Vista Outdoor (GEAR) 27 Jul 232024 Q1 Earnings call transcript

Good morning, and welcome to the First Quarter Fiscal Year 2024 Vista Outdoor Earnings Conference Call. My name is Carla, and I will be the operator of today's call. [Operator Instructions]. I would now like to pass the conference over to our host, Tyler Lindwall, Vice President of Investor Relations, to begin. Please go ahead when you're ready.

good Fiscal everyone Year and our us operator, Quarter First XXXX you, morning joining to for Thank Earnings Call. morning incoming Officer. Jason Keegan, Vice this Officer; Outdoor Accessories Products; me is and and Interim President, McArthur, With Andy Gulf; Chief Vishak Eric Sankaran, Nyman, CEO Interim CEO, Vanderbrink, Products; President and Outdoor of Sporting Gary Executive Chief Financial

statements will and to These begin, everyone best that Litigation these we I'd we known on call, based statements, forward-looking like Securities remind and understanding the estimates provisions be we forward-looking harbor several to of Before today's making Private our safe of information under make today. during us our assumptions statements the reflect Act. Reform

uncertainties uncertainties. also These morning we forward-looking posted factors and information risk this release for that over financial in we reconciliation the on at on We include comments Outdoor operate. our measures. have materials a and filings statements review presentation turn of which Please industries and which Vista our are to Vista subject today's it I'll website non-GAAP and investors.vistaoutdoor.com, and more you supplement Gary, these risks face note to encourage you. SEC press Outdoor's that to the

joining and Tyler, XXXX thank this you, quarter Thank we you us our as first for discuss morning results.

be line to their quarter. employees Let this during me continues begin free by we another our thanking cash and EBITDA all hard and work for top again quarter. our Vista Outdoor delivered management of flow team challenging solid Though tested,

provide mid-August at as spending for and Chief served us CEO be President. will I spin have . results, and our to Officer recently he I an Outdoor Hasbro, after new in timing. on introduce discussing most joining it Eric Products, years would himself, be Operating update XX where good Before thought will then Eric,

Products talent with to into I as he and a our the Outdoor Board look guides He Eric? Eric serving to experience on of organization. the brings future. wealth forward

Good and thanks segment. the purpose-driven incredible lead Vista more an Outdoors to to the as ways. Outdoor am the connects It's entire to honored family to I'm Vista products the also in bringing excited meaningful of And Outdoor portfolio, for consumer I have while Products people joining of opportunity CEO and job I and morning. join experience Outdoor an for of multi-brand brands, warm welcome. deeper iconic to in that company the XX a the Outdoors. companies. years growth passing the

most President was and mentioned, culture Gary media Operating responsible I As I planning strategic of business, innovation, driving leadership. and recently data for as served leading and organization Hasbro where Hasbro's and operations, Officer Chief analytics, marketing, e-commerce,

and our brand integration supported long-term for transformation, products, as our and creation Outdoor's shareholder shareholders. will I'm global new e-commerce generate value the Outdoor Vista driven traditional Products look The by months brands we strategy. I in value momentum Board our building. to outside of take Outdoor, with partnerships and segment significant Vista and days stakeholders partnering the I and teams, direct digital technology consumer media forward separation to people, ahead about excited planned and and consumer the unlock to brands highs. our

behind confidentially month, company partner be early to share expect early my October role We're in board with in roadshows Interim leading continue the followed Form Products you XX prepare earlier Day we beyond. segments or company to we our to in ready our thesis spin and expect hold spin. the wherein and Form financials, regards event a for towards to proceed to expected Products excited Thanks, our the Jason this have Eric September. in to Eric. our and by publicly our will the we October, and on Outdoor late included submitted amendment investment file Investor fiscal XX, spin as the November. second Sporting Outdoor year to XXXX will which In and spin, I an compelling Products we as the stand-alone With through CEO we

its of traded own We company Products the Shortly, well. publicly completion significant will overview strategic will Sporting continue of competitive have dedicated advantages. approach to segment allocation X will companies the publicly capital the believe a Upon Outdoor there tailored Andy provide set the our policy be unlock expected of space. Each both value. an of in focus, as X which independent spin-off be shareholder largest Outdoor of will Products dividend and spin, companies, will of traded

currently and sporting trades in ammunition mid-single-digit value fiscal with to company at EBITDA, company enterprise line a XXXX Our peers. year

