Never heard of REI, but I will continue to buy CCI primers as long as they are available. Carry on....

They hate bicyclists, they are selling Bell, those bastards!

I use REI as someplace that has everything in stock generally at premium prices), so I'll go there to try things on and figure out sizing, then I order from my standard vendors.

Honestly, that sounds like an intelligent business move for VSTO. It has been somewhat apparent in the past few years that, barring the threat of confiscation driving purchases, the gun manufacturing industry is over-supplied and in need of consolidation. Basically, the market doesn't really support the number and variety of manufacturers we have right now. Plus, the demand for actual firearms has been more volatile and ,thanks to the supply situation, often had worse margins than the accessories have. Ammo and cleaning supplies are a more steady business and they make more money. Just think about how much money Vista likely makes selling a single $400 savage-rifle-and-scope package vs. $400 worth of M-Pro-7.

Seems like they want to invest in the part of the business that has been more consistently profitable and has way better margins. Makes perfect sense to me. VSTO is publicly traded, so it makes sense that they would want to spend their money on segments where they can get the best return on investment in the shortest amount of time. Hell, the fact that they are keeping the ammo business alone shows they aren't afraid of being associated with guns. They are just focused on how to make the most money for the time and capital invested.

Plus, it just looks like they want to sell it off, not fold it entirely. Unlike Remington, Savage might be in a good enough state to actually sell. Maybe not as I think the industry still has an over-supply problem, but Savage has been managed better than Big Green over the past few years so there is at least a chance. Heck, I used to own stock in ATK, now Vista, partially because they showed a willingness to adapt to the market. Now, if they 'spin the business off' and saddle it with tons of debt in the process, THEN I will worry they are just going to kill Savage. Until then, I'm not going to worry.

- Bret

quote:

Originally posted by lkdr1989:
If you want to put a kink in REI's virtue-signalling tail, write them and ask if they're going to stop selling Black Diamond products since Clarus - formerly known as Black Diamond also owns Sierra Bullets

Bingo.
As a sales rep in the outdoors, it's pretty amusing hearing what some of the REI staffers are saying. The old timer employees just shake their head and some get pissed-off with all the virtue signaling, recognizing it as a lot of hot-air. The younger employees get all excited and want to 'discuss it'. I ask them, 'what about dropping BD because their parent owns Sierra' blank faces..crickets. Meanwhile, the old timers turn-away and smile.

Yesterday was my annual big buy day for reloading supplies. I spent north of $600 on bullets, all but one brand was Hornady.

tac

quote:

Originally posted by sadlerbw:
Honestly, that sounds like an intelligent business move for VSTO. It has been somewhat apparent in the past few years that, barring the threat of confiscation driving purchases, the gun manufacturing industry is over-supplied and in need of consolidation. Basically, the market doesn't really support the number and variety of manufacturers we have right now. Plus, the demand for actual firearms has been more volatile and ,thanks to the supply situation, often had worse margins than the accessories have. Ammo and cleaning supplies are a more steady business and they make more money. Just think about how much money Vista likely makes selling a single $400 savage-rifle-and-scope package vs. $400 worth of M-Pro-7.

Seems like they want to invest in the part of the business that has been more consistently profitable and has way better margins. Makes perfect sense to me. VSTO is publicly traded, so it makes sense that they would want to spend their money on segments where they can get the best return on investment in the shortest amount of time. Hell, the fact that they are keeping the ammo business alone shows they aren't afraid of being associated with guns. They are just focused on how to make the most money for the time and capital invested.

Plus, it just looks like they want to sell it off, not fold it entirely. Unlike Remington, Savage might be in a good enough state to actually sell. Maybe not as I think the industry still has an over-supply problem, but Savage has been managed better than Big Green over the past few years so there is at least a chance. Heck, I used to own stock in ATK, now Vista, partially because they showed a willingness to adapt to the market. Now, if they 'spin the business off' and saddle it with tons of debt in the process, THEN I will worry they are just going to kill Savage. Until then, I'm not going to worry.

- Bret

firearms (new) avg between 8-15% gross,
used up to 50%

accessories are usually 25%+ sometimes up to 50% +.

clothing is 75-100%, gross, eveb the clearance stuff has gross margin in it,

quote:

Originally posted by SFCUSARET:
It would be nice to read the referred article without having to subscribe to the Wall Street Journal!

