentionally trying promotional, inventory promotional, year, expect in down we season, our promotions. may This year, year. and very our quarter, but We it's be don't last were as the

So the for those $XX-ish million of additional EBITDA primary the are three drivers contribution.

Matt Koranda

think maybe then cash me, one free and little you quarter makes to bit solid last maybe the flow be guide. cash flow that free seasonally, for looks sense. I That a Okay. where reiterated just ahead expected And in the guys you of first the

You flush a from Revelyst. Is for did a of call of inventory be cash it guys the on Should in normal looking little for more out Just flush? seasonality opportunity the we flow expect free pretty there in remainder of lot year? to the year. of help terms terms of inventory

of looking the free fiscal about for around just little for bit So the how seasonality flow of to the a more cash remainder think year?

Andrew Keegan

we're business, had both successful happy be We able both inventory the some reduction I came through business. good on being the can Kinetic, a in Yes, EBITDA in to cash QX. the question. strong sides very mean very with on Revelyst drive how of down

at -- go of much We that. see see build the the probably actual up the drive look go on QX holiday of season, the a as be we As we year, as some quarters. through expect do to the slightly, inventory inventory last you'll on I into the I'd season, expect wouldn't lightest so

head trying they able on see and also as to to some season. businesses to get some our be You'll hand AR into through products we're that have as products sell

quarter back probably and that see pretty in are will the to you'll size. the then So lightest similar be

Operator

next Markets. Our from Capital question Mark of comes Smith Lake Street

Mark Smith

couple Kinetic I just a of on questions first. had

Just guidance the looks gross margin implies down just within cost margin coming the of than gross looked Kinetic the about a profit expected. Group? It little some that on profit talk you better through pressures year. of of Can and kind outlook rest the your like

Jason Vanderbrink

Yes, Mark.

profit obviously, and gross due first mainly quarter, gross quarter for mix So had we a to price. the good margin,

to price which substantial. a powder, going on And pretty which obviously So elevated, on be the we commodities that's continue with are helped year-over-year in to be the did out. quarter, half, push the to the is expect remaining that increase category we increases, back along

categories be those So the it would for. drivers biggest are

Mark Smith

this year? similarly with later take of just Jason, additional what then if to maybe talk inventory, as out well And channel about pricing as kind you to increases the on price just, want and industry availability if commodity price needed you're Okay. there seeing in Kinetic,

Jason Vanderbrink

think price market, I Mark. to Yes. we're the to able into going don't push be

got I costs. think we're consumption you a weigh there's that think going to commodity balancing versus of act to always I into that

our I And one think like there's that Having we price. history favorable to discount price are. one they shows to But for I increase the first will we're that, way we and keep right if last it. try. in certainly we to it, our think to So push in a factories the don't the time, same price efficiently market now is think said take the need flowing at

Channel inventory is good.

or Core-Lokt calibers. I rifle, think X if you out hasn't been that there look for out see years, in at you X centerfire there instance,

able a lot or the that been hasn't has calibers better choices he for to consumer purchase. she So

sales our on customers get need some data that. So to

So haven't because the replenishment systems years. can in pick up they there the sales many, been many

overstocked that be is -- our it's think and years been X So I in the now what we're And as anything now. our going not we into as shape channels for in good, is would or inventory orders. really I think say, customers. seeing are good X to sitting We're right replenishment our good it's customers in

Mark Smith

you presentation at out of sales. the in have coming Revelyst. Kinetic that that of Revelyst, continue in to think outlook, off Again, point maybe keep business in government opportunities maybe called government to businesses? any any kind And kind just Kinetic up seeing to for additional on to releases forward, budgets? and both fight you're pick Curious press some and coming contract what or both for And or anything I both Okay. then is

Jason Vanderbrink

Yes.

if go there's a coming, go in opportunities history at that the win instance, foremost. Generally, from want the think chase take we a shows same That's what shows first We're government contracts the we pickup can history time, that's, we at better. -- SOCOM right well. chase Mark, what business we I and now. we our coming. for again, But as a out going as a again, we little it's win, And profitable will if margins don't win on view to profitable. reiterate contract and limb long not the deliver big -- released go on to we in for that There's that where I we'll we go we for -- is And And a ammunition, our love competitor. performance the we us. a risk, some term. contracts Kinetic, winner contracts, I and you are little big a that's For contracts if see look are more think

