Vista Outdoor raising prices again

[GunnyGene]

Don't say you weren't warned.

http://www.guns.com/2018/02/09/vista-outdoor-ammo-price-increase-set-for-april/

Vista Outdoor said ammo prices will increase for a second time this year as the industry adopts a "rational and disciplined approach" to generating sales.

Chief Executive Officer Christopher Metz told investors Thursday the company will raise prices in the low to mid single digits on certain product lines in April. Vista took a similar step in January — one Metz believes competitors will soon follow.

"I think some are a little bit slower to it than we'd like to see," he said. "It's impossible for me to see how competitors are not going to take price increases. They're going to have to."

Vista owns more than three dozen companies in firearms, ammunition and shooting accessories, including Savage Arms, Stevens, Federal Premium, Speer and American Eagle. It also holds brands in the outdoor lifestyle market.

The pricing changes following a third challenging quarter for the company. Sales topped $581 million, dipping 11 percent over last year as weak shooting sports performance drags down Vista's gains in the outdoor market, Metz said.

Shooting sports sales dropped 21 percent while the category's gross profit tanked 47 percent, according to regulatory filings.

Still, Metz expressed little concern about the impact of price increases on consumer demand or Vista's bottom line.

"We are putting forward price increases that we think are realistic and so far what we've seen from buying behavior is no real changes," he said. "So they're restricting in the marketplace and they are being received well."

Vista anticipates 2018 sales will not exceed $2.26 billion.

 

[DGW1949]

I don't shoot any of the ammo that Vista Outdoor (VO) is selling. Still though, it'll be interesting to see if and/or how much their price increases effect the rest of the market.
On the other hand, regardless of the reasons that VO is giving as to why they are raising prices, we should all know by now that inflation never sleeps...or leastways, not for long.

DGW

 

[Mus408]

So when sales are low you raise prices???

 

[gunzo]

They should slow their machinery down or have plenty of warehouse space then.

I don't think now is the time to attempt price fixing.

 

[Pps1980]

So when sales are low you raise prices???

Well, that' what morons do anyway. They raised in January and will again in March. HST at my favorite seller has gone from $19.95 to $21.95 - which with my pre-common core understanding of math is 10%.

 

[powder smoke]

I would think the price increase may be due to the price of raw materials.
In my mind that would be the only thing that makes real sense. Slow sales
is not the culprit IMHO. ps

 

[Rick Courtright]

Hi,

There's a big distributor of shotshells out here who sends me emails now and then. A common thread thru all of them the last couple of months is a decent sized price increase coming, probably next month.

Rick C

 

[mikld]

The only Federal ammo I've purchased in many, many years is their 22 lr. I, too believe it's the cost of materials that is driving up costs, but perhaps the lagging sales of their other products is a factor too...