Here you go:

Vista Outdoor Aims to Exit Several Brands, Including Firearms

Company will still make cooking ware and keep its ammunition business

By Doug Cameron and Cara Lombardo

Vista Outdoor Inc. (VSTO -1.36%) said it would stop making firearms as the nation’s largest maker of ammunition plans to pare back a sprawling portfolio tied to the $90 billion-a-year outdoor-pursuits market.

The maker of Federal Premium bullets and CamelBak water bottles plans to sell its Savage Arms and Stevens firearms brands as part of a strategic review.

The company said the move wasn’t tied to actions by some major retailers that said they would halt sales of all the company’s products following a Florida high-school shooting in February.

“Honestly, it didn’t play into it at all,” said Chief Executive Chris Metz in an interview.

Mr. Metz said Savage Arms would require too much investment to prosper as a full-service firearms maker, noting its lack of handguns—half the national market—and slow rollout of popular modern sporting rifles, also known as assault-style weapons. The rifles remain among the industry’s biggest sellers despite the backlash caused by their involvement in many mass shootings.

The former Black & Decker and Arctic Cat executive, who joined the company in October, said brands built up through a series of acquisitions by the previous management team had failed to gel.

That dented sales and margins over the past two years, wiping out two-thirds of Vista Outdoors’ market value as industry oversupply and bankruptcies among retailers have hit the broader shooting-sports industry.

The company said Tuesday it would focus on business lines including ammunition and shooting accessories, water bottles and outdoor cooking ware. It will also explore the sale of brands including Bell bike helmets, Giro snow goggles, Blackburn handlebar tape and Jimmy Styks paddle boards.

Shares in Vista Outdoor ended down more than 13% as fiscal fourth-quarter sales fell 1% and profit dropped 24% from a year ago. The company also guided its full-year profit sharply below analysts’ forecasts.

In the wake of the school shooting in Parkland, Fla., that left 17 people dead, student survivors have started a movement for greater gun control. Two students from Marjory Stoneman Douglas High School explain how social media, crowdfunding and political activism have helped spread their message. Photo: Getty Images

Vista Outdoor, like other gun makers, has faced a backlash since the February shooting that left 17 people dead in Parkland, Fla., with increased public concern over gun violence shining a light on companies that make firearms and how retailers sell them.

Outdoor-gear retailer REI Inc. said in March it placed a hold on future orders of any Vista Outdoor products, citing the company’s firearms division and its lack of a public statement outlining “a clear plan of action.”

Walmart Inc., Kroger Co. and Dick’s Sporting Goods Inc. were among retailers that said after the shooting they would no longer sell guns to anyone under 21 years old. Investors and asset-management companies such as BlackRock Inc. have also been scrutinizing their holdings’ connections to gun makers.

Mr. Metz said talks continued with REI and others, but didn’t predict when or if its products would return to the retailer’s shelves. REI said it hasn’t resumed selling any Vista Outdoor products following its announcement of plans to exit firearm production.

He said the reaction to the REI move has been mixed, with other independent retailers stepping in to take additional stock.

Industrywide gun sales remain elevated by historical standards, but firearms makers suffered a big drop in sales as they resorted to heavy discounting to work through a huge surplus of inventory built up ahead of the 2016 U.S. presidential election.

The company is already in the process of selling its sporting eyewear brands, and Mr. Metz said there was a lot of buyer interest expected in the other assets, which it hopes to exit by the end of fiscal 2020.

“We’re in no hurry to sell these assets,” he added.

Vista Outdoor said in its latest quarter it was hurt by lower ammunition prices and more promotions and rebates, though firearm sales rose from a year ago. The company’s full-year per-share profit guidance of 10 cents to 30 cents was well below the 87 cents a share expected from analysts.

Mr. Metz said Tuesday the shooting-sports and related outdoor-products market appears to be improving, with reduced discounting and rising demand from wholesalers and consumers, and that the company anticipates a return to growth in the second half of its current fiscal year.

Vista, based in Farmington, Utah, was spun off in early 2015 by defense contractor Alliant Techsystems Inc. It was already the largest U.S. commercial ammo maker by revenue, with brands such as Federal Premium, and diversified into firearms before the spinoff with acquisitions including Savage Arms.

Write to Doug Cameron at doug.cameron@wsj.com and Cara Lombardo at cara.lombardo@wsj.com