While to is pure-play this being trading at EBITDA, tend enterprise value believe peers Products focused we not trade double-digit our to in Outdoor price. reflected value current

we peers. our the comparable that spin, Outdoor Products at its to Outdoor expect And trade after is more a segment will multiple

calendar quarter, expected macroeconomic Outdoor financial will be the this quarter. last leadership strides We've stable improving mentioned senior more performance. to meaningful year made all Products a on completing this the and criteria team keys spin As Outdoor Products environment establishing these

hired Outdoor CEO. Products now an have We

X despite We Our as profitability expected positive positioned to separation. themes will throughout believe highlight. the challenges. In we first quarter of One, the segment we expect and our remainder Products market to are communicated, this there has I delivered Outdoor the core improved, complete are results, and previously trend we continue discussing year. well results

by a and hold profit for Three, improvement what initiatives normalizing strategy. on disciplined in performing remaining Two, and is Sporting restructuring our a our taking Outdoor our having market can expected Products business impact. meaningful control are focusing Products and we as in

the of million. talk me let $XXX points. to quarter Sales were Now these for each

as Our we margins through were both in segments. work XX.X% adjusted a difficult EBITDA market

of million for million low adjusted leverage EBITDA adjusted well quarter quarter. sales to $XXX the our and sheet. Xx previously sales continue within Our Organic a of were prioritize ratio to strong were X.Xx, X Products EBITDA and high we margins Sporting for is within long-term communicated $XXX both XX.X%, and and now margin for Sales million, will for target balance XXs million. $XXX $XXX were was EBITDA range the our organic

We continue per this the cautious retail on of XXXs improvement. adjusted detail Talking to first down now margins and mid-XXs were quarter for depending million, X% channel open-to-buy cover Organic the X%, year. margins about and and million. more customer, financials X.X% half inventory profit as respectively. on our restructuring EBITDA quarter sales our $XXX sales is in in Andy sales improving in shortly. were or Outdoor EBITDA Adjusted retailers to $XXX at up orders, still the the fiscal the Products Products XX%. organic in EBITDA high Outdoor will were back are many quarterly and expect

Outdoor our year segment, last more we million XXXX. fourth to quarter mentioned quarter, a cost organic in and earnings reduction launched due As than of headwinds declines experienced and $XX our our improvement fiscal macroeconomic Products in program

us results strategic These are achieve results improvement and as we our in this am year positioned actions to fiscal report tactical quarter. to seeing margin we into headed I financial the meaningful happy XXXX.

points Our segment And Outdoor expense Products corporate improvement line EBITDA million basis $X margin sequentially, was posted of lower. in sequential expectations. with adjusted XXX

XXXX. in margins EBITDA will separation, In continue margins XX% EBITDA adjusted quarter, be for margins to the segment mid-teens we for believe in year corporate range this guidance improve target. Products this be range, segment XX% Outdoor adjusted fiscal Long to EBITDA costs throughout to will we necessary of term, XX%. to the should take our actions and business by the above including adjusted we our the this exceed post expect and our achieve expect second quarter, fourth We

stand-alone This traded exists publicly will compelling a company. as profile to ensure a Products transitions financial Outdoor

Let Sporting now on touch Products. me

increasing faced as goods demand. XXXX The purchasing we we achieved stable cycle This quarter quarter, Sporting margins material year prior market of we quarter, expected year-over-year our is and EBITDA XX.X% pricing normalizing difficult pressure throughout costs our from shipments fiscal a the due will and fiscal the on a anticipate Products normalized year Each first XXXX. communicated, comparison in reducing in that market year, expect business based more finished inventory. and to

