RACINE, Wisc.’ Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global innovator of outdoor recreation equipment and technology, today announced lower sales and earnings year over year for the company’s first fiscal quarter ending Friday, December 31, 2021, but a bright spot being sales of watercraft up 17%.
For the first quarter (last 3 months ending Dec. 31, 2021), Watercraft Recreation revenue grew 17 percent from $12.6 million to $14.4 million over the same period in 2020, the report states, with continued strong demand for the Sportsman line of products. Johnson’s paddlesports brands include Old Town Canoe and Ocean Kayak.
“Demand for outdoor recreation products continues to be strong; managing ongoing supply chain challenges and uncertainties associated with the pandemic remain our focus in the near term as we work hard to fill demand,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
FIRST QUARTER RESULTSTotal Company net sales in the first quarter ending December 2021 declined 7 percent to $153.5 million compared to the prior year’s record-high first fiscal quarter. Notably, this quarter’s net sales are 20 percent above the pre-pandemic December 2019 quarter’s net sales. Key contributing factors to the results were:
- In Fishing, while consumer demand and customer orders remain strong, sales declined by 15 percent driven by supply chain disruptions and component delays
- Camping revenue increased 16 percent due to continued demand across consumer product lines as well as increased military tent sales
- Watercraft Recreation revenue grew 17 percent with continued strong demand for the Sportsman line of products
- Diving sales rose 17 percent as dive markets, primarily in the United States and other regions around the world, experienced some recovery
Total Company operating profit was $13.8 million for the first fiscal quarter versus $23.6 million in the prior year first quarter. Gross margin of 39.5 percent was below the prior year quarter driven primarily by increases in costs of raw materials and freight as the Company continues to take actions to ensure the availability of necessary components. Operating expenses decreased $4.6 million over the prior year period due primarily to the impact of lower sales volume-driven expenses.
Net income was $10.9 million, or $1.07 per diluted share, versus $19.8 million, or $1.96 per diluted share in the previous year’s first quarter. The Company’s effective tax rate was 25.6 percent compared to 23.7 percent in the prior year’s first quarter.
“We’ve been taking the necessary steps to mitigate the impact of global supply chain pressures on the business, including maintaining higher-than-normal inventory levels to meet demand for our products and seeking alternative sources of supply for critical components where feasible. We are taking price increases for our products where appropriate, and we will continue to evaluate further pricing actions for the future,” said David W. Johnson, Chief Financial Officer. “Importantly, our strong balance sheet enables us to continue investing in strategic opportunities to strengthen the business, while consistently paying dividends to shareholders.”
About Johnson Outdoors Inc.
JOHNSON OUTDOORS is a leading global innovator of outdoor recreation equipment and technologies that inspire more people to experience the awe of the great outdoors. The company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft Recreation, Fishing, Diving and Camping. Johnson Outdoors’ iconic brands include: Old Town® canoes and kayaks; Ocean Kayak™; Carlisle®paddles; Minn Kota® fishing motors, batteries and anchors; Cannon® downriggers; Humminbird® marine electronics and charts; SCUBAPRO® dive equipment; Jetboil® outdoor cooking systems; and, Eureka!®camping and hiking equipment.