Earnings release
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JOHNSON OUTDOORS REPORTS FISCAL SECOND QUARTERRESULTS RACINE, WISCONSIN, May 2, 2025....Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global innovator of outdoorrecreation equipment and technology, today announced operating results for the Company’s second fiscal quarter endingMarch 28, 2025. “Our second quarter results reflect continued market challenges and a cautious retail and trade environment. However, we sawpositive results from new products in Humminbird and Jetboil, underscoring the critical importance of our ongoing investmentin innovation,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “Looking ahead, tariffs will impact ourbusiness, despite the fact that we are an American company with U.S.-based manufacturing and operations. We are workingon multiple paths to mitigate as much of the tariff impact as possible. Our sustained focus on our strategic priorities, as wellas leveraging our strong debt-free balance sheet and cash position, will help us as we navigate the uncertain economicenvironment ahead.” SECOND QUARTER RESULTSTotal Company net sales in the second quarter declined4 percent to $168.3 million compared to $175.9 million in the prior yearsecond fiscal quarter. Fishing revenue decreased 3 percent due to continued market and macroeconomic dynamics affecting consumers Camping & Watercraft Recreation sales were down 12 percent, with growth in Jetboil partially offsetting the declines inwatercraft and the exit of the Eureka! business Diving sales decreased 7 percent, primarily due to softening market demand and economic uncertainty across allgeographic regions Total Company operating profit was $4.9 million for the second fiscal quarter versus operating loss of $(0.25) million in theprior year second quarter. Gross margin was relatively flat at 35.0 percent, compared to 34.9 percent in the prior year quarter.Operating expenses of $54.0 million decreased $7.7 million from the prior year period, due primarily to lower sales volumesbetween quarters, as well as lower promotions expense, and decreased expense on the Company’s deferred compensationplan. Profit before income taxes was $4.2 million in the current year quarter, compared to $3.0 million in the prior year secondquarter. The improvement in operating profit noted above was partially offset by an increase in Other expense ofapproximately $3.4 million due primarily to a decline in earnings on the Company’s deferred compensation plan. Net incomewas $2.3 million, or $0.22 per diluted share, versus $2.2 million, or $0.21 per diluted share in the previous year’s secondquarter. The effective tax rate was 44.6 percent compared to 28.4 percent in the prior year second quarter. YEAR-TO-DATE RESULTSFiscal 2025 year-to-date net sales were $276.0 million, a 12.2 percent decrease over last year’s first fiscal six-monthperiod. Total Company operating loss declined to $(15.3) million, compared to $(0.2) million in the prior fiscal year-to-dateperiod. Gross margin decreased slightly to 33.0 percent, compared to 36.3 percent in the prior year-to-date period. Operatingexpenses were $106.4 million in the six-month period ending March 28, 2025, a decrease of $8.1 million from the first half ofthe prior year due to the same factors noted above for the quarter. Loss before income taxes for the year-to-date period was $(14.8) million, versus profit before income taxes of $8.9 million inthe first six months of the prior year. In addition to the decline in operating profit, Other expense increased by $8.1 million,primarily due to a decrease in earnings on the Company’s deferred compensation plan of approximately $5.9 million. Inaddition, the prior year-to-date period included a gain on the sale of a building of approximately $1.9 million. Net loss duringthe first fiscal six months was $(13.0) million, or $(1.26) per diluted share, versus net income of $6.1 million, or $0.59 perdiluted share, in the prior fiscal year-to-date period. The Company’s effective tax rate decreased to 12.1 percent in thecurrent year versus 31.4 percent in the prior year six-month period. OTHER FINANCIAL INFORMATION The Company reported cash and short-term investments of $94.0 million as of March 28, 2025. Depreciation and amortizationwere $10.0 million in the six months ending March 28, 2025, compared to $9.9 million in the prior six-month period. Capitalspending totaled $7.4 million in the current six-month period compared with $10.2 million in the prior year period. In February2025, the Company’s Board of Directors approved a quarterly cash dividend to shareholders of record as of April 10, 2025,which was payable April 24, 2025. “We continued to drive our inventory levels lower, and our cash balance remains healthy. Although we’ve been focused onstrategically managing costs while also making investments to strengthen the business, the evolving macroeconomic situationbrings additional challenges. We’re working through short- and long-term strategies to mitigate the tariff-related impact ofpotential increases in the costs of our raw materials and purchased components,” said David W. Johnson, Vice President andChief Financial Officer. WEBCAST The Company will host a conference call and audio web cast at 11:00 a.m. Eastern Time on Friday, May 2, 2025. A live listen-only web cast of the conference call may be accessed at Johnson Outdoors’ home page or . A replay of the call will beavailable for 30 days on the Internet.
