Johnson Outdoors Inc. reported sales inched up one percent in the fiscal fourth quarter ended October 1 but ended the fiscal year with a 26 percent gain to reach record annual sales levels. In the fourth quarter in Fishing, its largest segment, softer sales offset gains at its other three segments, Camping, Watercraft Recreation and Diving.

The recent quarter’s nearly-flat sales performance reflects tough comparisons against the year-ago period as people actively sought ways to recreate outdoors during the early stages of the pandemic, with many households quarantining. In the 2020 fourth quarter, sales surged 58 percent.

Sales in the latest quarter reached $166.3 million, up from $164.7 million a year ago. Operating profit fell 30.5 percent to $13.6 million, while net profits were down 55.4 percent to $6.9 million.

Fishing segment sales were down 2.9 percent to $110.6 million, while operating profit was off 39.5 percent to $14.9 million. The segment includes Minn Kota fishing motors, batteries and anchors, Cannon downriggers, and Humminbird marine electronics and charts.

Camping segment sales reached $18.7 million, up 20.3 percent. Operating earnings grew 40.9 percent to $3.95 million. The segment includes Jetboil outdoor cooking systems and Eureka! camping and hiking equipment.

In the Watercraft Recreation segment, sales were up 5.0 percent to $16.5 million, operating profits advanced 9.0 percent to $1.84 million. The segment includes Old Town canoes and kayaks, Ocean Kayak and Carlisle paddles.

Diving segment sales were up 5.2 percent to $20.5 million, while operating earnings vaulted 83.1 percent to $1.15 million. The segment includes SCUBAPRO dive equipment.

2021 Revenues Climb 26 percent
For the year, revenue grew 26 percent to $751.7 million. Operating profit rose 56.5 percent to $111.3 million. Despite higher raw material and freight costs, gross margins only dipped slightly due to volume efficiencies and favorable product mix. Operating expenses increased $28.9 million versus the prior year primarily due to volume-related expenses but declined as a percentage of sales versus fiscal 2020. Net income grew 51 percent to $83.4 million, or $8.21 per share.

By segment in the year, Fishing revenue increased 23 percent to $553 million, Camping revenue grew 51 percent to $62.9 million, Watercraft Recreation sales rose 59 percent to $6.6 million, and Diving sales were up 14 percent to $69.5 million.

On a conference call with analysts, Helen Johnson-Leipold, chairman and CEO, said Fishing, Camping and Watercraft Recreation businesses saw strong sales throughout the year while Diving began to recover in the third and fourth quarters. She said, “Overall, as people desire to spend time outdoors continued to fuel demand, our performance this year reflects the value of our sustained focus and investment in translating deep rich consumer insight into the innovative products that deliver the best outdoor experience possible.”

Segment Highlights For The Fiscal Year
In the Fishing segment, growth during the fiscal year at Humminbird was boosted by the introduction of the Mega Live Imaging and Ice Helix 9. At Minn Kota, the Raptor Shallow Water Anchor continues to do well in its first full year on the market.

In Watercraft Recreation, the fishing Kayak segment continues to grow. Johnson-Leipold said, “We’ve outpaced the strong market with the ongoing enthusiasm for our innovative sports in line that we launched last year. Both retailers and consumers are enthusiastic about the innovation, and our Old Town Sportsman Autopilot 136 motorized fishing kayak, shown above and lead photo, was recently awarded Paddling magazine’s best fishing boat for 2022. Old Town Sportsman Autopilot 136 leverages the game-changing Spot-Lock technology from its sister brand Minn Kota to hold a position while anglers fish. From the award-winning autopilot motorized fishing kayak to the versatile pedal-powered Sportsman Salty kayak, the Sportsman line offers a watercraft for anglers in any type of water.”

In Camping, demand for the Eureka! camp cooking technology continues to beat expectations and Jetboil continues to see strong demand for its lightweight Stash stove launched earlier this year. Said Johnson-Leipold, “The Stash is the lightest all-in-one backpack installed system that Jetboil, the technology leader in portable outdoor cooking systems, has ever made.”

Diving’ margins began to recover from pandemic-related restrictions in the latter half of the fiscal year.

“Diving had a strong fiscal fourth quarter,” said Johnson-Leipold. “Our work to promote and support local diving as well as enhance our global digital presence and strength e-commerce are all working to help this positive growth. We remain focused on these efforts, along with sustained innovation to ensure SCUBAPROs position as the most trusted dive brand in the world.”

Inventories Up 71 Percent
Total inventory levels are higher than last year by 71 percent and raw material inventory is up by 100 percent. Johnson Outdoors said it invested in adding capacity and incremental resources where appropriate to offset supply chain pressures. Despite higher raw material and freight costs, gross margins only dipped slightly in the year due to volume efficiencies and favorable product mix. In the near term, gross margins are expected to be pressured due to the supply chain issues and appropriate mitigation actions are being taken.

Said Johnson-Leipold, “While the ongoing global supply chain environment remains challenging and unpredictable, we have taken the time to understand opportunities and have invested in capacity, in addition, to help us manage our supply chain. We remain focused on continuing to work hard to manage supply chain issues and fill orders.”

Photo courtesy Johnson Outdoors/Old Town