Johnson Outdoors Inc. is exploring strategic alternatives for its Escape® brand products and stepping-up support behind paddle sport segment growth initiatives.  As a result, the company has incurred $1.3M in impairment charges related to inventory and fixed assets during the 2008 first fiscal quarter. Future impairment charges are estimated to be around $0.2 million and results of the Escape® brand products will be reported as discontinued operations.


“While we continue to believe in the future of Escape® products, the pace of growth has been slower than anticipated,” said Helen Johnson-Leipold, company chairman and CEO.  “Throughout fiscal 2007, investments in the long-term opportunity for Escape® masked the outstanding performance and accelerated growth of our paddle sport brands. Our decision to explore strategic alternatives for Escape® will enable us now to focus Watercraft resources on our paddling brands where we see the greatest potential for short- and long-term profitable growth.”


According to Mark Leopold, group VP for Watercraft, “We believe we are the innovation leader in the paddle sports market, with new products contributing well over thirty percent of net sales for the business unit over the past three years. In 2008, we expect to deliver the same level of innovation to our marketing and merchandising efforts, with a focus on driving increased revenues for our retailers and expanded distribution of our paddling accessories brands. For perspective, the canoe and kayak industry is estimated to be a $500 million marketplace, and the paddling accessories marketplace is projected to be equal to that.”

Key 2008 paddle sport segment growth initiatives include, among others:


Watercraft Sales Realignment


Paddle sport sales management has been realigned to bring added focus and service to retail trade customers with Rob Dorcas, a 15 year veteran of the industry, appointed Director of North American Specialty Sales and Glen MacPherson named Director – National Accounts. In these new roles, both are dedicated to the development and implementation of unique sales and promotional programs and activities targeted at generating retail traffic and revenue growth for their respective trade channel of responsibility.

Paddlesport Accessories Merchandising


This year Extrasport® will launch a full line of totally redesigned personal flotation devices (PFDs) utilizing its patented Retroglide® technology, as well as a new, sleeker line of Tech Wear, both sporting new easy-to-see, easy-to-read packaging. New this year also is eye-appealing, customer- and consumer-friendly in-store displays and merchandising for all paddling accessory brands, which also include Carlisle® paddles, oars and paddle gear and premium Lendal® paddles.


“Equal to our focus on growing paddlesports is our relationship with our valued Escape® customers,” said Mr. Leopold. “Customer satisfaction is our top priority, and we will continue to provide the same high-quality service, outstanding technical support and parts and accessories they have come to expect for the foreseeable future.”