Johnson Outdoors, Inc., the parent of the Jetboil, Old Town, Minn Kota, Humminbird, and ScubaPro brands, for the Company’s third fiscal quarter ending July 3.

“We delivered solid third quarter results with total company sales increasing 5 percent, reflecting the strength of our market-leading brands,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “While macroeconomic conditions remain uncertain, we continue to focus on advancing our strategic priorities, strengthening our competitive position, and making the investments necessary to support long-term growth.”

Fiscal Third Quarter Summary
Total company net sales in the third quarter increased 5 percent year-over year (y/y) to $189.7 million, compared to $180.7 million in the prior-year third fiscal quarter.

Johnson-Leipold said, “Overall, our results reflect the strength of our portfolio and the progress we are making against our strategic priorities.”

Fishing segment revenue increased 7 percent y/y to $150.0 million for the fiscal third quarter, said to be driven by strength in Minn Kota and pricing actions.

“In our Fishing business, Minn Kota continues to be the leader in trolling motors, and the quarter’s results were driven by continued healthy demand for Minn Kota’s full lineup of trolling motors,” commented Johnson-Leipold. “We are pleased with the momentum of our fishing portfolio. As always, we remain focused on investing in innovation and delivering differentiated technology that enhances the experience of the anglers worldwide.”

Diving segment sales increased 10 percent y/y to $23..3 million in Q3, reportedly driven by strong sales in regulators and buoyancy compensator devices. Johnson-Leipold said strong sales in regulators and buoyancy compensators helped drive a solid increase in third quarter sales.

“Digital engagement continues to play an increasingly important role, enhancing connectivity between our ScubaPro brand, retail partners, and consumers,” the CEO continued. “Our focus remains on enhancing brand visibility, improving consumer engagement, and supporting our retail partners around the world. Together, these initiatives strengthen the foundation of the business and underscore the enduring value of the ScubaPro brand.”

Camping & Watercraft Recreation faced a “challenging quarter” as sales declined 13 percent y/y to $16.4 million in the fiscal third quarter, said to be primarily due to weak marketplace conditions in these segments.

“Jetboil remains a leader in camp cooking, and we’re focused on capturing the many opportunities we see to further strengthen and expand the brand,” Johnson-Leipold commented. “With our Old Town brand, our portfolio of innovative, high-quality watercraft continues to resonate with consumers, and we remain committed to building on those strengths to drive sustainable growth over time.”

Profitability and Expenses
Gross margin improved to 45.3 percent, compared to 37.6 percent in the prior-year quarter.

“The tariff refund of approximately $15 million contributed to this improvement,” shared new company CFO Asad Rahman. “Excluding this benefit, gross margin would have been modestly lower than the prior year due to higher raw materials costs. Looking ahead, we do not anticipate additional meaningful tariff refunds, and as the tariff landscape continues to evolve, we remain vigilant in managing potential cost impacts and are closely monitoring developments.”

Still, the CFO said increasing raw material costs is still a headwind here.

Rahman also said pricing was a factor during the quarter, and the company did strategic pricing where it made sense for products, “keeping in mind the consumer and demand dynamics.”

Operating expenses increased $7 million from the prior-year third quarter. The CFO said roughly half of the increase was related to variable compensation cost, with the balance associated with volume-related costs and other expenses.

“We continue to manage our expenses prudently while investing in key priorities that are the right things to set us up for long-term success,” Rahman stated.

Profit before income taxes for the third quarter was $23.3 million compared to $10.5 million in the prior-year quarter.

Total company operating income was $18.3 million for the third fiscal quarter versus operating income of $7.3 million in the prior-year third quarter.

  • Fishing segment operating income amounted to $26.4 million in the fiscal third quarter, compared to $14.6 million in the prior-year Q3 period.
  • Diving segment sales operating income was $3.3 million in the third quarter, compared to $1.6 million in the prior-year third quarter.
  • Camping & Watercraft Recreation operating income amounted to $1.1 million in the fiscal third quarter, compared to $1.6 million in the prior-year Q3 period.

Profit before income taxes was $23.3 million in the third quarter, compared to $10.5 million in the prior-year third quarter.

The effective tax rate was an expense of 35.8 percent compared to 26.3 percent in the prior year third quarter.

Net income was $14.9 million, or $1.42 per diluted share, for the third quarter, compared to $7.7 million, or 75 cents per diluted share in the previous year’s third quarter.

“By remaining focused on innovation, expanding our digital and e-commerce presence, and driving operational efficiencies, we are positioning the business to perform through a range of market conditions and create long-term value,” Johnson-Leipold concluded.

Year-to-Date Summary
Fiscal 2026 year-to-date (YTD) net sales were $525.1 million, a 15.0 percent increase over last year’s fiscal nine-month period.

  • Gross margin increased to 40.6 percent, compared to 34.8 percent in the prior year-to-date period. Tariff refunds, pricing actions, improved overhead absorption, and cost-saving initiatives were said to more than offset higher material costs to drive margin improvement in the current year-to-date period.
  • Tariff refunds, pricing actions, improved overhead absorption, and cost savings initiatives more than offset higher material costs to drive margin improvement in the current year-to-date period.
  • Operating expenses increased $20.3 million in the nine-month period ending July 3, 2026, from the prior year reportedly due to higher sales-volume related costs, higher variable compensation costs, and additional professional services expense in the current year-to-date period.
  • Profit before income taxes for the year-to-date period was $32.2 million, versus a $4.3 million loss before income taxes in the prior-year YTD period.  In addition to the increase in operating profit, other income increased by $2.1 million, primarily due to an increase in investment gains and earnings on the assets related to the company’s non-qualified deferred compensation plan in the current year-to-date period, offset entirely as an increase in operating expense between the same periods.
  • The company’s effective tax rate increased to 34.7 percent in the current year versus a rate of (22.8) percent in the prior year nine-month period.

Net income for the YTD period was $21.1 million, or $2.00 per diluted share, versus a net loss of $5.2 million, or a loss of 52 cents per diluted share, in the prior-year YTD period.

Other Financial Information 
The company reported cash and short-term investments of $175.2 million as of July 3, an increase of $14.2 million over the prior-year third quarter.

“During the quarter, we increased inventory levels to support sales demand,” Rahman disclosed. “Our inventory balance at the end of the third quarter was $188.3 million, up about $24.5 million from the prior-year third quarter.

Depreciation and amortization were $15.0 million in the nine-month period ending July 3, 2026, compared to $15.3 million in the prior nine-month period.

Capital spending totaled $16.4 million in the third quarter compared with $11.8 million in the prior-year third quarter.

In May 2026, the company’s Board of Directors approved a quarterly cash dividend to shareholders of record as of July 16, 2026, which was payable July 30, 2026.

“We recognized approximately $15 million of tariff refunds in the third quarter, with some of that benefit offset by broader cost inflation and other expense increases. As tariff policies continue to evolve, we remain cautious about the outlook for costs and are monitoring developments closely,” said Rahman, wrapping up his prepared comments. “Our inventory increased compared to the prior year quarter as we positioned the business to support sales demand, and we remain confident in our inventory management processes and our ability to maintain healthy inventory levels.”

Rahman concluded: Looking ahead, we remain focused on actively managing the business to balance near-term pressures while continuing to invest in priorities that support sustainable growth. Our balance sheet remains debt-free, and we continue to pay a meaningful dividend to shareholders with the Board approving our most recent dividend announced in May.”

Image courtesy Jetboil