Johnson Outdoors today reported sales of $104.4 million for its first quarter, ended Dec. 28, 2018, down 10 percent compared to the same period a year ago. Net income rose to $3.5 million compared to $200,000 a year ago.
The company said that a shift in new-product releases for its fishing division and an 11 percent decline in diving sales led to the lower results.
“We are building momentum behind an exciting new product lineup, particularly in fishing, as we head into the primary selling period for our warm-weather outdoor products,” said Helen Johnson-Leipold, chairman and CEO, in a statement. “At this time, we continue to anticipate year-over-year revenue growth in fiscal 2019. We believe our brands are well-positioned for marketplace success.”
Cash and short-term investments were up $25.9 million to $104.2 million in the latest quarter, compared to the prior-year period. Capital spending declined to $4.1 million versus $6.5 million in the prior year quarter.
David W. Johnson, chief financial officer, said the company expects “moderate sales growth” for fiscal 2019.
“While we continue working on various tariff mitigation efforts, at this time we are still projecting these to have a potential $6 million to $9 million impact on fiscal 2019 profits,” Johnson said in the statement. “Nonetheless, we continue to benefit from our ongoing efforts to improve operational efficiency, enabling us to strengthen margins and keep working capital in check. The balance sheet remains strong, providing us the financial capacity and flexibility to strategically invest in growing our business.”