Vista, Maker of Ammunition and Recreation Gear, to Sell Off Gun-Making Unit

Vista Outdoor, among the largest producers of ammunition in the United States and one of just a few publicly held firearms companies, said Tuesday that it plans to sell its gun-making business.

Vista said it would “explore strategic options” for the Savage and Stevens firearms brands as part of a broader “business transformation plan.” Savage, which was founded in 1894, began producing AR-15-style rifles last year.

Gun makers across the country have been under increasing pressure since the fatal shooting of 17 people at Marjory Stoneman Douglas High School in Parkland, Florida, in February. The rampage spurred a fast-moving push to boycott companies associated with the National Rifle Association and the firearms industry, which was already dealing with a slump in sales after the election of President Donald Trump. In March, firearms manufacturer Remington filed for bankruptcy.

Vista intends to narrow its focus on outdoors enthusiasts, its primary customer base, and to winnow its portfolio of goods to emphasize ammunition, hunting and shooting accessories, outdoor cooking products and CamelBak hydration bottles and packs.

The company had gone on an acquisition spree in recent years, adding cycling and protective-gear brands like Bell, Blackburn and Giro, and paddleboard maker Jimmy Styks. The company said it might also shed those brands as it refocuses.

“The bottom line is this: The company grew too fast and beyond its core, the portfolio became too diverse, and the pressures mounted,” Chris Metz, Vista’s chief executive, said in an earnings call Tuesday. “We were too slow to make adjustments, and the ones we did make didn’t have enough of an impact to right the ship.”

Vista’s share price fell by as much as 17 percent in early trading Tuesday, before rebounding slightly to end the day down about 13 percent. The company has lost more than 65 percent of its market value in the past two years.

Vista said it had started a strategic review of its brands in November, a month after Metz joined the company.

After the shooting in Florida, which involved an AR-15 rifle, REI, a major seller of outdoor goods, suspended orders of Vista bike helmets and water bottles because of the company’s production of assault-style firearms.

Halley Knigge, a spokeswoman for REI, said Tuesday that the retailer had not changed its relationship with Vista.

Metz said on the conference call Tuesday that although some retailers had joined REI in backing away from Vista, others had ordered even more of the company’s products.

Gun sales slumped after the 2016 presidential election, as fears that a Hillary Clinton presidency would usher in new gun control legislation dissipated with Trump’s victory. Federal background checks for prospective gun buyers, a measure of firearms sales in a country where such transactions are loosely tracked, slid 8 percent last year from 2016. Since the Parkland shooting, however, there has been an increase in background checks, which were up 14 percent in March compared with a year earlier.

Vista said it would immediately begin seeking buyers for its firearms line and the other units it plans to sell. The company, which is based in Farmington, Utah, said Tuesday that sales were down 1 percent in the first quarter, partly because of lower ammunition prices. The company’s profit tumbled 24 percent year over year.