2023-04-03 16:18:39 ET
Vista Outdoor ( NYSE: VSTO ) announced a +$50M cost reduction and earnings improvement program. The Minnesota-based retailer said the program will include office closures, spending cuts, EBIT improvements and headcount reductions across brands and corporate teams. The changes are being implemented in response to elevated retail inventory levels, rising interest rates and inflation, which have pressured VSTO's recent earnings results and impacted the outlook for FY24.
At the corporate level, Vista Outdoor ( VSTO ) said it took steps to streamline its corporate costs and operating model by reducing headcount, cutting outside spend and redeploying resources to maximize brand autonomy and corporate scale. The changes are anticipated to drive efficiencies in the deployment of corporate services and enable more results from Supply Chain, E-commerce, Licensing and M&A Centers of Excellence.
Looking ahead, Vista Outdoors ( VSTO ) expects the changes will help the company compete in the current challenging economic environment and prepare for the separation of its Outdoor Products and Sporting Products segments into two independent, publicly traded companies later in the year.
Read the full Vista Outdoor SEC filing.
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Vista Outdoor to cut jobs and close offices in bid to boost earnings