Johnson Outdoors (NASDAQ: JOUT ) is a solid company that owns a multitude of brands that have helped generate steady profits and cash flows historically. While the company's shares aren't irresistibly cheap right now, they have beenI am a value investor with a concentrated portfolio, focusing on rare and exceptional buying opportunities. As a keen reader of Value Investing literature, I am well versed in the teachings of 'super investors' such as Warren Buffett, Charlie Munger, Benjamin Graham and several o ...

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. This writing is for informational purposes only. All opinions expressed herein are not investment reco ...

Core Insights - Johnson Outdoors reported a significant GAAP earnings beat for Q3 FY2025, with earnings per share of $0.75, surpassing the analyst estimate of $0.24, and revenue of $180.7 million, exceeding the forecast of $176.6 million [1][2] - The company experienced a 5% year-over-year revenue increase, driven primarily by strong performance in the Fishing and Diving segments [1][2] Financial Performance - Q3 FY2025 GAAP EPS was $0.75, compared to $0.16 in Q3 FY2024, marking a substantial increase [2] - Revenue for Q3 FY2025 was $180.7 million, up from $172.5 million in Q3 FY2024, reflecting a 4.8% year-over-year growth [2] - Gross margin improved to 37.6%, up 1.8 percentage points from the previous year [2][7] - Operating profit turned positive at $7.3 million, compared to an operating loss of $0.5 million in the prior year [2][8] - Net income rose to $7.7 million, a 381.3% increase from $1.6 million in Q3 FY2024 [2] Segment Performance - The Fishing segment generated $140.7 million in sales, an 8% increase from the previous year, with operating profit more than doubling [5][6] - The Diving segment saw a 7% sales increase, supported by favorable market conditions and currency effects [6] - The Camping & Watercraft Recreation segment reported a 14% year-over-year sales decline, but excluding the discontinued Eureka! tent business, sales would have increased by 3% [6] Strategic Focus - The company emphasizes continuous product innovation and operational efficiency, particularly in the Fishing segment with advanced technologies like the Humminbird XPLORE series [4] - Effective supply chain management and inventory discipline are crucial for adapting to market conditions [4] Balance Sheet and Cash Flow - Inventory decreased by approximately $69 million compared to the previous year, indicating improved balance sheet discipline [9] - Cash and short-term investments totaled $161.0 million as of Q3 FY2025 [9] Future Outlook - Management did not provide specific financial guidance for the remainder of FY2025, citing uncertainties related to macroeconomic factors and tariffs [10] - The company's future performance will depend on its ability to navigate risks and continue investing in product innovation and operational efficiency [10][11]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of Johnson Outdoors Inc. for the three and nine months ended June 27, 2025, and June 28, 2024, including statements of operations, comprehensive income (loss), balance sheets, shareholders' equity, and cash flows, along with detailed notes explaining the accounting policies and significant financial events [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Condensed Consolidated Statements of Operations show a significant improvement in net income for the three months ended June 27, 2025, compared to the prior year, driven by increased net sales and gross profit, while the nine-month period reflects a net loss Condensed Consolidated Statements of Operations (thousands, except per share data) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $180,655 | $172,472 | $456,653 | $486,972 | | Gross profit | $67,927 | $61,822 | $158,976 | $176,107 | | Operating profit (loss) | $7,330 | $(506) | $(8,008) | $(713) | | Profit (loss) before income taxes | $10,500 | $907 | $(4,269) | $9,818 | | Net income (loss) | $7,742 | $1,622 | $(5,244) | $7,733 | | Net income (loss) per Class A share - Diluted | $0.75 | $0.16 | $(0.52) | $0.75 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The Condensed Consolidated Statements of Comprehensive Income (Loss) show a positive total comprehensive income for the three months ended June 27, 2025, primarily due to net income and favorable foreign currency translation, contrasting with a comprehensive loss for the nine-month period Condensed Consolidated Statements of Comprehensive Income (Loss) (thousands) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income (loss) | $7,742 | $1,622 | $(5,244) | $7,733 | | Foreign currency translation | $5,192 | $(439) | $1,410 | $241 | | Total other comprehensive income (loss) | $5,193 | $(419) | $1,422 | $360 | | Total comprehensive income (loss) | $12,935 | $1,203 | $(3,822) | $8,093 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets indicate a slight decrease in total assets and shareholders' equity as of June 27, 2025, compared to September 27, 2024, with a notable reduction in inventories and an increase in cash and cash equivalents Condensed Consolidated Balance Sheets (thousands) | Metric | June 27, 2025 | September 27, 2024 | June 28, 2024 | | :-------------------------- | :------------ | :----------------- | :------------ | | Cash and cash equivalents | $158,691 | $145,498 | $126,823 | | Short term investments | $2,331 | $16,541 | $21,546 | | Accounts receivable, net | $81,993 | $40,649 | $79,593 | | Inventories | $163,732 | $209,788 | $223,160 | | Total current assets | $420,073 | $428,728 | $461,005 | | Total assets | $634,473 | $635,212 | $679,825 | | Accounts payable | $43,478 | $36,077 | $43,153 | | Total current liabilities | $105,562 | $90,444 | $99,293 | | Total liabilities | $184,009 | $171,788 | $181,156 | | Total shareholders' equity | $450,464 | $463,424 | $498,669 | [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) The Condensed Consolidated Statements of Shareholders' Equity show a decrease in retained earnings for the nine months ended June 27, 2025, primarily due to net loss and dividends declared, partially offset by an increase in accumulated other comprehensive income Changes in Shareholders' Equity (thousands, except for shares) | Metric | Balance at Sep 27, 2024 | Net Loss/Income | Dividends Declared | Currency Translation Adjustment | Balance at Jun 27, 2025 | | :-------------------------------- | :---------------------- | :-------------- | :----------------- | :------------------------------ | :---------------------- | | Shares (total) | 10,301,738 | — | — | — | 10,372,263 | | Common Stock | $517 | — | — | — | $521 | | Capital in Excess of Par Value | $90,146 | — | — | — | $91,422 | | Retained Earnings | $369,592 | $(15,290) | $(3,362) | — | $354,205 | | Accumulated Other Comprehensive Income (Loss) | $5,964 | — | — | $7,466 | $7,386 | | Treasury Stock | $(2,795) | — | — | — | $(3,070) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows indicate an increase in cash provided by operating activities for the nine months ended June 27, 2025, compared to the prior year, while investing activities shifted from providing cash to using cash, primarily due to a business acquisition Condensed Consolidated Statements of Cash Flows (thousands) | Activity | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :-------------------------------- | :------------------------------ | :------------------------------ | | Cash provided by operating activities | $32,810 | $21,899 | | Cash (used for) provided by investing activities | $(10,002) | $3,225 | | Cash used for financing activities | $(10,142) | $(10,136) | | Effect of foreign currency rate changes on cash | $527 | $(19) | | Increase in cash and cash equivalents | $13,193 | $14,969 | | Cash and cash equivalents, End of period | $158,691 | $126,823 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed information on the Company's accounting policies, significant financial statement line items, and recent events, including earnings per share calculations, stock-based compensation, lease obligations, income taxes, goodwill, warranties, indebtedness, fair value measurements, new accounting pronouncements, revenue recognition, segment reporting, accumulated other comprehensive income, and business acquisitions [Note 1. Basis of Presentation](index=10&type=section&id=1%20BASIS%20OF%20PRESENTATION) This note clarifies that the condensed consolidated financial statements are unaudited, include normal recurring adjustments, and should be read in conjunction with the Company's latest Annual Report on Form 10-K - The financial statements are unaudited and include only normal recurring adjustments, consistent with prior filings[23](index=23&type=chunk) - All monetary amounts, except for share and per share data, are presented in **thousands**[24](index=24&type=chunk) [Note 2. Accounts Receivable](index=10&type=section&id=2%20ACCOUNTS%20RECEIVABLE) This note details the Company's policy for accounts receivable, which are stated net of allowances for credit losses, determined by specific collection concerns and historical bad debt experience Allowances for Credit Losses (thousands) | Date | Allowance for Credit Losses | | :---------------- | :-------------------------- | | June 27, 2025 | $670 | | September 27, 2024| $3,543 | | June 28, 2024 | $649 | - The Company determines allowances for credit losses based on specific collection concerns and historical bad debt experience for each business segment[25](index=25&type=chunk) [Note 3. Earnings Per Share (EPS)](index=10&type=section&id=3%20EARNINGS%20PER%20SHARE%20(%22EPS%22)) This note explains the computation of basic and diluted earnings per share using the two-class method, considering the different dividend rights of Class A and Class B common stock and the impact of participating securities and anti-dilutive instruments - EPS is computed using the two-class method, with Class A common stock holders entitled to **110%** of dividends declared on Class B common stock[26](index=26&type=chunk)[27](index=27&type=chunk) - For the three months ended June 27, 2025, diluted net income per share reflects the effect of dilutive stock units and assumes conversion of Class B to Class A common stock[33](index=33&type=chunk) Dividends Declared Per Common Share | Class | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :---- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Class A | $0.33 | $0.33 | $0.99 | $0.99 | | Class B | $0.30 | $0.30 | $0.90 | $0.90 | [Note 4. Stock-Based Compensation and Stock Ownership Plans](index=11&type=section&id=4%20STOCK-BASED%20COMPENSATION%20AND%20STOCK%20OWNERSHIP%20PLANS) This note details the Company's stock ownership plans, including non-vested stock and restricted stock units (RSUs), outlining their activity, compensation expense, and the termination of the Employees' Stock Purchase Plan Non-vested Stock Activity (Nine Months Ended June 27, 2025) | Metric | Shares | Weighted Average Grant Price | | :-------------------------- | :----- | :--------------------------- | | Balance at September 27, 2024 | 56,389 | $59.69 | | Non-vested stock grants | 67,312 | $30.20 | | Restricted stock vested | (24,357)| $54.60 | | Forfeitures | (3,690)| $54.20 | | Balance at June 27, 2025 | 95,654 | $40.44 | Stock Compensation Expense (thousands) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Non-vested stock expense | $462 | $398 | $1,278 | $1,148 | | RSU income (expense) | $660 | $201 | $384 | $(239) | | ESPP income (expense) | $86 | $(25) | $79 | $(83) | - The Employees' Stock Purchase Plan was terminated effective May 9, 2025[48](index=48&type=chunk) [Note 5. Leases](index=13&type=section&id=5%20LEASES) This note outlines the Company's operating lease arrangements, including lease costs, right-of-use (ROU) assets, lease liabilities, and future minimum rental commitments, noting no significant new leases or finance leases Total Lease Cost (thousands) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Operating lease costs | $2,680 | $2,470 | $7,951 | $7,411 | | Short-term lease costs | $559 | $602 | $1,687 | $1,828 | | Variable lease costs | $53 | $43 | $152 | $129 | | Total lease cost | $3,292 | $3,115 | $9,790 | $9,368 | Operating Lease Information (thousands, except years and rate) | Metric | June 27, 2025 | June 28, 2024 | | :------------------------------------------ | :------------ | :------------ | | Operating lease ROU assets | $45,038 | $49,017 | | Total operating lease liabilities | $46,930 | $50,772 | | Weighted average remaining lease term (years) | **10.58** | **11.21** | | Weighted average discount rate | **3.41 %** | **3.22 %** | | Cash paid for amounts in lease liabilities | $7,565 | $6,884 | Future Minimum Rental Commitments (thousands) | Year | Total Undiscounted Lease Payments | | :---------------- | :-------------------------------- | | Remainder of 2025 | $2,580 | | 2026 | $9,308 | | 2027 | $7,473 | | 2028 | $4,882 | | 2029 | $3,534 | | Thereafter | $29,768 | | Total | $57,545 | [Note 6. Income Taxes](index=15&type=section&id=6%20INCOME%20TAXES) This note details the Company's income tax expense and effective tax rates, highlighting the impact of geographic mix of profits/losses and valuation allowances, and mentions the assessment of the recently signed OBBB Act Income Tax Expense and Effective Tax Rate (thousands, except tax rate data) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Profit (loss) before income taxes | $10,500 | $907 | $(4,269) | $9,818 | | Income tax expense (benefit) | $2,758 | $(715) | $975 | $2,085 | | Effective income tax rate | **26.3 %** | **(78.8)%** | **(22.8)%** | **21.2 %** | - The change in effective tax rate is primarily due to the geographic mix of profits or losses and the recording of an unrecognized tax benefit in the current year[57](index=57&type=chunk)[58](index=58&type=chunk) - The Company recorded an **$858 thousand** unrecognized tax benefit, including interest and penalties, during the nine months ended June 27, 2025[61](index=61&type=chunk) - The Company is currently assessing the potential impact of the One Big Beautiful Bill (OBBB) Act, signed into law on July 4, 2025, on its estimated annual effective tax rate[62](index=62&type=chunk) [Note 7. Inventories](index=16&type=section&id=7%20INVENTORIES) This note provides a breakdown of the Company's inventory, valued at the lower of cost (FIFO method) or net realizable value, showing a decrease in both raw materials and finished goods compared to prior periods Inventories (thousands) | Category | June 27, 2025 | September 27, 2024 | June 28, 2024 | | :--------------- | :------------ | :----------------- | :------------ | | Raw materials | $85,956 | $103,780 | $107,384 | | Finished goods | $77,776 | $106,008 | $115,776 | | Total Inventories| $163,732 | $209,788 | $223,160 | [Note 8. Goodwill](index=16&type=section&id=8%20GOODWILL) This note details the changes in goodwill, including the addition from a recent acquisition and the prior year's impairment charge related to the Fishing reporting unit Changes in Goodwill (thousands) | Metric | June 27, 2025 | June 28, 2024 | | :------------------------------------ | :------------ | :------------ | | Balance at beginning of period | $0 | $11,172 | | Acquisitions | $10,231 | — | | Amount attributable to foreign currency rates | $(69) | $(12) | | Balance at end of period | $10,162 | $11,160 | - Goodwill at June 27, 2025, relates to the acquisition of Endless Summer Technologies Proprietary, Ltd. (EST)[64](index=64&type=chunk) - A goodwill impairment charge was recognized in the fourth quarter of fiscal 2024, reducing the Fishing reporting unit's goodwill to **$0**, due to reduced cash flow projections from market challenges and competitive pressure[66](index=66&type=chunk) [Note 9. Warranties](index=17&type=section&id=9%20WARRANTIES) This note summarizes the Company's warranty activity, showing an increase in the warranty liability for the nine months ended June 27, 2025, due to higher expense accruals Warranty Activity (thousands) | Metric | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Balance at beginning of period | $10,211 | $11,741 | | Expense accruals for warranties issued | $8,969 | $6,359 | | Less current period warranty claims paid | $(6,737) | $(7,168) | | Balance at end of period | $12,443 | $10,932 | [Note 10. Contingencies](index=17&type=section&id=10%20CONTINGENCIES) This note states that the Company is involved in various legal actions in the normal course of business but management does not believe the final outcome will have a material adverse effect on its financial condition - The Company is subject to various legal actions and proceedings, including commercial disputes, product liability, intellectual property, and regulatory matters[69](index=69&type=chunk) - Management believes the final outcome of any pending litigation will not have a material adverse effect on the Company's financial condition, results of operations, liquidity, or cash flows[69](index=69&type=chunk) [Note 11. Indebtedness](index=17&type=section&id=11%20INDEBTEDNESS) This note confirms the Company had no debt outstanding and details the terms of its unsecured revolving credit facility, which was reduced to $50 million with modified conditions during the Second Amendment Period - The Company had **no debt outstanding** as of June 27, 2025, September 27, 2024, or June 28, 2024[70](index=70&type=chunk) - The Revolving Credit Facility was reduced from **$75 million** to **$50 million** on January 29, 2025, while maintaining a **$50 million** accordion feature[71](index=71&type=chunk) - During the Second Amendment Period, the Company must maintain a **$50 million** minimum cash balance, and the interest rate on borrowings is SOFR plus a **1.75%** applicable margin[71](index=71&type=chunk)[73](index=73&type=chunk) [Note 12. Fair Value Measurements](index=18&type=section&id=12%20FAIR%20VALUE%20MEASUREMENTS) This note defines fair value and outlines the hierarchy of inputs used for fair value measurements, specifically for Rabbi trust assets (Level 1) and marketable securities (Level 2) - Fair value is defined as the exchange price in an orderly transaction between market participants[76](index=76&type=chunk) Financial Assets Measured at Fair Value (thousands) as of June 27, 2025 | Asset | Level 1 | Level 2 | Level 3 | Total | | :---------------- | :------ | :------ | :------ | :---- | | Rabbi trust assets| $28,617 | — | — | $28,617 | | Marketable securities | — | $2,331 | — | $2,331 | | Total | $28,617 | $2,331 | — | $30,948 | - Rabbi trust assets are classified as **Level 1** (quoted prices in active markets), and marketable securities are classified as **Level 2** (significant other observable inputs)[79](index=79&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) [Note 13. Cash, Cash Equivalents, and Marketable Securities](index=19&type=section&id=13%20CASH,%20CASH%20EQUIVALENTS,%20AND%20MARKETABLE%20SECURITIES) This note defines cash equivalents and details the classification and fair value of marketable securities, which are held as available-for-sale and primarily consist of fixed-rate government bonds - Cash equivalents include short-term investments in interest-bearing accounts and securities with original maturities of three months or less, stated at cost approximating market value[84](index=84&type=chunk) - All marketable securities are classified as available-for-sale, reported at estimated fair value with unrealized gains/losses in accumulated other comprehensive income[85](index=85&type=chunk) Marketable Securities at Fair Value (thousands) as of June 27, 2025 | Security | Amortized Cost | Fair Value | Gross Unrealized Gains | Gross Unrealized Losses | | :-------------------------- | :------------- | :--------- | :--------------------- | :---------------------- | | Fixed rate Canadian Government Bonds | $2,326 | $2,331 | $5 | — | | Total | $2,326 | $2,331 | $5 | — | [Note 14. New Accounting Pronouncements](index=20&type=section&id=14%20NEW%20ACCOUNTING%20PRONOUNCEMENTS) This note outlines recently issued accounting pronouncements, including ASUs related to expense disaggregation, income tax disclosures, segment reporting, and SEC rules on climate-related disclosures, with the Company currently assessing their potential impact - ASU 2024-03 (Expense Disaggregation Disclosures) is effective in fiscal **2028**, aiming to improve disclosures on expenses like inventory purchases, employee compensation, and depreciation[91](index=91&type=chunk) - SEC Final Rulemaking Release No. 33-11275 (Climate-Related Disclosures) is effective for the Company beginning in fiscal **2027**, enhancing consistency and transparency of climate risks[92](index=92&type=chunk) - ASU 2023-07 (Segment Reporting) is effective in fiscal **2025**, improving disclosures about reportable segments' expenses, but the Company does not expect a material effect[94](index=94&type=chunk) [Note 15. Revenues](index=21&type=section&id=15%20REVENUES) This note describes the Company's revenue recognition policy, which occurs when control of goods is transferred, and details how variable consideration, shipping and handling, and estimated returns are accounted for - Revenue is recognized when obligations are satisfied, typically upon transfer of control of goods at the point of shipping, with consideration adjusted for customer incentives or rebates[95](index=95&type=chunk) - Estimated costs of returns, allowances, and discounts are accrued as a reduction to sales when revenue is recognized[97](index=97&type=chunk) Returns