- Vista Outdoor (NYSE:VSTO) plunged 15% in today's trade to a record low after quarterly sales fell 19.5% Y/Y and FY 2019 guidance was cut, with CEO Chris Metz saying he does not know when sales will hit bottom for hunting and shooting related products.
- There's "no precedent" for the current two-year weakness in ammunition sales, Metz said in today's earnings conference call. "This period of soft demand has persisted longer than any previous market cycle in recent history."
- Sales of $467.8M fell well short of analyst consensus, as shooting sports revenues tumbled 15.7% and ammunition sales sank 17.3%; firearms revenue fell 7.8% because of softer than expected holiday season sales.
- Metz said he knew inventory in the ammunition segment has been coming down across the board, but "what we didn't know and what we still don’t fully know is how much inventory consumers are sitting on."
- VSTO reaffirmed its FY 2019 EPS guidance of $0.20-$0.35 but cut its sales outlook to $2B-$2.05B from $2.1B-$2.16B previously.
- Now read: U.S. Xpress beats by
- Now read: U.S. Xpress beats by $0.03, beats on revenue
.03, beats on revenue
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