XXth communicated structural versus above cycles. checks margins Day our a of in the Sporting XX% pricing, market profile new June, target dynamics as Products above We high-quality we bottom month to previous remain ammunition year to consumable at see month this and the through result of to million is $X Mix rational more Investor of expected better or normal, million. this the over at group as growing EBITDA straight checks the participants. $X like provide per last our position

a normalize well months, with Our tends in expect demand to approximately X we levels. can to excess indicating NICS directionally lag but of follow Products pre-pandemic of Sporting also checks, business that

in on will a few minutes. additional details Jason Products provide Sporting

participants nonprofit despite or goal activities continue we over or everyone surge year steadfast this create. world outdoor activities, enjoy participation The to at routines. by on Turning million continued the now as new brought bringing the be return of of that's to participants and groups our innovative whether stuck the industry engaged XXX.X We of outside and on the the brands population grow of of industry. the helping hyper-focused age base and over a remain Outdoor participation our The has the through is pre-pandemic the U.S. record and to XX% the outdoor new support pandemic X. products,

store-in-store Bass Shops. Camp placed in the wins Pro released with big and new Smoker product launches XXL Some new the Chef include, Vertical quarter first and Pro its concept

having for hoodie received Choice at Guide run lock for fishing, insulated for X GX In Consumer be women's Fishing Power Show, their their Stockingfoot Pro continues GX best leader, wader. the their awards most Awards waiters Simms a Fly including eco-friendly innovative product products best to fall and XXXX booth,

as President also and former We North new of President Salomon Manager America announced Simms. Judd, of General Jordan the

customize pack guiding Electric power its look to excited technology, cocktail heights. launch shaker additions hiking all to cooler Camelbak and the riders power of team leadership are have brand its the trails the new to ChillBak this on to areas choose hydration launched its on output to Bikes insulated Jordan iconic parameters to variable new to forward line. the or ride. him greater giving collection ability even and based and We introduced they output QuietKat

today the Golf And here in from a our cockpits. latest bike mountain FOX is leader Vishak, and brands. of one in President bike and few its his global mountain brick-and-mortar will of of safety updates apparel unit experience and equipment grand minutes fastest-growing wins cover country's motocross Accessories the opening Racing, Bentonville, business Outdoor in and announced Arkansas, retail the

Looking the remain ahead, about we excited future.

leadership for XXXX business us strong unit teams, brands, spin. solid talented foundation financial and year iconic employees success fiscal post in position Our and

that, to Jason. let me it With turn over

and pressure in goals financial off The a to remains lean everyone. Sporting team new a Gary, macroeconomic our Thank start consumers. first market strong good normalizing morning, year focused on industry-leading on quarter despite operations. its Products you, fiscal persistent is met and

million line $XXX $XXX FY of quarter high sales record with the controlling the and QX factories costs stemming $XXX 'XX previous production versus at X in FY and down and finished full from were Sporting of in year target million results improve working very together at Products expectations generate of a strong margin to sales positive our quarter million. first SG&A. EBITDA continues efficiencies in in XX.X% of multi-brand approach, expected, and and As to a 'XX. remained EBITDA mid-XX%.

demonstrated Sporting the for driving the we in market, Despite expecting consumer than rifle are and return With has the season ammunition Products normalizing ago. approach more shooting we shotgun sustained sports. pressure a profitable hunting much manufacturers demand our X anticipate patterns to of as world-class just increased cycle. and centerfire higher see input years and shells buying participation costs, We seasonal are profitable a we purchase

X events month. XX to are spikes guns their that drove of in the who users for year continued June show that practice, data, years compete past during XX million market per regularly are straight checks Indications of NICS over firearms and the several strength Despite with entered hunt. using months June this new XXXX the million

While is by industry highs, normalizing is of healthy, the in the the baseline pandemic participation. significant increase driven market

hunting We deer in than and States. hunters are market million optimistic about participation. the United XX licensed the There more are

keep country. conservation and tradition hunters billion this purchases and shooters of for wildlife and effort. throughout fund $X.X year, are this thriving, in and last what keeps yearly This the for in generated contributions wildlife be place. set we of And part firearms shooters and proud record a Hunters efforts and departments recreational to Pittman-Robertson ammunition are a

the more from same growth in shooting competitive a Target XX% period. market. in number participants largest during of a million Clay high increased in and school XXXX. League reported million by grown We continue increase XX,XXX to see XX.X school XXXX, participants record registered The Youth targets from The college than home an and XX to estimated the teams targets

