Johnson Outdoors has bumper Q1

Publish date:

Johnson Outdoors Inc. today reported higher sales and net income for its first fiscal quarter ended December 27, 2019. Net sales were up 23 percent to $128.1 million compared to $104.4 million in the same period a year ago. Net income rose to $6.4 million compared to $3.5 million a year ago.

“We’re pleased with such a positive start to the year. Ongoing investments in richer consumer insights, targeted innovation, and accelerated digital sophistication are essential to continue positive momentum,” said Helen Johnson-Leipold, chairman and CEO, in the statement.

A company statement said that “a key contributing factor” to the 26 percent gain included a “delay in Fishing’s new product availability” in the prior-year quarter. Sales in its Fishing category, which includes electronics and trolling motors, rose to $99.2 million for the quarter, compared to $78.8 million a year ago. It also reported an 11 percent increase in Watercraft Recreation sales to $4.8 million. Diving was also up to $16.5 million for the quarter, compared to $15.5 million a year ago.

CFO David Johnson said the first-quarter results were not “predictive” of the full year. “We continue to expect moderate sales growth for the full fiscal year,” he said in the statement. “As a result of recent developments in trade negotiations between the United States and China, as well as our own mitigation efforts, we now expect the impact of tariffs on Chinese goods and components to be approximately $4-5 million on fiscal 2020 profits.”

The company reported cash and short-term investments of $138.3 million as of December 27, 2019. Capital spending totaled $3.3 million in the current quarter compared with $4.1 million in the prior year quarter.

“Our strong balance sheet provides us the financial capacity and flexibility to strategically invest in growing our business while continuing to enhance long-term value for shareholders,” said Johnson.