Asset and Accrued Returns Liability (thousands) | Metric | June 27, 2025 | June 28, 2024 | | :-------------------------- | :------------ | :------------ | | Right to returns asset | $1,447 | $1,195 | | Accrued returns liability | $3,783 | $2,981 | [Note 16. Segments of Business](index=22&type=section&id=16%20SEGMENTS%20OF%20BUSINESS) This note provides disaggregated financial information by business segment, highlighting the combination of 'Camping' and 'Watercraft Recreation' into a single segment and detailing net sales, operating profit (loss), and total assets for each segment - As of December 27, 2024, the Company combined its 'Camping' and 'Watercraft Recreation' segments into 'Camping & Watercraft Recreation' for financial reporting purposes[102](index=102&type=chunk) Net Sales by Business Segment (thousands) | Segment | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Fishing | $140,243 | $130,415 | $357,138 | $379,242 | | Camping & Watercraft Recreation | $18,884 | $21,946 | $46,153 | $52,861 | | Diving | $21,197 | $19,856 | $52,691 | $54,248 | | Total | $180,655 | $172,472 | $456,653 | $486,972 | Operating Profit (Loss) by Business Segment (thousands) | Segment | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Fishing | $14,553 | $5,258 | $15,761 | $24,214 | | Camping & Watercraft Recreation | $1,588 | $2,031 | $2,188 | $1,534 | | Diving | $1,576 | $898 | $255 | $22 | | Other / Corporate | $(10,387) | $(8,693) | $(26,212) | $(26,483) | | Total | $7,330 | $(506) | $(8,008) | $(713) | [Note 17. Accumulated Other Comprehensive Income (Loss)](index=23&type=section&id=17%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) This note details the changes in Accumulated Other Comprehensive Income (AOCI) by component, including foreign currency translation adjustments, unrealized gains/losses on available-for-sale securities, and changes in pension plans, net of tax Changes in AOCI by Component (thousands) for Nine Months Ended June 27, 2025 | Component | Balance at Sep 27, 2024 | Other Comprehensive Income (Loss) before Reclassifications | Amounts Reclassified from AOCI | Tax Effects | Balance at Jun 27, 2025 | | :------------------------------------ | :---------------------- | :--------------------------------------------------------- | :----------------------------- | :---------- | :---------------------- | | Foreign Currency Translation Adjustment | $6,056 | $1,410 | — | — | $7,466 | | Unrealized gain (loss) on available-for-sale securities | $17 | $(13) | — | — | $4 | | Unamortized Loss on Defined Benefit Pension Plans | $(109) | $25 | $32 | $(7) | $(84) | | Total AOCI | $5,964 | $1,422 | $25 | $(7) | $7,386 | Reclassifications out of AOCI (thousands) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Amortization of loss (pension plans) | $11 | $10 | $32 | $29 | | Tax effects | $(2) | $(2) | $(7) | $(8) | | Total reclassifications | $9 | $8 | $25 | $21 | [Note 18. Acquisitions](index=25&type=section&id=18%20ACQUISITIONS) This note details the Company's acquisition of Endless Summer Technologies Proprietary, Ltd. (EST) in October 2024, a scuba equipment manufacturer, for approximately $12.2 million, aiming to enhance the Diving segment's product innovation and operating efficiencies - On October 25, 2024, the Company acquired Endless Summer Technologies Proprietary, Ltd. (EST), a scuba equipment manufacturer based in Durban, South Africa[113](index=113&type=chunk) - The acquisition cost was approximately **$12.197 million**, funded with existing cash, and is expected to provide new innovative products, unlock synergies, and enhance operating efficiencies for the Diving segment[113](index=113&type=chunk)[114](index=114&type=chunk) Provisional Fair Values of Assets Acquired and Liabilities Assumed (thousands) | Category | Amount | | :------------------------------------ | :----- | | Accounts receivable | $245 | | Inventories | $2,261 | | Property, plant and equipment | $502 | | Identifiable intangible assets | $1,439 | | Deferred tax asset | $237 | | Less, accounts payable and accruals | $(1,044)| | Less, other current liabilities | $(636) | | Less, long term liabilities | $(1,110)| | Total identifiable net assets | $1,966 | | Goodwill | $10,231| | Net assets acquired | $12,197| [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance and condition for the three and nine months ended June 27, 2025, discussing key drivers of net sales, gross profit, operating expenses, and liquidity, alongside recent developments and forward-looking statements [Overview](index=26&type=section&id=Overview) Johnson Outdoors Inc. is a global manufacturer and marketer of branded seasonal outdoor recreation products, known for innovation and strong market positions, with strategic vision set by executive management and controlled by the Johnson-Leipold family - The Company is a leading global manufacturer and marketer of branded seasonal outdoor recreation products for fishing, diving, paddling, and camping[126](index=126&type=chunk) - The Company's brands have achieved leading market positions through continuous innovation, marketing excellence, product performance, and quality[126](index=126&type=chunk) [Recent Developments](index=27&type=section&id=Recent%20Developments) Recent developments include the assessment of potential impacts from new U.S. tariffs on imported goods and the newly signed One Big Beautiful Bill (OBBB) Act on the Company's effective tax rate - The Company is analyzing the potential negative impacts of additional U.S. tariffs on imported goods, which may increase costs and reduce profitability[127](index=127&type=chunk) - The Company is assessing the potential impact of the One Big Beautiful Bill (OBBB) Act, signed on July 4, 2025, on its estimated annual effective tax rate[128](index=128&type=chunk) [Highlights](index=27&type=section&id=Highlights) Key highlights for the third quarter of fiscal 2025 include a 5% increase in net sales, an improved gross margin of 37.6%, and a significant increase in operating profit, alongside the combination of the Camping and Watercraft Recreation segments and the acquisition of a scuba equipment manufacturer - Net sales for Q3 FY25 increased by **$8.183 million**, or **5%**, to **$180.655 million**, driven by innovation and new product success[129](index=129&type=chunk) - Gross margin improved to **37.6%** in Q3 FY25 from **35.8%** in the prior year quarter, contributing to a **$7.836 million** improvement in operating profit[129](index=129&type=chunk) - The Company combined its 'Camping' and 'Watercraft Recreation' segments into 'Camping & Watercraft Recreation' as of December 27, 2024[130](index=130&type=chunk) - The Diving segment completed a **$12.197 million** acquisition of a scuba equipment manufacturer in Q1 FY25, expected to provide new innovative products and enhance operating efficiencies[130](index=130&type=chunk) [Seasonality](index=27&type=section&id=Seasonality) The Company's business is seasonal, with the third fiscal quarter traditionally representing the primary selling season for its warm-weather outdoor recreation products - The Company's business is seasonal, with the third fiscal quarter typically being the primary selling season for warm-weather outdoor recreation products[131](index=131&type=chunk) Historical Seasonality (Net Sales % and Operating Profit % by Quarter) | Quarter Ended | 2024 Net Sales % | 2024 Operating Loss % | 2023 Net Sales % | 2023 Operating Profit (Loss) % | 2022 Net Sales % | 2022 Operating Profit % | | :------------ | :--------------- | :-------------------- | :--------------- | :----------------------------- | :--------------- | :---------------------- | | December | **23 %** | — % | **27 %** | **47 %** | **21 %** | **21 %** | | March | **30 %** | **1 %** | **30 %** | **97 %** | **26 %** | **23 %** | | June | **29 %** | **1 %** | **28 %** | **149 %** | **27 %** | **36 %** | | September | **18 %** | **98 %** | **15 %** | **(193)%** | **26 %** | **20 %** | | Total | **100 %** | **100 %** | **100 %** | **100 %** | **100 %** | **100 %** | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) This section analyzes the Company's financial performance, detailing changes in net sales, cost of sales, gross profit margin, operating expenses, interest, other income/expense, income tax, and net income/loss for the three and nine months ended June 27, 2025, compared to the prior year [Net Sales - Third Fiscal Quarter](index=28&type=section&id=Net%20Sales%20-%20Third%20Fiscal%20Quarter) Consolidated net sales for the third fiscal quarter increased by 5% year-over-year, primarily driven by new product introductions in the Fishing segment and success of new Jetboil products, despite the exit of the Eureka! brand - Consolidated net sales for the three months ended June 27, 2025, increased by **$8.183 million** (**5%**) to **$180.655 million**[137](index=137&type=chunk) - Fishing segment sales increased by **$10.142 million** (**8%**) to **$140.679 million**, mainly due to new product introductions[138](index=138&type=chunk) - Camping & Watercraft Recreation sales decreased by **$3.089 million** (**14%**) to **$18.908 million**, primarily due to the exit of the Eureka! brand (prior year Q3 included **$3.573 million** in Eureka! sales)[139](index=139&type=chunk) - Diving net sales increased by **$1.340 million** (**7%**) to **$21.201 million**, driven by modest market improvements and a **2%** favorable foreign currency translation impact[140](index=140&type=chunk) [Net Sales - Year-To-Date](index=28&type=section&id=Net%20Sales%20-%20Year-To-Date) Consolidated net sales for the nine-month period decreased by 6% year-over-year, primarily due to challenging market conditions in the Fishing segment and the discontinuation of the Eureka! brand in Camping & Watercraft Recreation, partially offset by modest improvements in Diving - Consolidated net sales for the nine months ended June 27, 2025, decreased by **$30.319 million** (**6%**) to **$456.653 million**[141](index=141&type=chunk) - Fishing segment sales decreased by **$21.595 million** (**6%**) to **$358.042 million**, as declines in the first two quarters offset third-quarter new product growth[142](index=142&type=chunk) - Camping & Watercraft Recreation sales decreased by **$6.760 million** (**13%**) to **$46.211 million**, mainly due to **$7.577 million** in Eureka! sales in the prior year that were not repeated[144](index=144&type=chunk) - Diving net sales declined by **$1.558 million** (**3%**) to **$52.705 million**, due to soft market demand in the first two fiscal quarters[145](index=145&type=chunk) [Cost of Sales](index=29&type=section&id=Cost%20of%20Sales) Cost of sales increased for the three-month period due to higher sales volumes but decreased for the nine-month period, reflecting lower sales volumes