Vista’s big move away from guns doesn’t surprise analysts

By Christen Smith

A banner sign showing off brands owned by Vista Outdoor at SHOT Show 2016. (Photo: Daniel Terrill/Guns.com)
Market analysts said this week Vista Outdoor’s decision to sell off its gun brands isn’t surprising, given the company’s foothold in the ammunition business.
“They dominate the shelf,” said Brian Rafn, gun industry analyst for Morgan Dempsey, in an interview with CNN Money. “I think that’s their legacy.”
Vista Chief Executive Office Christopher Metz told investors Tuesday “the company grew too fast and beyond its core” after acquiring more than 50 brand since splitting with Orbital ATK in 2015. A downturn in sales post-election only compounded the situation, he added.
“We can confidently say that our core lies in the hunting and shooting sports market and in adjacent activities, such as camping and hiking,” he said. “Our key consumer is someone who participates in these and other outdoor activities.”
Vista owns companies in firearms, ammunition and shooting accessories, including Savage Arms, Stevens, Federal Premium, Speer and American Eagle. It also holds brands in the outdoor lifestyle market. In the weeks after taking over Vista last year, Metz warned quick, “decisive” action laid ahead in order to stabilize the company amid double digit earnings losses.
So far, the company announced it

Source: Guns.com