To and Tipped Other the its Remington's for and further indicators build historic increases of increased demand rifle leader centerfire momentum XXXX added at hunters Core-Lokt sporting the trap for position, expand the of data showing Core-Lokt innovative want XXXX. Terminal a expands new Ascent the Core-Lokt to federal category, product has designs and offerings regional from who clays caliber its bullet. option. in modern offerings from year-over-year participation In bullet come and driving competitions iconic national nonlead as Copper is upon success and line skeet,

improve We continue schedule centerfire margin. ammunition to of to a demand assortment our gross pivot build and to production broader rifle meet

coming continues Vendor innovation customers imports sales show. and research working are and quarters. anticipate the technologies pipeline strong, for and in at next at lose remains to SHOT We on this be year's fall teams continue our Our launch consolidation ground. products development game-changing released new to shows at

seen market, which, the as a our key share is we collaborate X large gains As factories improvements. seeing. we will manufacturers normalizing what and Efficiency have in process leaders domestic on again, are historically, take continue at learnings

As a strength key these market the as instituted, for we we and sell, split build, are Vista way best will from introduce products the Outdoor. new be prepare practices

fiscal communicated for our for the we 'XX, reaching horizon goals stated, we and on are previously with focused the as year On year. aligned financial forecast

about ammunition of from months X sales market by normalizing experiencing, are be The this the what firearm market. could we for currently our continuation and

and federal enforcement our foreign. opportunities long-term and law law partners, continues a established contract enforcement and enforcement Speer domestic profitable a from to for major with that our on business both ammunition serve secured and Our Recently, bid law contracts new team military agency.

I Because and will that business, I our confidence to the deliver to pass share, margins. strategy, discuss Thank EBITDA markets, base best take customer the we with shareholder to Vishak full and continue to we expand the presence at the will market into Remington highest diverse our continue ammunition Golf expectations. the continue Vishak? and you. on team of level of multi-brand and in perform deliver Accessories expect Outdoor new to financial now our improve to have mid-XXs business. performance

I'm joined have Since care and the closely general Stanley Sankaran, the Outdoor, Vista years Prior Thank on the Craftsman & and I with for I Outdoor Sears Black President in and Jason. held experience you, leadership morning. of Outdoor, in develop and to Vista and Good durables, roles I XX at of and health Golf. to company shooting, our hunting, led brand working of iconic have GE. our Accessories over verticals. Decker consumer teams Vishak golfing enthusiasts. experience been XXXX and joining observation enhancing execute vision our industrial of

strategy, to by our want milestone the Before optics. and to celebrate expanding for turned will and innovation celebrating on X heritage XX I brand's brands homage Bushnell paying of rich anniversaries. congratulate

in in both care share effective And XXX, #X products. RCBS, creating most strategy. name gun the and cleaning turning Golf, which, the Outdoor a world's U.S. the manufactured it gun is values the founded, testament was is same to to this underpin Across in XX. Accessories our we common date, Hoppe's, that proudly turned city products

multiple to as brands deep is numerous categories. with strong of following, brand $XXX loyal and annual Best In first Outdoor heritage generate powerhouse Awards loyalty in Accessories, in advocacy The that evidenced a consumer over our revenue. million has Bushnell by and create

golf In Tour. laser XX% monitor with on becoming Golf, we our over rangefinders launch PGA have rapidly the of X the of leading using brands Foresight choice Bushnell and

educate entire and The pre system purchase. the journey an experience consumer and owning to second end-to-end the post creating enhance consumer inform, is by both

improved from to technology good NPS our and and scores customer commerce satisfaction gone online processes Our great. have as have investments in

economics go-to-market a innovate talent, to be a Vista competency with and leveraging platform and leveraging a deliver best-in-class with growth be the speed Fourth, supply to leadership and nimble when infrastructure. Third, our engine. shared and the heavily in invest chain ability innovation Outdoor by organization

shooting activity market. macroeconomic the on optimistic headwinds promotional higher hunting the current levels. are inventory short mentioned, and with we we challenged than climate, to coupled term, due remain Jason and As seeing Though usual

box are back exceed year, as remain excess expect at our and inventory improving sell-in international Until is inventory cleared. of distributors, retail, wholesale dealers we they fiscal challenged to and the levels half big channels. in While POS

sell-in, in POS us for with strategy begins future. Accessories align for well to growth our has As the Outdoor positioned

talent, platform right business the and tools business. expand to have We diversify grow deliver to and our innovation, core categories into in adjacencies our

our Examples and Ballistics. with rangefinder include X,XXX laser Bushnell our Bone Bluetooth cameras with live new [indiscernible] stream and Applied trail Collector