partially offset by a shift to higher-cost products - Cost of sales for the three months ended June 27, 2025, increased by **$2.078 million** to **$112.728 million**, primarily due to increased sales volumes[146](index=146&type=chunk) - Cost of sales for the nine months ended June 27, 2025, decreased by **$13.188 million** to **$297.677 million**, mainly due to decreased sales volumes, partially offset by a shift to higher-cost products[147](index=147&type=chunk) [Gross Profit Margin](index=29&type=section&id=Gross%20Profit%20Margin) Gross profit margin improved for the three-month period due to better overhead absorption from higher sales volumes but decreased for the nine-month period due to promotional pricing and a shift to lower-margin products - Gross profit as a percentage of net sales increased to **37.6%** for the three months ended June 27, 2025, from **35.8%** in the prior year, due to improved overhead absorption from higher sales volumes[148](index=148&type=chunk) - Gross profit as a percentage of net sales decreased to **34.8%** for the nine months ended June 27, 2025, from **36.2%** in the prior year, primarily due to promotional pricing on end-of-life products and a shift to higher-cost products[149](index=149&type=chunk) [Operating Expenses](index=29&type=section&id=Operating%20Expenses) Operating expenses decreased for both the three-month and nine-month periods, driven by lower commission rates, reduced promotional expenses, and decreased professional services, partially offset by changes in deferred compensation plan expenses - Operating expenses decreased by **$1.731 million** to **$60.597 million** for the three months ended June 27, 2025, mainly due to lower commission rates, reduced promotional expenses, and lower professional services, partially offset by a **$2.012 million** increase in deferred compensation expense[150](index=150&type=chunk) - Operating expenses decreased by **$9.836 million** to **$166.984 million** for the nine months ended June 27, 2025, due to decreased sales volume-driven expenses and a **$3.948 million** decrease in deferred compensation expense[151](index=151&type=chunk) [Operating Profit/Loss](index=29&type=section&id=Operating%20Profit%2FLoss) The Company reported an operating profit for the three-month period, a significant improvement from a loss in the prior year, driven by increased sales, gross margin improvements, and reduced operating expenses. However, the nine-month period saw an increased operating loss due to lower sales volumes and product mix shifts - Operating profit for the three months ended June 27, 2025, was **$7.330 million**, a significant improvement from an operating loss of **$506 thousand** in the prior year quarter[152](index=152&type=chunk) - Operating loss for the nine months ended June 27, 2025, was **$8.008 million**, compared to an operating loss of **$713 thousand** in the prior year, primarily due to lower sales volumes, promotional pricing, and a shift to lower-margin products[153](index=153&type=chunk) [Interest](index=29&type=section&id=Interest) Interest expense saw a slight increase, while interest income decreased for both the three-month and nine-month periods compared to the prior year Interest Expense and Income (thousands) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Nine Months Ended June 27, 2025 | Nine Months Ended June 28, 2024 | | :------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Interest expense | $49 | $37 | $164 | $115 | | Interest income | $927 | $1,123 | $2,585 | $3,178 | [Other Expense (Income), net](index=30&type=section&id=Other%20Expense%20(Income),%20net) Other income significantly increased for the three-month period due to higher net investment gains from the deferred compensation plan, but decreased for the nine-month period, primarily due to lower investment gains and the absence of a prior-year gain on asset sale - Other income for the three months ended June 27, 2025, was **$2.292 million**, an increase of **$1.965 million** from the prior year, mainly due to a **$2.012 million** increase in net investment gains on deferred compensation plan assets[156](index=156&type=chunk) - Other income for the nine months ended June 27, 2025, was **$1.318 million**, a decrease of **$6.150 million** from the prior year, primarily due to a **$3.948 million** decrease in net investment gains and a **$1.900 million** gain on the sale of a building in the prior year[157](index=157&type=chunk) [Income Tax Expense](index=30&type=section&id=Income%20Tax%20Expense) The Company's effective tax rate for the three months ended June 27, 2025, was an expense of 26.3%, while for the nine-month period, it was a benefit of 22.8%, reflecting significant changes from the prior year's corresponding periods Effective Income Tax Rates | Period | June 27, 2025 | June 28, 2024 | | :---------------- | :------------ | :------------ | | Three Months Ended| **26.3 %** | **(78.8)%** | | Nine Months Ended | **(22.8)%** | **21.2 %** | [Net Income/Loss](index=30&type=section&id=Net%20Income%2FLoss) Net income for the three months ended June 27, 2025, significantly increased, while the nine-month period resulted in a net loss, contrasting with a net income in the prior year's nine-month period - Net income for the three months ended June 27, 2025, was **$7.742 million**, or **$0.75** per diluted common share (Class A and B), up from **$1.622 million**, or **$0.16** per diluted share, in the prior year[159](index=159&type=chunk) - Net loss for the nine months ended June 27, 2025, was **$5.244 million**, or **$0.52** per diluted common share (Class A and B), compared to net income of **$7.733 million**, or **$0.75** per diluted share, in the prior year[159](index=159&type=chunk) [Liquidity and Financial Condition](index=30&type=section&id=Liquidity%20and%20Financial%20Condition) The Company's liquidity remains strong with no outstanding debt, an increase in cash and cash equivalents, and a significant reduction in inventories, while cash flows from operations improved, and investing activities shifted to a net use of cash due to an acquisition [Overview of Liquidity](index=30&type=section&id=Overview%20of%20Liquidity) The Company maintains a strong liquidity position with no outstanding debt, an increase in cash and short-term investments, and a notable reduction in inventories - Cash and cash equivalents and short-term investments totaled **$161.022 million** as of June 27, 2025, up from **$148.369 million** as of June 28, 2024[160](index=160&type=chunk) - The Company had **no debt outstanding** and a debt to total capitalization ratio of **0%** as of June 27, 2025, and June 28, 2024[160](index=160&type=chunk) - Inventories decreased by **$59.428 million** to **$163.732 million** as of June 27, 2025, reflecting ongoing efforts to reduce balances[161](index=161&type=chunk) [Operating Activities](index=32&type=section&id=Operating%20Activities) Cash provided by operating activities increased for the nine-month period, primarily due to working capital reductions, partially offset by lower income from decreased sales volumes - Cash provided by operations totaled **$32.810 million** for the nine months ended June 27, 2025, an increase from **$21.899 million** in the prior year period[164](index=164&type=chunk) - The increase in cash from operations was primarily due to cash provided by working capital reductions, partially offset by lower income on decreased sales volumes[164](index=164&type=chunk) [Investing Activities](index=32&type=section&id=Investing%20Activities) Investing activities shifted from providing cash to using cash for the nine-month period, mainly due to a business acquisition, partially offset by investment maturities, with capital expenditures decreasing - Cash used for investing activities totaled **$10.002 million** for the nine months ended June 27, 2025, compared to cash provided of **$3.225 million** in the prior year[165](index=165&type=chunk) - Current year investing activities reflect **$12.197 million** paid for a business acquisition, partially offset by **$14.021 million** from investment maturities[165](index=165&type=chunk) - Capital expenditures decreased to **$11.826 million** for the nine months ended June 27, 2025, from **$16.449 million** in the prior year[165](index=165&type=chunk) [Financing Activities](index=32&type=section&id=Financing%20Activities) Cash used for financing activities remained consistent year-over-year, primarily reflecting dividend payments and treasury stock purchases, with no outstanding debt - Cash used for financing activities totaled **$10.142 million** for the nine months ended June 27, 2025, consistent with **$10.136 million** in the prior year, mainly for dividends and treasury stock purchases[166](index=166&type=chunk) - The Company held approximately **$66.152 million** of cash, cash equivalents, and short-term investments in foreign taxing jurisdictions as of June 27, 2025[167](index=167&type=chunk) [Contractual Obligations and Off Balance Sheet Arrangements](index=32&type=section&id=Contractual%20Obligations%20and%20Off%20Balance%20Sheet%20Arrangements) The Company's contractual obligations include operating leases and purchase orders, with no significant changes outside the ordinary course of business, and it utilizes letters of credit for workers' compensation insurance - The Company has contractual obligations and commitments under operating leases and open purchase orders, with no significant changes during the quarter[168](index=168&type=chunk) - Letters of credit outstanding for workers' compensation insurance totaled approximately **$67 thousand** as of June 27, 2025, and June 28, 2024[169](index=169&type=chunk) - The Company has no other off-balance sheet arrangements[170](index=170&type=chunk) [Critical Accounting Policies and Estimates](index=32&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There were no significant changes to the Company's critical accounting policies and estimates during the nine months ended June 27, 2025 - No significant changes occurred in the Company's critical accounting policies and estimates during the nine months ended June 27, 2025[171](index=171&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The Company is exposed to market risks related to foreign currency exchange rates, interest rates, commodity prices, and inflation, with no significant changes in these exposures during the nine months ended June 27, 2025 - The Company is exposed to market risks in foreign currency exchange rates, interest rates, commodity prices, and inflation[172](index=172&type=chunk) - There have been no significant changes to the Company's market risk during the nine months ended June 27, 2025[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) The Company's management, including