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Johnson Outdoors Reports Q2 Results

JohnsonOutdoors

Johnson Outdoors reported lower sales and net income for its second fiscal quarter, ended March 27. However, on a year-to-date basis, sales were up 3 percent, to $291.1 million, reflecting a strong first quarter.

The company’s second fiscal quarter sales reflect both shipments in anticipation of prime retail season and government-mandated stay-at-home orders, which forced the temporary closures of numerous facilities. Net sales decreased 8 percent, to $163.1 million, compared with $177.7 million in the previous year quarter.

The impact of the covid-19 pandemic affected outdoor holdings in unique ways, the company said in a statement, which was a “key contributing factor to the year-over-year unfavorable comparison in total company net sales.”

Fishing revenue declined 3 percent to $134 million; camping sales decreased 7 percent to $8.8 million; diving revenue dropped 29 percent “due to the impact on dive markets across Europe, Asia-Pacific and North America as a result of the pandemic”; and watercraft sales fell 38 percent due largely to impacts on production and demand.

“During this unsettling time, we are taking steps to protect the health and safety of our people and ensure the future for Johnson Outdoors. Government mandates in response to covid-19 have overlapped with our primary selling season, and the third quarter is expected to be significantly impacted as a result. However, as stay-at-home orders are lifted, Johnson Outdoors will be ready to help people have a great outdoor experience,” CEO and chairman Helen Johnson-Leipoldsaid.

The company reported that total operating profit improved to $31.8 million, from $27.8 million in the prior year second quarter. Gross margin was up as well, from 44.5 percent to 46.1 percent,Johnson said, citing stronger pricing and improved product mix.

Net income was $20.4 million, or $2.02 per diluted share, in the current quarter versus $21.9 million, or $2.18 per diluted share, in the previous year quarter.

Anticipating continued impacts from the pandemic, vice president and CFO David W. Johnson said, “We have cut travel and non-essential spending, deferred capital expenditures and are working to scale operations consistent with demand. In addition, the board of directors and executives have voluntarily taken reductions in pay.

“Looking forward, our debt-free balance sheet remains strong, and our healthy cash position will be beneficial as we work through challenges ahead,” he added.

Johnson-Leipold said the company remains committed to developing fresh ideas for products, a critical factor for the business going forward.

“Now, as always, consumer-driven innovation will play a critical role in helping us overcome challenging times and emerge stronger and better-positioned for the future.”

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