We are to military growth also positioned the well to decline [indiscernible] due within our businesses and tactical rate. capture Eagle

in Force recently addition Air contract to Our . contract. the is win U.S. Eagle system This was a awarded a for

Oncor's million the for fifth in Turning XXXX. grew XX.X Golf. to participation consecutive to year

Additionally, XX.X in technology's the from reached golfers the highlighting on XXXX, increasing number up of of levels, million off-course importance XXXX golf. impact XX%

of Bushnell Foresight and Day the entertainment an while through business all enablement Golf pillars. has into of years, We ecosystem, doubling EBITDA of our margins grow in Sports XXXX a X reach Investor X our ecosystem. technology combination performance strategic The term with solutions target target in driven our and be expansion ability a golfers. through long will continued created platform to to high confident remain delivering of Achievement to ambition delivering meaningful this

Bushnell innovation. on Innovation Distance established in market created golfer. golf We leadership the at our for and through leadership core is new ourselves we our maintain solutions this Measurement into expanding the to Golf, pride continue position rangefinder of in First, Devices. laser and the translating

our View Wingman Mini GPS and category. the and broader device quarter, the in segment This with we expanded trenching the lineup our and leadership Wingman

drive we has data led a players, adoption. PGA launch Second, OEM. in Ball Foresight the and coaches to of capture Club market-leading among position us monitor our Tour and The monitors leadership and as in accuracy launch category share fast-growing

successful launch program, With players player continue our technology of drive our penetration to among journey their young the into development we and UpNext ecosystem.

our continue user our enrich leverage build-out ecosystem experiences. to partnerships Third, of and the

Our game users app improvement offering Foresight tracking our Bushnell others. who performance and their our products, AI through mobile expanded metrics. have coaching and and Sportsbox scores own X.X million Cloud many over partnerships and app engage continuously platform with with AI We

and a app closes and excited onboarding [indiscernible] Outdoor opportunity our to front Golf, we experiences in enhance hunting, talented to Golf. options. Thanks I'm entertainment Accessories we and [indiscernible], it app to the general us enthusiasts. about are in addition, the tournament the simulator In both [indiscernible] I'll of and our of for team, hand improving with shooting, over observation our to golf enhancing passionate, vision executing committed are to Andy. And it that,

compared Thank are results and period, you, noted. website. results year Both Vishak, earnings will our everyone. release today on prior included My comments unless and be found webslides can on reported adjusted to and and in hello, the adjusted focus otherwise as our

Turning to Slide XX.

challenges. will in with results see delivered expectations You we market despite line

and EBITDA acquisitions. margin quarter first XX.X%, partially Organic segment, decreased The XX.X%. basis decreased in down sales gross the of points. sales Products basis million points quarter to decrease to down offset total to by million, margin and due and XX.X% primarily price $XXX Sporting XX.X%. were XX.X% Gross XXX $XXX . EBITDA Our decreased in our million. million, volume quarter was $XXX profit to an XXX for decreased $XXX the was

the for decrease margins was EBITDA was and million, in Organic XX%. of QX XX.X% $XXX quarter a organic

$X.XX. XX.X% decreased to First EPS quarter

focused Turning sheet. balance to on sharply our remain We Slide XX.

decreased continued to and the million current be top $XX leverage environment. of economic to Our up free and is sheet leading and to priority our to Net million. due X.Xx. health sequentially primary capital coming solid, paydown $XXX balance $XX net in use flow debt our million, debt our ratio remain cash Debt at

increased Slide were high to to Turning Organic by million XX. $XXX QX in caused channel. volume our QX, XX.X% sales to million. in on results Outdoor sales in primarily down $XXX Products, Within to the lower X.X% segment inventory due

driven improving million volume to The EBITDA margin we decrease gross to due across QX decreased and decline EBITDA offset Gross lower in acquisitions EBITDA gross and down $XX X.X%. of quarter business. in sequential all $XX the the organic profit was decreased quarter businesses. partially $XX was increased organic down was XX% decreased XX.X%. X.X% for to a margin for were XX% the million, EBITDA QX, million, down sales low expected. margin as in QX is by quarter to from to the organic primarily decreased Organic from Though X%. XX% profit by year-over-year,

to organic growth further improve to expect continue and the next decline We to half in of quarter year. turn the fiscal the back

previous EBITDA continue taken throughout while EBITDA actions increased in from expected, quarter sequentially to are earnings year. the million, as and to cost largely EBITDA to margin quarter. from the $X due and previous $XX X.X% the improved to the improvement improve X.X% in million EBITDA margins expected to