the CEO and CFO, concluded that its disclosure controls and procedures were effective at a reasonable assurance level as of June 27, 2025, with no material changes to internal control over financial reporting during the last fiscal quarter - The Company's disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of June 27, 2025[175](index=175&type=chunk) - No changes in the Company's internal control over financial reporting occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[176](index=176&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in various legal proceedings in the normal course of business but does not anticipate any material adverse effect on its financial statements from their ultimate disposition - The Company is involved in various legal proceedings in the normal course of business[177](index=177&type=chunk) - Management does not believe the final outcome of any pending litigation will have a material adverse effect on the Company's financial statements[177](index=177&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended September 27, 2024 - No material changes to the risk factors disclosed in the Company's Form 10-K for the fiscal year ending September 27, 2024[178](index=178&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement, nor did the Company adopt or terminate any such arrangement during the three-month period ended June 27, 2025 - No director or officer, nor the Company, adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 27, 2025[179](index=179&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, amendments to credit agreements, certifications, and XBRL formatted financial data - Exhibits include Articles of Incorporation, Bylaws, Second Amendment to Amended and Restated Credit Agreement, Certifications by CEO and CFO, and XBRL formatted financial statements[186](index=186&type=chunk)

Financial Data and Key Metrics Changes - Sales in the third fiscal quarter increased by 5% to $180.7 million compared to $172.5 million in the prior year [5] - Operating profit rose significantly to $7.3 million from an operating loss in the previous third quarter [6] - Gross margin improved to 37.6%, up 1.8 points from last year's quarter [11] - Operating expenses decreased by $1.7 million compared to the prior year, with a notable reduction in promotion and professional services expenses [11][12] - Inventory balance as of June was $163.7 million, down approximately $59.4 million from last year's third quarter [12] Business Line Data and Key Metrics Changes - In the fishing business, demand for new products like Humminbird's Megalive two sonar and Explorer Fish Finder exceeded expectations, with the Explorer series winning best in electronics at ICAST [6][7] - The camping and watercraft business saw strong performance from Old Town and Jetboil brands, with orders for Jetboil's new cooking systems outpacing expectations [7] - Diving business results improved slightly amid stronger market conditions, although challenges remain due to uncertainties in the global economy [9] Market Data and Key Metrics Changes - The watercraft marketplace remains weak, but Old Town continues to show resilience [7] - The diving marketplace faces challenges due to global economic uncertainties and consumer travel [9] Company Strategy and Development Direction - The company is focused on innovation, operational efficiencies, and e-commerce to drive future growth [10] - The management emphasizes the importance of maintaining a debt-free balance sheet and solid cash position to support long-term value creation [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while the marketplace is fluctuating, positive results reinforce the importance of investment in innovation [6] - There is cautious optimism about the upcoming quarter, with hopes for stability in the next season [15] - Management acknowledged the dynamic tariff environment and its potential impact on costs moving forward [16][17] Other Important Information - The company is committed to driving optimal product costs and enhancing operational efficiency [12] - Recognition at industry events like ICAST is expected to contribute positively to demand [23] Q&A Session Summary Question: Can you comment on the cadence of sales throughout the quarter? - Management observed improvement in sales every month during the quarter, with hopes for a strong finish to the season [15] Question: What is the expected impact of tariffs going forward? - Management anticipates more costs in the fourth quarter due to tariffs but is ready to mitigate these as the situation evolves [16][17] Question: What pricing actions have been taken to mitigate tariff impacts? - Pricing adjustments have been made on certain product lines, with ongoing evaluations based on consumer dynamics and competition [19] Question: Can you provide an update on the cost savings program? - The cost savings program remains robust, focusing on factory efficiencies and product cost improvements [20] Question: Can the company sustain reduced promotional activity? - Management indicated that while competitive markets require promotional tactics, they aim to maintain lower discounting where possible [21] Question: Has the recognition at ICAST led to increased demand? - Management confirmed that recognition at ICAST has positively impacted momentum and demand for the Explorer Fish Finder [22] Question: Is there potential for further inventory reduction? - Management is optimistic about further inventory reductions but acknowledges macroeconomic challenges [24][25]

Financial Data and Key Metrics Changes - Sales in the third fiscal quarter increased by 5% to $180.7 million compared to $172.5 million in the prior year [5] - Operating profit rose significantly to $7.3 million from an operating loss in the previous third quarter [6] - Gross margin improved to 37.6%, up 1.8 points from last year's quarter [11] - Operating expenses decreased by $1.7 million compared to the prior year, with a notable reduction in promotion and professional services expenses [11][12] - Inventory balance as of June was $163.7 million, down approximately $59.4 million from last year's third quarter [12] Business Line Data and Key Metrics Changes - In the fishing business, demand for new products like Humminbird's Megalive two sonar and Explorer Fish Finder exceeded expectations, with the Explorer series winning best in electronics at ICAST [6][7] - The camping and watercraft business saw strong performance from Old Town and Jetboil brands, with orders for Jetboil's new cooking systems outpacing expectations [7] - Diving business results improved slightly amid stronger market conditions, although challenges remain due to uncertainties in the global economy [8][9] Market Data and Key Metrics Changes - The watercraft marketplace remains weak, but Old Town continues to show resilience [7] - The diving marketplace faces challenges due to uncertainties in consumer travel and the global economy [8] Company Strategy and Development Direction - The company is focused on innovation, operational efficiencies, and e-commerce to drive future growth [10] - The company maintains a debt-free balance sheet and solid cash position, which supports its strategic priorities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the positive sales trend throughout the quarter and hopes for stability in the upcoming season [15] - There are expectations of increased costs due to tariffs in the fourth quarter, but the company is prepared to mitigate these impacts [18] - Management is committed to ongoing cost savings initiatives and operational efficiencies [20] Other Important Information - The company is integrating a long-term supplier acquired at the beginning of the fiscal year, which is expected to deliver planned benefits [9] Q&A Session Summary Question: Can you comment on the cadence of sales throughout the quarter and July's performance? - Management noted a positive sales trend every month during the quarter and hopes for a good end to the season [15] Question: What is the expected impact of tariffs going forward? - Management anticipates more costs in the fourth quarter due to tariffs but is ready to mitigate these as the situation evolves [18] Question: Can you provide an update on the cost savings program? - The cost savings program is robust, with ongoing factory efficiencies and product cost improvements [20] Question: Can you sustain the trend of lower promotional activity? - Management indicated that while they are in competitive markets, promotional tactics will be adjusted based on market conditions [21] Question: Have recent awards led to an uptick in demand? - Recognition at ICAST has added momentum, and management is optimistic about the impact on sales [22] Question: Can further inventory reductions be achieved? - Management is confident in their ability to manage inventory levels but acknowledges macroeconomic challenges [25]

Company Performance - Johnson Outdoor reported quarterly earnings of $0.75 per share, significantly exceeding the Zacks Consensus Estimate of $0.24 per share, representing an earnings surprise of +212.50% [1] - The company posted revenues of $180.66 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.29% and showing an increase from $172.47 million year-over-year [2] - Over the last four quarters, Johnson Outdoor has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Outlook - Johnson Outdoor shares have increased by approximately 0.6% since the beginning of the year, underperforming compared to the S&P 500's gain of 7.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.68 on revenues of $120.32 million, and for the current fiscal year, it is -$1.70 on revenues of $572.94 million [7] Industry Context - The Leisure and Recreation Products industry, to which Johnson Outdoor belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Johnson Outdoor's stock performance [5]

[Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes positive Q3 results to innovation, digital presence, and operational efficiency, prioritizing margin strengthening and brand positioning for future growth - CEO Helen Johnson-Leipold attributes the quarter's positive results to the company's investment in market-winning innovation and progress against strategic priorities: innovation, digital/ecommerce, and operational efficiency[2](index=2&type=chunk) - CFO David W. Johnson emphasized the benefits of improved operational efficiency in strengthening margins and managing working capital, with the company actively developing strategies to mitigate potential cost increases from tariffs[10](index=10&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) Q3 net sales rose 5% with operating profit turning to $7.3 million, contrasting with a 6.2% YTD sales decline and increased operating loss [Third Quarter Results (Q3 FY2025)](index=1&type=section&id=Third%20Quarter%20Results%20(Q3%20FY2025)) Q3 FY2025 net sales rose 5% to $180.7 million, operating profit turned to $7.3 million, and net income surged to $7.7 million ($0.75 EPS) Q3 Fiscal 2025 vs. Q3 Fiscal 2024 Performance | Metric | Q3 FY2025 ($) | Q3 FY2024 ($) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $180.7 million | $172.5 million | +5.0% | | Gross Margin | 37.6% | 35.8% | +1.8 pts | | Operating Profit (Loss) | $7.3 million | ($0.5 million) | N/A | | Net Income | $7.7 million | $1.6 million | +381% | | Diluted EPS | $0.75 | $0.16 | +369% | - Gross margin improved primarily due to better overhead absorption from higher sales volumes and lower product discounting[4](index=4&type=chunk) - Operating expenses decreased by **$1.7 million** to **$60.6 million**, mainly due to lower promotions and professional services costs[4](index=4&type=chunk) [Year-to-Date Results (YTD FY2025)](index=1&type=section&id=Year-to-Date%20Results%20(YTD%20FY2025)) YTD FY2025 net sales decreased 6.2% to $456.7 million, resulting in a net loss of $5.2 million ($0.52 EPS) due to lower sales and reduced gross margin YTD Fiscal 2025 vs. YTD Fiscal 2024 Performance | Metric | YTD FY2025 ($) | YTD FY2024 ($) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $456.7 million | $487.0 million | -6.2% | | Gross Margin | 34.8% | 36.2% | -1.4 pts | | Operating Loss | ($8.0 million) | ($0.7 million) | -1042% | | Net (Loss) Income | ($5.2 million) | $7.7 million | N/A | | Diluted (Loss) EPS | ($0.52) | $0.75 | N/A | - Other Income decreased by **$6.2 million** year-to-date, contributing to the pre-tax loss, primarily due to a **$3.9 million** decrease in earnings on the deferred compensation plan and a **$1.9 million** gain on a building sale in the prior year[7](index=7&type=chunk) [Business Segment Performance](index=1&type=section&id=Business%20Segment%20Performance) Q3 revenue growth was led by Fishing (8%) and Diving (7%), while Camping & Watercraft Recreation declined 14% due to the Eureka! business exit Q3 FY2025 Net Sales by Segment (in thousands) | Segment | Q3 FY2025 (thousands $) | Q3 FY2024 (thousands $) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Fishing | $140,679 | $130,537 | +8% | | Camping & Watercraft Rec. | $18,908 | $21,997 | -14% | | Diving | $21,201 | $19,861 | +7% | - Fishing revenue growth was driven by the continued success of new products[8](index=8&type=chunk) - The decline in Camping & Watercraft Recreation was primarily due to the exit of the Eureka! Business; excluding this impact, sales would have improved by **3%**[8](index=8&type=chunk) - Diving revenue increased due to stronger market conditions and a **2%** positive impact from favorable currency translation[8](index=8&type=chunk) [Financial Position and Other Information](index=1&type=section&id=Financial%20Position%20and%20Other%20Information) As of June 27, 2025, the company maintained a strong, debt-free balance sheet with $161.0 million in cash and short-term investments and significantly reduced inventories Key Balance Sheet Items (End of Period) | Metric | June 27, 2025 ($) | June 28, 2024 ($) | | :--- | :--- | :--- | | Cash & Short-term Investments | $161.0 million | $148.4 million | | Inventories, net | $163.7 million | $223.2 million | | Total Assets | $634.5 million | $679.8 million | | Total Liabilities | $184.0 million | $181.2 million | | Shareholders' Equity | $450.5 million | $498.7 million | - Capital spending for the first nine months of fiscal 2025 totaled **$11.8 million**, compared to **$16.4 million** in the prior year period[8](index=8&type=chunk)[9](index=9&type=chunk) - In June 2025, the Board of Directors approved a quarterly cash dividend, which was paid in July 2025[9](index=9&type=chunk) [Corporate Updates](index=2&type=section&id=Corporate%20Updates) Humminbird's new XPLORE fish finder series won the 'Best of Electronics' award at 2025 ICAST, with a conference call scheduled for August 1, 2025 - Humminbird's new XPLORE fish finder series received the "Best of Electronics" award at the 2025 ICAST, the world's most prestigious fishing show[11](index=11&type=chunk) - The company will host a conference call and webcast to discuss the results at 11:00 a.m. Eastern Time on Friday, August 1, 2025[12](index=12&type=chunk)

Core Viewpoint - Johnson Outdoors Inc. is set to release its financial results for the Fiscal 2025 third quarter on August 1, 2025, before market opening, followed by a conference call to discuss the results and provide company updates [1]. Company Overview - Johnson Outdoors Inc. is a leading global innovator in outdoor recreation equipment and technologies, aiming to inspire more people to enjoy the outdoors [3]. - The company designs, manufactures, and markets a diverse portfolio of consumer-preferred brands across four categories: Watercraft Recreation, Fishing, Diving, and Camping [3]. - Iconic brands under Johnson Outdoors include Old Town canoes and kayaks, Carlisle paddles, Minn Kota trolling motors, Cannon downriggers, Humminbird marine electronics, SCUBAPRO dive equipment, and Jetboil outdoor cooking systems [3]. Conference Call Details - A live listen-only webcast of the conference call will be available on Johnson Outdoors' homepage, with a replay accessible for 30 days in the Investor section of the website [2].

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Johnson Outdoors Inc.'s unaudited condensed consolidated financial statements for the three and six months ended March 28, 2025, and March 29, 2024, including statements of operations, comprehensive income (loss), balance sheets, shareholders' equity, and cash flows, along with detailed notes explaining accounting policies and significant financial events [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | (thousands, except per share data) | Three Months Ended March 28, 2025 | Three Months Ended March 29, 2024 | Six Months Ended March 28, 2025 | Six Months Ended March 29, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | $ 168,349 | $ 175,856 | $ 275,998 | $ 314,500 | | Gross profit | 58,866 | 61,431 | 91,049 | 114,285 | | Operating profit (loss) | 4,901 | (253) | (15,338) | (207) | | Profit (loss) before income taxes | 4,158 | 3,012 | (14,769) | 8,911 | | Net income (loss) | $ 2,304 | $ 2,156 | $ (12,986) | $ 6,111 | | Net income (loss) per common share - Diluted: Class A | $ 0.22 | $ 0.21 | $ (1.26) | $ 0.59 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) | (thousands) | Three Months Ended March 28, 2025 | Three Months Ended March 29, 2024 | Six Months Ended March 28, 2025 | Six Months Ended March 29, 2024 | | :------------------------------ | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $ 2,304 | $ 2,156 | $ (12,986) | $ 6,111 | | Other comprehensive income (loss): | | | | | | Foreign currency translation | 1,133 | 2,379 | (3,782) | 680 | | Unrealized (loss) gain on available-for-sale securities, net of tax | (4) | (18) | (5) | 84 | | Change in pension plans, net of tax | 7 | 8 | 16 | 15 | | Total other comprehensive income (loss) | 1,136 | 2,369 | (3,771) | 779 | | Total comprehensive income (loss) | $ 3,440 | $ 4,525 | $ (16,757) | $ 6,890 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | (thousands, except share data) | March 28, 2025 | September 27, 2024 | March 29, 2024 | | :----------------------------- | :------------- | :----------------- | :------------- | | **ASSETS** | | | | | Total current assets | $ 407,079 | $ 428,728 | $ 477,329 | | Total assets | $ 624,474 | $ 635,212 | $ 691,678 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | | Total current liabilities | $ 104,833 | $ 90,444 | $ 108,532 | | Total liabilities | $ 183,372 | $ 171,788 | $ 191,589 | | Total shareholders' equity | $ 441,102 | $ 463,424 | $ 500,089 | | Total liabilities and shareholders' equity | $ 624,474 | $ 635,212 | $ 691,678 | [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) | (thousands except for shares) | Balance at September 27, 2024 | Net loss | Dividends declared | Stock-based compensation | Currency translation adjustment | Balance at March 28, 2025 | | :---------------------------- | :---------------------------- | :------- | :----------------- | :----------------------- | :------------------------------ | :------------------------ | | Common Stock | $ 517 | — | — | 1 | — | $ 521 | | Capital in Excess of Par Value | $ 90,146 | — | — | 1,256 | — | $ 91,599 | | Retained Earnings | $ 369,592 | (12,986) | (6,734) | — | — | $ 349,872 | | Accumulated Other Comprehensive Income (Loss) | $ 5,964 | — | — | — | (3,782) | $ 2,193 | | Treasury Stock | $ (2,795) | — | — | (288) | — | $ (3,083) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | (thousands) | Six Months Ended March 28, 2025 | Six Months Ended March 29, 2024 | | :-------------------------------------------- | :------------------------------ | :------------------------------ | | CASH USED FOR OPERATING ACTIVITIES | $ (38,566) | $ (51,764) | | CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | $ (7,749) | $ 7,031 | | CASH USED FOR FINANCING ACTIVITIES | $ (6,879) | $ (6,945) | | Effect of foreign currency rate changes on cash | $ (2,668) | $ 180 | | Decrease in cash and cash equivalents | $ (55,862) | $ (51,498) | | CASH AND CASH EQUIVALENTS End of period | $ 89,636 | $ 60,356 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on the Company's accounting policies, financial statement components, and significant transactions, including earnings per share calculations, stock-based compensation, lease obligations, income taxes, inventory valuation, goodwill, warranties, indebtedness, fair value measurements, marketable securities, new accounting pronouncements, revenue recognition, segment reporting, accumulated other comprehensive income, and recent acquisitions [1 BASIS OF PRESENTATION](index=10&type=section&id=1%20BASIS%20OF%20PRESENTATION) The condensed consolidated financial statements are unaudited and include all normal recurring adjustments necessary for fair presentation. They should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended September 27, 2024 - The financial statements are unaudited and include only normal recurring adjustments, consistent with prior filings[24](index=24&type=chunk) [2 ACCOUNTS RECEIVABLE](index=10&type=section&id=2%20ACCOUNTS%20RECEIVABLE) Accounts receivable are reported net of allowances for credit losses, which are determined based on specific collection concerns and historical bad debt experience. The Company typically does not require collateral | Allowance for Credit Losses (thousands) | March 28, 2025 | September 27, 2024 | March 29, 2024 | | :-------------------------------------- | :------------- | :----------------- | :------------- | | Allowance for