Johnson Outdoors reported sales for the fiscal third quarter ended July 2 rose 7.9% to $124.0 million compared to $114.9 million in the prior year period as robust growth in marine electronics and outdoor equipment more than made up for declining sales of canoes, kayaks and SCUBA gear. Net income increased 15.6% to $10.4 million, or $1.09 per diluted share, from $9.0 million, or 97 cents, in the year-ago period.

 

Major outdoor retailers are reporting increased comp stores sales and specialty dealers are also having a solid year,” said Helen Johnson-Leipold, chairman and CEO. “What we are seeing and hearing is that sell though at retail is meeting expectations.” CFO David Johnson said sales tapered off in June after a strong start in April and May and that forecasting remains difficult. To improve visibility, JOUT is piloting a new program that provides the company access to POS data on core products at 15 key retailers. The data will help JOUT respond more quickly when items are under- or over-stocked. If the pilot succeeds, JOUT may expand it.


In the meantime, the company said fishermen and buyers of large tents have resumed upgrading their gear.


In Marine Electronics, revenues surged 17.9% ahead of last year due to growth in Minn Kota, Humminbird and Cannon brands across all distribution channels in both international and domestic boat markets. After being hit hard by tight credit and high unemployment, fishermen have begun upgrading their gear.


Outdoor Equipment sales jumped 21.3% above last year driven by double-digit growth across all segments. The company’s decision to begin selling sleeping bags, camp furniture and portable energy sources under its Eureka brand helped propel online sales growth of 40%. Tent sales also grew in the double digits in both commercial and military channels as many customers finally moved to upgrade big tents after years of delaying such purchases.


Watercraft revenues, which include sales of Old Town, Necky and Ocean Kayak boats, decreased 3.5% below the prior year on declines in Europe and the U.S. specialty channel. As reported in The B.O.S.S. Report last month, JOUT is now refocusing on the specialty channel where Johnson-Leipold said sales “have lost some traction.
The company introduced several new boats at the Outdoor Retailer show last week that will be available only in the specialty channel. Johnson-Leipold said the company should know in coming weeks whether its new distribution strategy is succeeding. Confluence Watersports claims it has been winning market share since making a similar change last year to win back specialty dealers who had become disillusioned with widening distribution of some of the company’s boat brands.


Diving revenues were 9.0% behind last year due to a negative 3.5% impact from currency translation, product availability and a late-quarter slow-down of sales in key international markets. Business started strong in April and May with introduction of its lower priced SUBGEAR in the United States. Johnson-Leipold said sales of the new line, which JOUT acquired in 2007 with its acquisition of the German brand SEEMANN, were exceeding plan and not cannibalizing sales of its premium SCUBAPRO line. Still, product availability led to shipment delays late in the quarter. Orders are strong and sales are tracking to expectations.