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About Johnson Outdoors Inc. JOHNSON OUTDOORS is a leading global innovator of outdoor recreation equipment and technologies that inspire more people toexperience the awe of the great outdoors. The company designs, manufactures and markets a portfolio of winning, consumer-preferredbrands across four categories: Watercraft Recreation, Fishing, Diving and Camping. Johnson Outdoors' iconic brands include: OldTown canoes and kayaks; Carlisle paddles; Minn Kota trolling motors, shallow water anchors and battery chargers; Cannondownriggers; Humminbird marine electronics and charts; SCUBAPRO dive equipment; and Jetboil outdoor cooking systems. Safe Harbor StatementCertain matters discussed in this press release are “forward-looking statements,” intended to qualify for the safe harbors from liabilityestablished by the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact are consideredforward-looking statements. These statements may be identified by the use of forward-looking words or phrases such as "anticipate,''"believe,'' "confident," "could,'' "expect,'' "intend,'' "may,'' "planned,'' "potential,'' "should,'' "will,'' "would'' or the negative of those termsor other words of similar meaning. Such forward-looking statements are subject to certain risks and uncertainties, which could causeactual results or outcomes to differ materially from those currently anticipated. Factors that could affect actual results or outcomesinclude the matters described under the caption “Risk Factors” in Item 1A of the Company’s Form 10-K filed with the Securities andExchange Commission on December 11, 2024, and the following: changes in economic conditions, consumer confidence levels anddiscretionary spending patterns in key markets; uncertainties stemming from political instability (and its impact on the economies injurisdictions where the Company has operations), uncertainties stemming from changes in U.S. trade policies, tariffs, and the reaction ofother countries to such changes; the global outbreaks of disease, such as the COVID-19 pandemic, which has affected, and maycontinue to affect, market and economic conditions, along with wide-ranging impacts on employees, customers and various aspects ofour operations; the Company’s success in implementing its strategic plan, including its targeted sales growth platforms, innovation focusand its increasing digital presence; litigation costs related to actions of and disputes with third parties, including competitors; theCompany’s continued success in its working capital management and cost-structure reductions; the Company’s success in integratingstrategic acquisitions; the risk of future write-downs of goodwill or other long-lived assets; the ability of the Company’s customers tomeet payment obligations; the impact of actions of the Company’s competitors with respect to product development or enhancement orthe introduction of new products into the Company’s markets; movements in foreign currencies, interest rates or commodity costs;fluctuations in the prices of raw materials or the availability of raw materials or components used by the Company; any disruptions in theCompany’s supply chain as a result of material fluctuations in the Company’s order volumes and requirements for raw materials andother components, or the demand for those same raw materials and components by third parties, necessary to manufacture and producethe Company’s products including related to shortages in procuring necessary raw materials and components to manufacture andproduce such products; the success of the Company’s suppliers and customers and the impact of any consolidation in the industries ofthe Company’s suppliers and customers; the ability of the Company to deploy its capital successfully; unanticipated outcomes related tooutsourcing certain manufacturing processes; unanticipated outcomes related to litigation matters; and adverse weather conditions.Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements andare cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are onlymade as of the date of this filing. The Company assumes no obligation, and disclaims any obligation, to update such forward-lookingstatements to reflect subsequent events or circumstances. -- # # # # # -- JOHNSON OUTDOORS INC. ® ® ® ® ® ® ®
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(thousands, except per share amounts) THREE MONTHS ENDED SIX MONTHS ENDED Operating results March 28, 2025 March 29, 2024 March 28, 2025 March 29, 2024 Net sales $ 168,349 $ 175,856 $ 275,998 $ 314,500 Cost of sales 109,483 114,425 184,949 200,215 Gross profit 58,866 61,431 91,049 114,285 Operating expenses 53,965 61,684 106,387 114,492 Operating profit (loss): 4,901 (253) (15,338) (207) Interest income, net (557) (817) (1,543) (1,977) Other expense (income), net 1,300 (2,448) 974 (7,141) Profit (loss) before income taxes 4,158 3,012 (14,769) 8,911 Income tax expense (benefit) 1,854 856 (1,783) 2,800 Net income (loss) $ 2,304 $ 2,156 $ (12,986) $ 6,111 Weighted average common shares outstanding - Dilutive 10,272 10,234 10,272 10,225 Net income (loss) per common share - Diluted $ 0.22 $ 0.21 $ (1.26) $ 0.59 Segment Results Net sales: Fishing $ 134,891 $ 138,608 $ 217,363 $ 249,100 Camping & Watercraft Recreation 17,852 20,248 27,303 30,974 Diving 15,820 16,924 31,504 34,402 Other / Eliminations (214) 76 (172) 24 Total $ 168,349 $ 175,856 $ 275,998 $ 314,500 Operating profit (loss): Fishing $ 9,469 $ 7,427 $ 1,208 $ 18,956
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Camping & Watercraft Recreation 1,246 1,223 600 (497) Diving (413) (298) (1,321) (876) Other / Eliminations (5,401) (8,605) (15,825) (17,790) Total $ 4,901 $ (253) $ (15,338) $ (207) Balance Sheet Information (End of Period) Cash, cash equivalents and short-term investments $ 93,951 $ 84,270 Accounts receivable, net 116,776 129,345 Inventories, net 180,057 249,201 Total current assets 407,079 477,329 Long-term investments — 2,157 Total assets 624,474 691,678 Total current liabilities 104,833 108,532 Total liabilities 183,372 191,589 Shareholders’ equity 441,102 500,089