Vista Outdoor ( NYSE: VSTO ) shares slid on Thursday after another earnings miss and trimmed guide. The latest in a series of misses proved to be the final straw for the board, which pushed out CEO Christopher Metz.
For the fiscal third quarter, adjusted EPS at $1.30 missed the mark by $0.18. A revenue report of $755M reflected a 5% year over year decline and also narrowly missed expectations. Gross profit margin decreased 378 basis points year over year as well.
“Macroeconomic pressures continue to impact consumer purchasing and retailer inventory levels remain high, interim CEO Gary McArthur said. “We are seeing positive signs emerging as consumer demand remains strong and retailers are expected to return to more normalized purchasing.”
Nonetheless, the Minnesota-based company again cut its full-year forecasts for sales and profits. Management now anticipates full-year sales to range from $3.06B to $3.08B, narrowed from a prior $3.05B to $3.15B forecast and below the $3.11B consensus. Management now sees adjusted earnings per share for the full-year in the range of $6.05 to $6.30, also narrowed from a prior $6 to $6.50 guide offered in November, which itself was lowered from prior forecasts . Analysts had anticipated $6.29 in earnings per share.
The consistent misses soured the board on the stewardship of former CEO Christopher Metz, which caused them to push for his resignation. Metz acquiesced to the request and has made himself available as an advisor for 3 months as the company searches for new leadership. Current director Gary McArthur has taken the helm of the company in his stead.
Shares of Vista Outdoor ( VSTO ) slid 6.26% on Thursday.
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Vista Outdoor CEO resigns as earnings miss sparks loss of confidence