Johnson Outdoors reports 2Q resultsPosted on
Johnson Outdoors reported lower second-quarter sales and profits, attributing the reduced results primarily to prolonged harsh winter weather.
The Wisconsin-based outdoor recreation equipment company said net sales were $124.3 million for the quarter that ended March 28, a 6 percent decline from what the company said were record-high net sales of $132.1 million in the prior year’s quarter.
Profits totaled $7.4 million, or 67 cents a diluted share, and they compared unfavorably with a record-high $8.9 million, or 90 cents a share, a year earlier.
The company said lower operating expenses did not offset the volume-related impact on operating profits.
“Unpredictable weather conditions are always challenging for the highly seasonal outdoor recreational industry, and this year’s unusually long and frigid winter has shifted the pacing of customer orders to more closely align with the retail selling period of our products during the spring and summer months,” chairman and CEO Helen Johnson-Leipold said in a statement.
“On a positive note, we ended this quarter with strong marketplace demand for our new products. However, given the very late start to the season it is difficult to forecast full-year performance at this time.”
The company said marine electronics revenue declined 7 percent because of delayed orders in key channels. Watercraft sales compared unfavorably with the same period last year because of lower international sales related to the planned exit of European and Pacific Rim markets.
Diving sales were 11 percent behind the prior year because of weak economies in key diving markets, coupled with delayed shipments of new products.
The total company operating margin for the quarter was 9 percent, compared with a margin of 10 percent in the prior year’s quarter.
Operating profits of $11.5 million reflected a $1.1 million decline year-over-year. Operating expenses declined $4.1 million year-over-year largely because of lower sales volume-related costs, as well as reduced discretionary compensation, warranty and restructuring costs.