More Outdoor Brands to Move to Fox Racing HQ Amid Revelyst Layoffs, Office Closures
The headquarters of Fox Racing in Irvine, California, will become the hub of parent Revelyst’s Adventure Sports division as further consolidation leads to office closures and layoffs across the Revelyst organization.
The news was announced Friday as Revelyst, currently a part of Vista Outdoor Inc., trims expenses and streamlines its business ahead of its spinoff as a standalone, outdoor-focused entity.
The move to consolidate Revelyst’s entire Adventure Sports group in Irvine, where the head of the division, Jeff McGuane, is based follows last year’s news that Bell and Giro would move to Irvine. Friday’s news adds CamelBak, QuietKat Electric Bikes, Blackburn, and other brands to the Irvine office.
The strategy comes with office closures and layoffs for the broader Revelyst organization.
“While our business is stable, headwinds exist, and we need to make changes to grow and meet the financial plans we’ve established and believe in,” Revelyst CEO Eric Nyman said in a statement Friday.
Nyman went on to say, “Previous ways of working need to be challenged and adjusted to position us to where we aspire to be. The decisions to close offices and reduce headcount aren’t taken lightly, and though they are intended to position us for the future, we understand that they are difficult in the immediate.”
Revelyst did not specify the number of layoffs that will occur across offices. A spokesperson for parent Vista did not immediately respond to a request for comment Friday.
Adventure Sports is one of three divisions under Revelyst. The other two are Precision Sports and Technology and Outdoor Performance.
Precision Sports, which includes the Foresight Sports and Bushnell Golf businesses, will have operations based out of San Diego. Meanwhile, Outdoor Performance, with brands such as Simms Fishing Products and Bushnell, will be consolidated in Bozeman, Montana.
The latest update is part of a plan Vista Outdoor and Revelyst disclosed in November called Gear Up. It’s aimed at creating synergies across everything from supply chains and back-end technologies to real estate.
Gear Up, combined with other restructuring measures, is estimated to cut about $125 million in costs.
Revelyst, Vista Outdoor Q3 Update
Sales of Revelyst were off 10% to $317 million in the fiscal third quarter ended Dec. 24 as the group dealt with a slowdown in consumer spending, driven by higher interest rates and a highly promotional selling environment.
Adjusted EBITDA for Revelyst in the quarter fell 53% to $15 million, while operating income fell 121% to a loss of $3 million.
Overall, Vista Outdoor sales fell 10% to $682 million. The business swung to a net loss of $148 million in the December quarter compared to net income of $65.15 million a year earlier.
The Revelyst business has been working through inventory via discounting to help boost sales, an effort Nyman told analysts during a call Thursday has been “successful.”
The CEO reported the group’s inventory was trimmed by about 25% on a year-over-year basis in the quarter as a result of its promotional measures.
Nyman also indicated a shift in sentiment for both direct and wholesale.
“We have observed marketplace retail and wholesale channels (are) healthier in recent months,” he said. “Channel inventory weeks on hand has come down year over year and our brands are seeing signs of optimism in the channels compared to more cautious behavior that we experienced in calendar year 2023. We expect this dynamic to translate into future results now that channel inventory is in a healthier position.”
Revelyst sales are estimated to be $1.275 billion to $1.325 billion for the full fiscal year.