Buoyed by robust gains across its Fishing, Watercraft Recreation and Camping segments, Johnson Outdoors reported a significant hike in earnings in its first-quarter ending January 1.

Net income was $19.8 million or $1.96 per share, nearly triple its earnings of $6.4 million, or 64 cents, a year ago. Operating profit rose 247 percent to $23.6 million from $6.8 million in the prior-year first quarter.

Sales climbed 29.4 percent to $165.7 million. The gains were driven by volume rather than notable gains in average-selling prices.

Gross margin reached 45.3 percent, up 340 basis points from last year’s first quarter, primarily driven by higher absorption of fixed costs due to increased sales volume and an improved product mix.

Operating expenses rose due to higher volume-related costs and the impact of favorable market conditions on the company’s deferred compensation plan assets resulting in approximately $1.4 million of higher deferred compensation expense in the current year quarter, offset by a gain in other income related to marketing the assets to market.

“First fiscal quarter sales reflect the continued impact of the COVID-19 pandemic, driving high demand for outdoor recreation products that began in the second half of our 2020 fiscal year,” said Helen Johnson-Leipold, chairman and CEO, on a conference call with analysts. “Consumer demand remained strong during the quarter, and customers replenished their depleted inventory levels in anticipation of the upcoming warm weather recreation season.”

Fishing Segment Boosted By Humminbird’s MEGA 360 Line
In the Fishing segment, sales expanded 27.9 percent to $127.0 million from $99.3 million. Operating profits vaulted 84.9 percent to $27.8 million. Fishing brands include Minn Kota, Humminbird and Cannon.

Johnson-Leipold said, “Demand remained high across all brands, and we continue to build on a powerful legacy of innovation that drives both seasoned anglers and new anglers to Johnson Outdoors for a great fishing experience.”

Humminbird’s MEGA 360 Imaging Transducer continues to do well in its second year on the market. Humminbird’s team continues to enhance its One-Boat Network, enabling anglers to control their connected Minn Kota trolling motor, Talon and Raptor shallow water anchors and Cannon downriggers directly from their Humminbird unit. Humminbird also recently started shipping a new generation of HELIX fish finders supported by MEGA Imaging Plus in various screen sizes. The Minn Kota brand continues to reap positive sales momentum with the Raptor shallow water anchor.

Said Johnson-Leipold, “Looking ahead, sustaining our innovation and technology leadership position in the fishing market remains a top priority, and we have more exciting new products in the pipeline.”

Watercraft Recreation Boosted By Strong Demand For Old Town Sportsman Line
In the Watercraft Recreation segment, sales rose 158.7 percent to $12.4 million from $4.8 million a year ago. The segment showed an operating profit of $1.07 million against a $1.6 million loss a year ago.

Johnson-Leipold said Watercraft Recreation, which includes the Old Town, Ocean Kayak and Carlisle brands, saw strong demand across all product lines and continued enthusiasm for the Old Town Sportsman line of power paddles and paddle fishing kayaks launched last fiscal year. She said, “The flagship model of this innovative new line, the award-winning Sportsman AutoPilot 120, uses a GPS-enabled Minn Kota trolling motor to propel, steer and anchor the kayak with its Spot-Lock technology, providing kayak anglers with hands-free fishing. We hope to continue the positive momentum of the Sportsman Line in its second year on the market.”

Camping Sales Jump 62 Percent
Camping segment sales grew 62.3 percent to $12.2 million from $7.5 million. The segment showed an operating profit of $2.8 million against an operating profit of $66,000 in the same period a year ago. The segment includes Eureka! Tents, camping furniture, camp stoves, sleep systems, and Jetboil outdoor cooking gear.

“Camping is one of the most accessible outdoor activities that people have been able to do safely and both our Jetboil and Eureka! brands have benefited from the surge of participation in the activity, and our hard work in understanding our target consumer is paying off,” said Johnson-Leipold. “Demand for Eureka! Tents and stoves continue to beat expectations and Jetboil, the technology leader in portable outdoor cooking systems, recently launched an exciting innovation called the Stash. The Stash is the lightest all-in-one backpack installed system that Jetboil has made, and we are excited for our newest technology to hit online and retail shelves very soon.”

ScubaPro Hurt By Travel Restrictions
The one declining segment continues to be Diving as the ScubaPro brand continues to be impacted by travel restrictions facing diving destinations.

Sales in the Diving segment reached $14.1 million in the quarter, down 14.4 percent from year-ago levels. The segment showed a loss of $341,000 against earnings of $205,000 a year earlier.

Said Johnson-Leipold, “While we are taking steps to simplify our Diving business during this challenging time, our team continues to focus on investing in innovation and enhancing our digital presence globally with new European websites and e-commerce. These efforts will ensure ScubaPro is in a strong position for the future.”

In the Q&A session, Johnson-Leipold said it’s still uncertain how many new consumers have embraced outdoor activities during the pandemic. She said, “We assume that new consumers are coming in, as well as more active participation by existing consumers, and I think we could say that across all the outdoor spaces that we’ve seen growth in. So, until we get some participation data from syndicated sources, which have a lag time, I think at this point, it’s truly an assumption, but we definitely feel that there are some new participants in the market across the board.”

Asked about supply chain constraints, David Johnson, VP and CFO, said, “Like a lot of other companies, we’re seeing longer lead times and difficulty getting some product out of Asia for electronic components, in particular, and then logistics constraints as everyone’s heard about, the port and getting shipping containers here on time. Right now, we seem to be in OK shape. It hasn’t necessarily affected us currently, but we’re looking into the season, and this is something we’re trying to actively manage.”

Photos courtesy Johnson Outdoors / Old Town Kayaks, JetBoil