By Bloomberg – Re-Blogged From Newsmax
For the last few weeks, shooting enthusiasts may have been paying more for bullets without realizing it. Vista Outdoor Inc., which owns a variety of firearms and ammunition companies, recently announced that it had increased the price of ammunition last month.
In an earnings call held last week, Chief Executive Officer Chris Metz told investors that the company first increased the price of ammunition in early January. A second price increase will come in April, he added.
The firearms industry has been experiencing a downturn. Stock prices have dwindled and sales are down year-over-year, based on figures from the National Instant Criminal Background Check System, a barometer for firearms sales.
Vista reported sales of $581 million, an 11 percent decrease from the previous year, but still beat expectations. Since its earnings report on Feb. 8, shares have soared 14 percent.
Metz believes the ammunition price increase will ripple through the industry as competitors follow suit. Customers have been “very understanding” of the price increases so far, he said.