Eric Nyman

I'll add that. just Yes, to

On the is the Revelyst side, doing. we're really what team proud of

the great enforcement. opportunity a and it's opportunity first our for created the for to Revelyst Vista law believe apply that responders the to overall to outdoors for continue and and military, We to being technology take serve our best our

Virginia within the to that we period, we're area a going an We team BLACKHAWK for over our Eagle, going have working wins, of Beach good And there. particularly pack Revelyst. opportunity to growth and some that in believe hard have that's our did that's great We business be on X-year every continue search and business day. to for

Mark Smith

last me. for And Perfect. one

Revelyst Just, Sports, price Eric, that a you look and to kind I'm as that, mix maybe ASP, kind hear just we love but within for had. it of some look consumer talked back, pallets the at channel pull seeing? kind you're impact in bit of Adventure else curious, today? would anything consumers across shift? of hear how mix is doing Just your you maybe to on about guys primarily little lower-priced like or board of at to the that seeing any Are want -- view kind

Eric Nyman

range see to depending -- continued we slightly we continue regard conditions. some with conservative outlook. down that, we're flat, the seeing or to the consumer up market to very a be been on outlook. what called what year, essentially We've from that's that's And to for what We is the Sure.

the think a our direct I that's to typically with regards business. businesses Precision across Revelyst Sports,

our we I'll I things we're regard our lean our, and to area seeing with you But see to response. in that's think call, mentioned gaming. that and about Sports, hardware, day that response, monitors every If what both of at strong Foresight to launch -- continued it, continue solutions I on like an do digital And think going continued and call you'll we're nature. strong into also, software the our

we're of that team area some proud I'm leaning that's going over and be next exciting team, medium more as think that months. best growth, several into be to to and term of continue work I our the to term. And the the And to going short continues really both announcements there's do. a

regards on shift. With we're you seeing Adventure of asked again, specifically to about, bike, I Sports, bit think little mix a

including pressure in more I we're over term. across, call seeing green it, look we're continued a do I'll about at specialty. Amazon. when some little talked And at channel in seeing I better performance, the shoots DXC, longer first We bit at think some the specialty performance overall, you see like question mass the

bit action are your more about. I think shift, that little specifically feeling more XX optimistic bit we're seeing to XX months, say some to is I'd little preorder mix a a we that question. But

Operator

question next Chartier of Monness, Jim comes Crespi, Our from Hardt.

James Chartier

you Revelyst You Can times confident guidance? at number doubling for year. of your you're said a stand-alone get in of EBITDA the this there revenue low end

Andrew Keegan

our I EBITDA mean of guidance hand. our revenue hand in kind go and

be double exactly bit close at the there'd pressure bottom of being to EBITDA a very the end we'd range. it on little So of be able that. to But

revenue for potential point I think at savings and the the looking are we on seeing Up we in if additional that GEAR we're are that side. at things time, on -- if

of little challenge. So would a we it. a could more still accomplish It just bit feel

James Chartier

the of quarter? then give during both looked like you businesses, me POS Okay. Makes for sense can a sense. And what

Jason Vanderbrink

I first goes Jim our different some. mean, down category. certainly for quarter, was POS by

still really We can we're pistol good. and is some categories seeing And that You imagine down. hanging rifle hunting There's there. ammunition. see in in shotshell

a all, down all So to bit. I flattish think little it's in

Eric Nyman

Jim, And first Yes. it's to quarter we of on forward. on shipments. pressure side, some improving the and the pretty We lot a sequentially line would start going I the much in in say had it Revelyst expect with POS,

Operator

today. have today's that you currently we conference joining. Thank further concludes for no for time, Therefore, call. this questions At all

disconnect You now your may lines.

Vista Outdoor (GEAR) 6 Aug 242025 Q1 Earnings call transcript