Johnson Outdoors, Inc. is reporting higher sales and decreased earnings results for the company’s first fiscal quarter ending December 30, 2022.

“We saw positive momentum in our Fishing business as supply constraints continued to ease and we worked hard to fill customer orders. In our Camping and Watercraft Recreation businesses, we are experiencing some softening in the market after the pandemic-fueled increase in demand of the last few years. While it’s too early to predict how the fiscal year will go, we are monitoring consumer buying behavior and are focused on filling customer orders as we enter into the primary selling season,” said Helen Johnson-Leipold, chairman and CEO.

Total company net sales in the fiscal first quarter increased 16 percent to $178.3 million compared to $153.5 million in the prior-year quarter. Key contributing factors include:

  • Fishing sales increased by 27 percent, driven primarily by improved supply and component availability and price increases;
  • Camping revenue declined 18 percent, as consumer demand declined from increased levels seen during the pandemic;
  • Watercraft Recreation revenue declined 34 percent, also driven by reductions in consumer demand from the elevated levels seen during the pandemic;
  • As destination travel has rebounded, Diving sales rose 16 percent along with the increase in tourism.

Total company operating profit was $5.5 million for the fiscal first quarter versus $13.8 million in the prior-year first quarter. Gross margin was 35.2 percent of net sales, compared to 39.5 percent in the prior-year quarter. The decline was due to increased cost of sales due to high material and freight costs in inventory. Operating expenses of $57.3 million increased $10.4 million from the prior-year period due primarily to the impact of higher sales volume-driven expenses, as well as higher compensation, health insurance and professional services costs between quarters.

Net income was $5.9 million, or 57 cents per diluted share, versus $10.9 million, or $1.07 per diluted share in the previous year’s first quarter.

Photo courtesy Johnson Outdoors