Ammo Prices Drop: Vista Outdoors Looks to Consumer Internet Sales
By Dean Weingarten
Arizona -(Ammoland.com)- Vista Outdoors is one of the major players in ammunition production in the United States and the world. It owns CCI and Federal.
With the decrease in demand for ammunition and for sporting goods, its stock price has dropped. A year ago it was over $50 per share. This spring it fell below $20 for a brief period.
Most of the drop is likely due to a decreased demand for ammunition. Vista has a strategy to increase ammunition sales, or at least to keep market share and increase profits.
Independent retailers and e-commerce will play a key role in helping Vista Outdoor regain momentum as it faces sluggish markets for ammunition and the products it sells for shooting, camping and other recreation.
That approach was unveiled Thursday in a conference call for stock market analysts after Vista Outdoor reported a dramatic drop in net income for April, May and June.
Net income was $16.6 million for the three months ending July 2, compared with $29.1 million for the same time last year at the company that employs about 1,375 people in its Lewiston ammunition operations, which have been shrinking through attrition.