Vista Outdoor Inc.

consumer demand to be slower for the rest of the calendar year 2023, resulting in channel partners remaining cautious and not increasing their purchasing behavior until calendar year 2024. This dynamic is causing slower than expected inventory sell-in, which, coupled with promotional pressures as we work to sell through our high-priced inventory positions during the holiday season, is driving down profitability in Q3. We expect sales to decline in the high single-digit range in Q3 versus the prior year period, returning to low single-digit growth in Q4 versus the prior year period. The year-over-year growth in Q4 will be driven by exciting new product introductions in our golf business, as well as more favorable purchasing patterns in our action sports businesses versus the prior year. Due to the increased promotional environment of the holiday season and moving through the higher price inventory in Q3, we expect segment adjusted EBITDA margins to be in mid single digits, returning to high single digits in the fourth quarter as we reduce promotions and start to see the impact of our Gear Up program read through. With the expected improvement in outdoor products to end fiscal year 2024, which includes returning to organic growth and generating segment adjusted EBITDA margins in the high single digits in Q4, Combined with our gear-up profitability improvement program, we see Revolus adjusted EBITDA dollars on a standalone basis to double in fiscal year 2025. We are also still gaining market shares in key categories, which positions us well for a strong start to fiscal year 2025, as we expect demand to return and channel partners to begin purchasing at normal rates again. Thank you, everyone. Operator, please open up the line for questions.

Thank you. If you would like to ask a question, please press star then one on your telephone keypad. If you change your mind at any time, please press star then two. We now have Matt Caranda of Roth MKM. Your line is open.

Hey guys, good morning. Thanks for taking the questions. Just first on the higher level sale dynamics involved with the MO business. Any potential for another buyer to emerge now that that transaction is public? And then just could you maybe help us understand the next steps of CFIUS approval as it pertains to the transaction?