Vista Outdoor: Competitor prices will rise in 2018

By Christen Smith

Vista Outdoor top executives predict the lingering post-election market conditions will finally lift in 2018. (Photo: Vista Outdoor/Facebook)
Top executives for Vista Outdoor said last week the industry’s widespread promotional activity will end in 2018 as competitors discuss price increases.
The forecast comes after the company admits lingering post-election market conditions haven’t lifted as quickly as anticipated.
“We are not yet seeing the recovery that we expected to see,” said Chief Financial Officer Stephen Nolan during a conference call with investors Thursday. “Shooting sports has always been a cyclical industry with periodic downturns lasting anywhere from 12 to 24 months. While we may not be at the bottom as of yet, we believe that we are very close and we anticipate that the market will show returns to growth over the next 18 months.”
Vista Outdoor’s second quarter earnings declined 25 percent, according the company’s most recent filing with the Securities and Exchange Commission. Sales likewise dipped 16 percent, the company’s second double digit loss so far this year. Its shooting sports segment generated $296 million, a 19 percent decline over 2016 — the biggest on record for gun sales. Net profit for the segment nosedived 38 percent, Nolan said.
“A number of our competitors have talked about price

Source: Guns.com