Johnson Outdoors reports double-digit revenue and profit growth for Q3 - Trade Only Today

Johnson Outdoors reports double-digit revenue and profit growth for Q3

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Johnson Outdoors reported double-digit growth in revenue and profits for the third quarter. Strong new-product demand drove expanded margins, leading to a robust increase in net income versus the prior year third quarter.

Results reflect replenishment orders for the company’s warm-weather outdoor recreation products.

Favorable market momentum for new products, particularly in fishing and camping, fueled a 10 percent increase in total net sales of $170.8 million, compared to $155.7 million in the previous year quarter.

“Unprecedented growth in our flagship fishing brands throughout the year underscores the importance of our ongoing emphasis on consumer insight driven innovation,” Johnson Outdoors chairman and CEO Helen Johnson-Leipold said in a statement.

“Delivering this same level of continuous new-product success across our entire brand portfolio is a key priority, and we are working to further strengthen organizational capacity and capability to do so,” Johnson-Leipold said. “Future plans will focus on strategies targeted on fully leveraging our company-wide digital transformation and data analytics to enhance accelerated profitable growth for all channels long-term.”

Continued high demand for new products introduced during the past 18 months powered growth in the Minn Kota, Humminbird and Cannon brands across all key channels, generating sales of $121.9 million, a 17.3 percent increase in unit revenue.

Kayak market weakness, affecting all segments and channels, continued to negatively impact watercraft recreation sales.

Total company operating profit during the quarter was $32 million, a 29 percent increase, compared to $24.7 million in the prior year quarter.

Gross margin improved to 46.5 percent versus 45.5 percent in last year’s quarter. Net income in the fiscal third quarter rose to $23.8 million, or $2.37 per-diluted-share, a 44 percent increase, compared to $16.6 million, or $1.65 per diluted share, in the previous year.

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