XX.X% categories. Sporting lower shipments $XXX sales in driven nearly Products decreased For million, to all QX across by

shipments normalized year profit XX.X% prior finished million, decreased As Lake volume and fiscal price. City the the prior driven goods of of inventory, contract in Gross the termination and in decreased reduced $XXX market QX the by to year. QX

profit decreased caused EBITDA to was million, was decreased gross costs. by by basis partially and XX.X% QX QX down points. of a XX.X%, decrease gross margin selling margin XXX XX%. decreased EBITDA $XXX offset primarily

earnings of taking guidance I and to as sequentially. last hold this performance Outdoor from by 'XX a line and our quarter, operating on we benefits other than The continue workforce see our initiated program, high and the points program translating improvements. facilities, XXX channels through and improvement Outdoor margins program. remain fiscal the in EBITDA $XX levels, end the improved income range As million a We Product Products and achieving bottom earnings impacts above to are basis of margins financial impact clear inventory more path to improvement as a our positive cost included mentioned improved which closing into reduction we reductions

improved Inorganic increased EBITDA sequentially XX%. margins from the X% to have significantly as inorganic has contribution about

XX% post cash initial dividends in expect providing the flow spin. spin, the business form on future, of focused Products the and to will a XX% post of our in we pay We approximately be period down currently dividend shareholders. compelling free pay As debt Sporting to to look out to

higher-priced is We as this and leverage our over percentage will increase down. declines paid time debt

Investor our you flow of As will approximately last recall XX% XX%. may Products generate at of business from a EBITDA our to a year, Sporting percentage as Day cash rate free

Our our restructuring fiscal for planned XXXX. corporate decreased significantly costs costs have

and to $XX million, X stand-alone compared complexity we to to the restructuring approximately the million segment. this companies of corporate spin. due XX% to dissynergies of at be We expected Outdoor expect these currently With roughly million the the that between segment $XX operate $XX will approximately total post costs be Products to cost expect our Sporting Products

Outdoor the Our segment of or will to no X Products long have leverage and time debt spin minimal at Xx term.

businesses' will shows. allocation framework road repurchasing allocation Products acquiring the and in during sharing details Outdoor be Our businesses capital to primary look behind businesses Investor capital for We additional our and forward October accretive Day shares. both opportunistically

to Page XX. on Moving

to growth full $X we $X.XXX and XXXX, I and EBITDA $XXX the Products remainder growth QX between billion. expect sales $X.XXX to XX% providing Outdoor we including sales to specific $XXX will businesses, $X.XX be XX.XX% XX.XX%, strong we XX%. Products the year of margins to previously due reaffirming range of between challenges to and of of be $X.XX EBITDA Product For expect see across XX.XX% EBITDA Product fiscal say between billion, quarter, and of acquisitions flat billion and XX.XX% to for guidance $X.XX billion sales in range What year. Similar Outdoor are guidance flow QX. slight We billion and million. sporting is and pressures outlined. due sales $X.XXX billion the total free to to Outdoor approximately $X.XXX to margins Products of in and QX EPS cash all margin Sporting not million last in can the quarterly

improvement each of see the levels, for the mid-XX% consistent be EBITDA In Outdoor Sporting guidance Products profitability in around and margins quarter expect terms by we in Products, be the sales of that range will we QX current QX. including to remainder double year. each addition, to believe fiscal in incremental margin above margins from EBITDA quarter In digits roughly

stronger back we free will We half as expense half loan and our the weaker down be in the Interest front-end term the of expect the cash the weighted over become be year. to flows year of front in fiscal year. pay

At time, are you, going Thank Eric everyone. excuse to the call. from this we

a the have please chance in first Operator, weeks he will for him . meet open the few all starts. You to questions. line after

[Operator Instructions].

from first Securities. is Our from Eric question Wold Riley B.

maybe the I them? the amount kind one in of different expected kind the Outdoor you on subsectors, inventory segments. And half given questions, the of to guess there? of [indiscernible] still kind year, margins where do deeper to impact could the each levels between half until the bit you kind Can little and then about of of of lease have the obviously, in outpace of into year. inventory X . inventory, pace On the maybe most Products, back of how out amount talked you of back Two that a inventory sell-in dive of continue decline recovery the the quick point-of-sale the terms of

