What happened
Shares of Vista Outdoor Inc. (NYSE: VSTO) fell 62% in 2017, according to data from S&P Global Market Intelligence, as firearm sales plunged in the United States. The company is restructuring in an effort to focus on key brands, but if the core firearm business doesn’t recover in 2018, it could be difficult for shares to regain last year’s losses.
So what
Fiscal second-quarter results give a good snapshot of why the year was so bad for Vista Outdoor’s stock. Revenue was down 14% to $586 million and would have fallen 16% on an organic basis if not for acquisitions. Even worse, adjusted earnings per share fell from $0.74 per share a year ago to $0.34 in the quarter.