credit losses | $ 692 | $ 3,543 | $ 749 | [3 EARNINGS PER SHARE ("EPS")](index=10&type=section&id=3%20EARNINGS%20PER%20SHARE%20(%22EPS%22)) EPS is computed using the two-class method, with Class A shares receiving 110% of Class B dividends. Basic and diluted EPS were the same for both classes due to no cumulative undistributed earnings or net losses being allocated equally among participating securities - Basic and diluted EPS for Class A and Class B shares were identical for the three and six months ended March 28, 2025, and March 29, 2024, due to the absence of cumulative undistributed earnings[30](index=30&type=chunk)[32](index=32&type=chunk) | Dividends declared per common share | Three Months Ended March 28, 2025 | Three Months Ended March 29, 2024 | Six months ended March 28, 2025 | Six months ended March 29, 2024 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Class A | $ 0.33 | $ 0.33 | $ 0.66 | $ 0.66 | | Class B | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 | [4 STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS](index=11&type=section&id=4%20STOCK-BASED%20COMPENSATION%20AND%20STOCK%20OWNERSHIP%20PLANS) The Company operates stock ownership plans for executives and directors, issuing non-vested restricted stock and restricted stock units (RSUs). Compensation expense is recognized over the vesting period, with RSUs tied to financial performance goals. The Company also has an Employees' Stock Purchase Plan | Non-vested stock activity (six months ended March 28, 2025) | Shares | Weighted Average Grant Price | | :------------------------------------------ | :------- | :--------------------------- | | Non-vested stock at September 27, 2024 | 56,389 | $ 59.69 | | Non-vested stock grants | 67,312 | $ 30.20 | | Restricted stock vested | (24,357) | $ 54.60 | | Forfeitures | (3,690) | $ 54.20 | | Non-vested stock at March 28, 2025 | 95,654 | $ 40.44 | | RSU activity (six months ended March 28, 2025) | Number of RSUs | Weighted Average Grant Price | | :--------------------------------------------- | :------------- | :--------------------------- | | RSUs at September 27, 2024 | 84,192 | $ 64.58 | | RSUs granted | 57,792 | $ 33.14 | | RSUs vested and canceled due to performance targets not being met | (17,041) | $ 101.22 | | RSU's forfeited | (3,690) | $ 54.20 | | RSUs at March 28, 2025 | 121,253 | $ 44.76 | - Stock compensation expense for non-vested stock was **$462 thousand** (3 months) and **$816 thousand** (6 months) for March 28, 2025, compared to $322 thousand and $750 thousand for March 29, 2024. RSU compensation expense was **$160 thousand** (3 months) and **$276 thousand** (6 months) for March 28, 2025, while the prior year periods recognized income due to unmet performance conditions[41](index=41&type=chunk)[44](index=44&type=chunk) [5 LEASES](index=13&type=section&id=5%20LEASES) The Company leases facilities and equipment under non-cancelable operating leases, with terms up to 14 years. Lease costs include operating, short-term, and variable components. As of March 28, 2025, the Company had no finance leases or significant new leases | Lease Cost (thousands) | Three months ended March 28, 2025 | Three months ended March 29, 2024 | Six months ended March 28, 2025 | Six months ended March 29, 2024 | | :--------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Operating lease costs | $ 2,647 | $ 2,476 | $ 5,271 | $ 4,941 | | Short-term lease costs | 561 | 599 | 1,128 | 1,226 | | Variable lease costs | 50 | 43 | 99 | 86 | | Total lease cost | $ 3,118 | $ 3,258 | $ 6,498 | $ 6,253 | | Operating Leases (thousands) | March 28, 2025 | March 29, 2024 | | :--------------------------- | :------------- | :------------- | | Operating lease ROU assets | $ 46,978 | $ 50,880 | | Total operating lease liabilities | $ 48,825 | $ 52,597 | | Weighted average remaining lease term (in years) | 10.59 | 11.28 | | Weighted average discount rate | 3.4 % | 3.2 % | [6 INCOME TAXES](index=15&type=section&id=6%20INCOME%20TAXES) The Company's effective income tax rate fluctuates due to changes in the geographic mix of profits/losses and the recording of unrecognized tax benefits. Valuation allowances are maintained for certain foreign tax jurisdictions (Indonesia, Switzerland) where realization of deferred tax assets is uncertain | (thousands, except tax rate data) | Three Months Ended March 28, 2025 | Three Months Ended March 29, 2024 | Six Months Ended March 28, 2025 | Six Months Ended March 29, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Profit (loss) before income taxes | $ 4,158 | $ 3,012 | $ (14,769) | $ 8,911 | | Income tax (benefit) expense | 1,854 | 856 | (1,783) | 2,800 | | Effective income tax rate | 44.6 % | 28.4 % | 12.1 % | 31.4 % | - The effective tax rate for the three months ended March 28, 2025, increased to **44.6%** from 28.4% in the prior year, primarily due to an unrecognized tax benefit and changes in the geographic mix of profits/losses. For the six months, it shifted from a 31.4% expense to a **12.1% benefit**[57](index=57&type=chunk) [7 INVENTORIES](index=16&type=section&id=7%20INVENTORIES) Inventories are valued at the lower of cost (FIFO method) or net realizable value, consisting of raw materials and finished goods | Inventories (thousands) | March 28, 2025 | September 27, 2024 | March 29, 2024 | | :---------------------- | :------------- | :----------------- | :------------- | | Raw materials | $ 96,172 | $ 103,780 | $ 119,981 | | Finished goods | 83,885 | 106,008 | 129,220 | | Total | $ 180,057 | $ 209,788 | $ 249,201 | [8 GOODWILL](index=16&type=section&id=8%20GOODWILL) Goodwill is evaluated annually for impairment using the income approach. The Fishing reporting unit's goodwill was impaired in Q4 fiscal 2024, reducing its balance to zero. New goodwill of $10,231 thousand was recognized from the acquisition of Endless Summer Technologies Proprietary, Ltd. in the current period | Goodwill (thousands) | March 28, 2025 | March 29, 2024 | | :------------------------------- | :------------- | :------------- | | Balance at beginning of period | $ — | $ 11,172 | | Acquisitions | 10,231 | — | | Amount attributable to movements in foreign currency rates | (341) | (5) | | Balance at end of period | $ 9,890 | $ 11,167 | - A goodwill impairment charge was recognized in Q4 fiscal 2024 for the Fishing reporting unit, reducing its carrying value to **$0** as of September 27, 2024, due to reduced cash flow projections[67](index=67&type=chunk) [9 WARRANTIES](index=16&type=section&id=9%20WARRANTIES) The Company provides warranties on its products, with expense accruals and claims paid impacting the warranty liability | Warranty Activity (thousands) | March 28, 2025 | March 29, 2024 | | :---------------------------- | :------------- | :------------- | | Balance at beginning of period | $ 10,211 | $ 11,741 | | Expense accruals for warranties issued during the period | 5,793 | 3,431 | | Less current period warranty claims paid | (3,938) | (4,187) | | Balance at end of period | $ 12,066 | $ 10,985 | [10 CONTINGENCIES](index=17&type=section&id=10%20CONTINGENCIES) The Company is involved in various legal actions in the normal course of business but does not anticipate any material adverse effect on its financial condition or results of operations from pending litigation - Management believes the final outcome of any pending litigation will not have a material adverse effect on the Company's financial condition, results of operations, liquidity, or cash flows[71](index=71&type=chunk) [11 INDEBTEDNESS](index=17&type=section&id=11%20INDEBTEDNESS) The Company had no debt outstanding as of March 28, 2025, September 27, 2024, or March 29, 2024. Its unsecured credit facility (Revolver) was reduced to $50 million in January 2025, with modified terms during the Second Amendment Period, including a $50 million minimum cash balance requirement - The Company had **no debt outstanding** at March 28, 2025, September 27, 2024, or March 29, 2024[72](index=72&type=chunk) - On January 29, 2025, the Company's Revolving Credit Facility was reduced from **$75 million to $50 million**, while maintaining a $50 million accordion feature[73](index=73&type=chunk) - During the Second Amendment Period, the Company must maintain a **$50 million minimum cash balance**, and the interest rate on borrowings is SOFR plus a **1.75%** applicable margin[75](index=75&type=chunk)[77](index=77&type=chunk) [12 FAIR VALUE MEASUREMENTS](index=18&type=section&id=12%20FAIR%20VALUE%20MEASUREMENTS) Fair value is measured using a three-level hierarchy. Rabbi trust assets (Level 1) and marketable securities (Level 2) are measured at fair value. Changes in fair value of Rabbi trust assets resulted in a $2,765 thousand expense for the six months ended March 28, 2025, compared to a $4,772 thousand income in the prior year | Financial Assets Measured at Fair Value (thousands) | March 28, 2025 | September 27, 2024 | March 29, 2024 | | :-------------------------------------------------- | :------------- | :----------------- | :------------- | | Rabbi trust assets (Level 1) | $ 27,396 | $ 29,059 | $ 27,139 | | Marketable securities (Level 2) | 4,315 | 16,541 | 26,071 | | Total | $ 31,711 | $ 45,600 | $ 53,210 | | Effect of changes in fair value (thousands) | Three Months Ended March 28, 2025 | Three Months Ended March 29, 2024 | Six months ended March 28, 2025 | Six months ended March 29, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Rabbi trust assets (Other (expense) income, net) | $ (1,277) | $ 2,100 | $ (2,765) | $ 4,772 | [13 CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES](index=19&type=section&id=13%20CASH,%20CASH%20EQUIVALENTS,%20AND%20MARKETABLE%20SECURITIES) Cash equivalents are short-term investments with original maturities of three months or less. Marketable securities are classified as available-for-sale, reported at fair value with unrealized gains/losses in OCI. As of March 28, 2025, all marketable securities were fixed-rate Canadian Government Bonds maturing within one year | Marketable Securities (thousands) | March 28, 2025 | September 27, 2024 | March 29, 2024 | | :-------------------------------- | :------------- | :----------------- | :------------- | | Fixed rate Canadian Government Bonds | $ 4,315 | $ 9,045 | $ 11,150 | | Fixed rate US Government Bonds | $ — | $ 7,496 | $ 14,921 | | Total Fair Value | $ 4,315 | $ 16,541 | $ 26,071 | - Proceeds from maturities of available-for-sale securities were **$11,826 thousand** for the six months ended March 28, 2025, down from $15,000 thousand in the prior year period[89](index=89&type=chunk) [14 NEW ACCOUNTING PRONOUNCEMENTS](index=20&type=section&id=14%20NEW%20ACCOUNTING%20PRONOUNCEMENTS) The Company is evaluating the potential impact of recently issued accounting pronouncements, including ASU 2024-03 (Expense