Eric. let Sure. take yes, me that, Maybe

quite inventories, in shape at And retail seeing Action say, our business heavy, the our as at time. our inventories where than in of of we we're heavy point healthier Outdoor overall. in Products we're channels golf bit also business this look little general as kind wholesale So the not reasonable general Sports areas inventory on but is heavier rest in in on good are channels. Really, is the the different motocross inventory, front a what the as still seeing and has we'll

behind little on a inventory. they've -- bigger And partners box compared their retail through our partners, retail they've being been our to continued move bit able to

the including distribution little than international a our a All So retail. little bit heavier, heavier those they're channels. bit sitting at are

rest a the So besides kind at bit heavier this categories point. of we're of those the little on categories,

Jason. at then of year? need you will you kind where further pricing about just any on that, Do just the could you'll speak, I you changes be to the input have expect last with margin? Are to to Can [indiscernible] give half help retail? the of you to for Or on question to took And recently? think here. pressure be obviously, [indiscernible] needed? maybe back need kind holding us in the consumers And with that easing, I space shelf of they something think cost talk then raise you prices Do see reductions? relatively stable increase on with the power know changes for gains. pricing, those so

Yes.

space, there's see some As margin. term from -- we're coming But strategic lose far the for retail as compression, do certainly we is we smaller that quarter, which mentioned a manufacturers the reason in generally we'll some vendor to quarters, as retail normalizes, of see, starting shelf grab the do we've as vendor if the as a market go long space which pricing shelf first X because Again, pricing what last did actions. category to is want those consolidation. pricing, consolidation, to we the retailer's the open retail we're or

if we we the makes the we're we because are pressures half very if going have in go input So know compress being to, expecting is sense, that we margins. it price market grab strategic share back with will to but very,

we we case-by-case so far see. But scenario. like So in market, what the

Lake Street Our Smith comes Mark from Capital Markets. next question from

First one for me.

savings you million here quantify the more cost-cutting Just this $XX from any . in plan? can of QX

our I Yes. -- corporate don't $X it. our as $XX so We the businesses. million, that, give for we came the between -- can the is split kind on noncorporate of down about that a of quantification, I we've of XX-XX exact. the about, think certainly, talked a one we -- from what mean corporate and million say piece is that was costs And

through we're So very, very seeing we did and that, see come actions those well.

from other a sequential range. the of the talking the executed see that have the we'll on $XX of margins of as year-over-year XX% high million Products, the going accelerate increased On we $X about million. that in to that on And some north $XX our to and improvement actions the continue businesses we're the of the throughout have it's million Outdoor some part year rest improvement of their see to that end the that grow

year, which is we all rest continue go So really the in included and improving exciting. through it's that, that see the as to of we

And kind not how and you expected we've acquisitions and you and some for growth things Okay. the acquisitions, are be the have hit of question think on just when as you seen me, of about and acquisitions acquisition may here just targets maybe guys update update second learned an made new inorganic quite learnings that any these as going. that maybe these

to of Well, did year the I to over Andy of at a deteriorate part and year, last it back I'll half happy quite term, that overall, from acquisitions acquisitions we to over just we're And return But The early can we're a expected. of had take what expected. we have do for improve. value make shot year's the and comfortable saw did more But definitely very detail. these long the that acquisitions. going that to belief fiscal bit we the and is we turn full the then are results they with the the will

would getting the truly future. available, our of very, be and we They outlook there took Box would as portfolio. be very ball long-term about a of to and information contributors Simms mean, are have we obviously, gate, But yes, maybe learned. that term, are a what time. out in going we the we over rough I to long echo, And little value, just both I into at excited but I consideration. the we the Lessons are then the was more had mean, crystal happy

most has Mark, acquisitions, the just recent well of done years that We've for than we everyone our remember very the The that that just those and home done growing. business. is it's over a acquisitions Foresight more thing Bushnell is, been let's a couple have we've I And the been last I X we acquisition catalyst is I very here. And mean would [indiscernible]. add Golf on which run maybe, know to have grow. focused brand successful. But also the for

but made seeing have some since we've Heavy been and have well. So also success. Remington we're on acquisitions the pressures, are we great. on doing very well well economic they've based done smaller Shot good [indiscernible] They're the done same the And acquired. side

our that echo excited overall. on would very acquired brands. excited term, for we've But those also I So long Gary's for comments we're other we're very [indiscernible] brands

will continue we our as acquisition I So think go forward. strategy

[Operator Instructions].

next Our from Matt ROTH. Koranda from question is

in of terms just put relies in the place wanted you're a half big cuts the just full to benefit assuming from . year half segment, you need leverage the Can Is margins Products us but where to into implies comes retail Outdoor on and the outlook of that you just and it maybe on as revenue on a this you've that through How just higher level cost back back the achieving pretty of So the sell-in in wholesale attack in of the confidence from? angle, better margins. different the guide? walk get you sort hit much that channels? benefit essentially that operating

Yes. great question, That's a Matt.

think last that to I not a is will will cutting the the as which in that those we've at having it to currency year. leverage still our teams freight have in as coming purchased second but there a coming and favor leverage a that mix. cutting have negotiations we that the in is versus reason we're higher I through half done, whole. things it cost cost that just the those mean certainly cost which taking implied revenue inventory first contribute also do from is other And is businesses half certainly, are cuttings. I So All talked get $XX time is see about, growth is the also down, it's supplier those million coming we which we off doing, level. the of to the But for

but that the quarter is Products through to for to get the in in Outdoor cost segment to particular, be newer down still those the seeing. we're it come able did Inventory turning

we're done, those that new inventory half year. through the that more the that ordering which we the of freight just So as that that products, now the across in start we're to P&L the sell will contracts be we've seeing coming second start through will coming ocean, and going that's

I -- line we've do the place. we have So real. see mean of in got sight freight that these contracts are

supplier We that negotiations have happened. the have

but does as well. certainly second and So is is the sales of expect there our the it it grow of part half, leverage be that that will in we to that, part have

from to it. Got just then set? EBITDA some is margin? better How organic half lot I And terms the the targets? more for we a made about the to a know you margin tracking think of like you've OP. second much it that hit should improvement and need you're XX%. combined nice hit Simms of between or get? acquired Products Okay. Or to that the in show Looks better at function how it Curious businesses to of target Fox Does Outdoor can the factoring that improvements businesses in in what get this core the quarter. need

both as the year. business, both have is we mean, that's with through it of expect the I to be the We that accelerated Simms execute. is we with are show how line sides XX% that that happening. with a that the will happened Fox But Both continue more and do the had is of jump very will through -- what rest Bell businesses. integration number the of improve. some And lift business the been to able and integration of improvement are than go creating in rest happy Fox going to

get margins in that meet that So order expectations. to of to -- heavier isn't much a lift needs higher a like there be it to that they these

Jason, And just Sporting Products I side. on it. then could, if Got the something Okay. maybe for

the come highlight I You that in Can then for mentioned we about assume Gary where the this environment? And of mentioned sort most. just we should commodity talk where you XX% and Maybe how of this find think you're think EBITDA price think we seasonality seeing how that in -- should they through sort pressure. that or bottomed about EBITDA of trough that bottom kind next? just year? margin about late in margins that year Do range. Or maybe

we possibly obviously half a that in we're our to normalize still Matt, And margins our the that's in expect mid-XXs. that. back above that EBITDA chance goal. to go -- There's

to if be If fourth XX.X% are -- not going lead to But fourth -- would to we grab quarters. we you market year we long term, in planned have in pressures third our quarters, plan, would look pricing and thought the could did we certainly market there go we third QX, back coming again, our pricing it fiscal possibly when for we the that. We at all half. some be for down, our but coming for share the and

purpose right The so what we earlier, in those go fourth to mix are to we making know said But now we're two, that a that see like and to one, the of are I much is input grab categories some and some stronger on like far. quarter. space doing then mix and third shelf in a few offset going we that costs we up

it going plan we're to If the market it. I if what but it's go we control it So business, fourth that would sense, to happens, third grab for quarters. can we the going into look and control. in And we're And makes share.

this time. questions So have further at no registered we

that, with for So will remarks. I hand back to Gary final

to call. in our look for to conclude Thanks of so we our you to one-on-ones. forward Well, with thanks, right. and joining We're going this, talking everybody, All some much.

you joining. This concludes for Thank today's call.

disconnect now lines. may You your