Disaggregation Disclosures), SEC Final Rulemaking Release No. 33-11275 (Climate-Related Disclosures), ASU 2023-09 (Income Tax Disclosures), and ASU 2023-07 (Segment Reporting) - The Company is evaluating ASU 2024-03 (Expense Disaggregation Disclosures), effective fiscal 2028, and SEC Final Rulemaking Release No. 33-11275 (Climate-Related Disclosures), effective fiscal 2027[91](index=91&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk) - ASU 2023-09 (Income Tax Disclosures) is effective for the Company in fiscal 2026, and ASU 2023-07 (Segment Reporting) is effective in fiscal 2025, both with early adoption permitted[95](index=95&type=chunk)[96](index=96&type=chunk) [15 REVENUES](index=21&type=section&id=15%20REVENUES) Revenue is recognized when control of goods transfers to the customer, typically at shipment. Variable consideration, such as customer incentives and returns, is estimated and adjusted. The Company expenses incremental costs of obtaining contracts due to their short-term nature and accounts for shipping and handling as fulfillment costs - Revenue is recognized at a point in time when control of goods transfers, based on shipping terms and transfer of title[97](index=97&type=chunk) - Estimated costs of returns, allowances, and discounts are accrued as a reduction to sales when revenue is recognized[99](index=99&type=chunk) | Returns and Accrued Liabilities (thousands) | March 28, 2025 | March 29, 2024 | | :------------------------------------------ | :------------- | :------------- | | Right to returns asset | $ 1,615 | $ 1,266 | | Accrued returns liability | $ 4,283 | $ 3,362 | [16 SEGMENTS OF BUSINESS](index=22&type=section&id=16%20SEGMENTS%20OF%20BUSINESS) The Company combined its 'Camping' and 'Watercraft Recreation' segments into 'Camping & Watercraft Recreation' as of December 27, 2024, to align with how the CODM assesses performance. Segment net sales and operating profit include both external sales and interunit transfers - The Company combined its 'Camping' and 'Watercraft Recreation' segments into a single 'Camping & Watercraft Recreation' segment as of December 27, 2024, for financial reporting purposes[104](index=104&type=chunk) | Net Sales by Segment (thousands) | Three Months Ended March 28, 2025 | Three Months Ended March 29, 2024 | Six Months Ended March 28, 2025 | Six Months Ended March 29, 2024 | | :------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Fishing | $ 134,462 | $ 138,466 | $ 216,895 | $ 248,827 | | Camping & Watercraft Recreation | 17,826 | 20,232 | 27,269 | 30,915 | | Diving | 15,814 | 16,918 | 31,494 | 34,392 | | Total Unaffiliated Customers | $ 168,102 | $ 175,616 | $ 275,658 | $ 314,134 | | Operating Profit (Loss) by Segment (thousands) | Three Months Ended March 28, 2025 | Three Months Ended March 29, 2024 | Six Months Ended March 28, 2025 | Six Months Ended March 29, 2024 | | :--------------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Fishing | $ 9,469 | $ 7,427 | $ 1,208 | $ 18,956 | | Camping & Watercraft Recreation | 1,246 | 1,223 | 600 | (497) | | Diving | (413) | (298) | (1,321) | (876) | | Other / Corporate | (5,401) | (8,605) | (15,825) | (17,790) | | Total | $ 4,901 | $ (253) | $ (15,338) | $ (207) | [17 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)](index=23&type=section&id=17%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) Accumulated Other Comprehensive Income (AOCI) includes foreign currency translation adjustments, unrealized gains/losses on available-for-sale securities, and changes in pension plans. For the six months ended March 28, 2025, AOCI decreased from $5,964 thousand to $2,193 thousand, primarily due to foreign currency translation losses | AOCI Components (thousands) | Balance at September 27, 2024 | Other comprehensive loss before reclassifications | Amounts reclassified from AOCI | Tax effects | Balance at March 28, 2025 | | :-------------------------- | :---------------------------- | :------------------------------------------------ | :----------------------------- | :---------- | :------------------------ | | Foreign Currency Translation Adjustment | $ 6,056 | (4,915) | — | — | $ 2,274 | | Unrealized gain (loss) on available for sale securities | 17 | (1) | — | — | 12 | | Unamortized Loss on Defined Benefit Pension Plans | (109) | — | 21 | (5) | (93) | | Total | $ 5,964 | (4,916) | 21 | (5) | $ 2,193 | [18 ACQUISITIONS](index=24&type=section&id=18%20ACQUISITIONS) On October 25, 2024, the Company acquired Endless Summer Technologies Proprietary, Ltd. (EST) for approximately $12,197 thousand, funded by existing cash. This acquisition, included in the Diving segment, is expected to bring innovative products and enhance operating efficiencies. Provisional fair values of acquired assets and liabilities have been determined - The Company acquired Endless Summer Technologies Proprietary, Ltd. (EST) on October 25, 2024, for approximately **$12,197 thousand**, funded with existing cash[112](index=112&type=chunk)[113](index=113&type=chunk) - The EST acquisition is included in the Diving segment and is expected to provide new innovative products, unlock synergies, and enhance operating efficiencies[112](index=112&type=chunk) | Recognized amounts of identifiable assets acquired and liabilities assumed (thousands) | Amount | | :--------------------------------------------------------------------------------- | :----- | | Accounts receivable | $ 245 | | Inventories | 2,261 | | Identifiable intangible assets | 1,439 | | Total identifiable net assets | 1,966 | | Goodwill | 10,231 | | Net assets acquired | $ 12,197 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance and condition for the three and six months ended March 28, 2025, highlighting a decrease in net sales due to market challenges, an improvement in quarterly operating profit driven by reduced expenses, and a year-to-date operating loss. It also discusses liquidity, cash flows, and recent developments like new tariffs and an acquisition [Overview](index=25&type=section&id=Overview) Johnson Outdoors Inc. is a global manufacturer and marketer of branded seasonal outdoor recreation products, known for innovation and quality across its Fishing, Diving, Paddling, and Camping segments. The Company is controlled by Helen P. Johnson-Leipold and her family - Johnson Outdoors Inc. is a leading global manufacturer and marketer of branded seasonal outdoor recreation products for fishing, diving, paddling, and camping[124](index=124&type=chunk) [Recent Developments](index=26&type=section&id=Recent%20Developments) The U.S. government announced additional tariffs on imported goods, which may increase product costs and negatively impact demand or profitability. The Company is analyzing these impacts and considering mitigation strategies. Additionally, the Company combined its Camping and Watercraft Recreation segments and completed an acquisition in its Diving segment - The U.S. government announced additional tariffs on imported goods, which may increase product/component costs and negatively impact demand or profitability[125](index=125&type=chunk) - The Company combined its 'Camping' and 'Watercraft Recreation' segments and completed a **$12,197 thousand** acquisition of a scuba equipment manufacturer for its Diving segment[127](index=127&type=chunk) [Highlights](index=26&type=section&id=Highlights) Net sales for Q2 fiscal 2025 decreased by 4% due to persistent market challenges and cautious retail environments. Gross margin remained flat at 35%. Operating profit improved by $5,154 thousand, driven by lower direct expenses, reduced promotions, and a decrease in deferred compensation plan expenses - Net sales for the second quarter of fiscal 2025 decreased by **$7,507 thousand (4%)** to **$168,349 thousand**, primarily due to persistent market challenges and cautious retail/trade environments[126](index=126&type=chunk) - Gross margin remained relatively flat at approximately **35%** compared to the prior year quarter[126](index=126&type=chunk) - Operating profit improved by **$5,154 thousand** in the current quarter, driven by lower direct expenses, reduced promotions, and a **$3,370 thousand** decrease in deferred compensation plan expense[126](index=126&type=chunk) [Seasonality](index=26&type=section&id=Seasonality) The Company's business is seasonal, with the second fiscal quarter typically representing the primary selling season for warm-weather outdoor recreation products | Quarter Ended | 2024 Net Sales | 2024 Operating Loss | 2023 Net Sales | 2023 Operating Profit (Loss) | 2022 Net Sales | 2022 Operating Profit | | :------------ | :------------- | :------------------ | :------------- | :--------------------------- | :------------- | :-------------------- | | December | 23 % | — % | 27 % | 47 % | 21 % | 21 % | | March | 30 % | 1 % | 30 % | 97 % | 26 % | 23 % | | June | 29 % | 1 % | 28 % | 149 % | 27 % | 36 % | | September | 18 % | 98 % | 15 % | (193)% | 26 % | 20 % | | Total | 100 % | 100 % | 100 % | 100 % | 100 % | 100 % | [Results of Operations](index=26&type=section&id=Results%20of%20Operations) This section details the Company's financial performance, including net sales, cost of sales, gross profit margin, operating expenses, operating profit/loss, interest, other expense/income, income tax expense, and net income/loss for the three and six months ended March 28, 2025, compared to the prior year periods | (thousands) | Three Months Ended March 28, 2025 | Three Months Ended March 29, 2024 | Six Months Ended March 28, 2025 | Six Months Ended March 29, 2024 | | :------------------------------ | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $ 168,349 | $ 175,856 | $ 275,998 | $ 314,500 | | Operating profit (loss) | $ 4,901 | $ (253) | $ (15,338) | $ (207) | | Net income (loss) | $ 2,304 | $ 2,156 | $ (12,986) | $ 6,111 | [Net Sales - Second Fiscal Quarter](index=27&type=section&id=Net%20Sales%20-%20Second%20Fiscal%20Quarter) Consolidated net sales for Q2 fiscal 2025 decreased by 4% to $168,349 thousand. Fishing sales declined 3% due to challenging market dynamics. Camping & Watercraft Recreation sales decreased 12%, primarily due to the exit of the Eureka! brand, though new Jetboil products showed slight growth. Diving sales fell 7% due to soft market demand globally - Consolidated net sales for the three months ended March 28, 2025, decreased by **$7,507 thousand (4%)** to **$168,349 thousand**, with negligible foreign currency impact[131](index=131&type=chunk) - Fishing net sales decreased by **3%** to **$134,891 thousand** due to challenging consumer and trade dynamics[132](index=132&type=chunk) - Camping & Watercraft Recreation net sales decreased by **12%** to **$17,852 thousand**, mainly due to the exit of the Eureka! brand (prior year sales of $2,950 thousand), partially offset by new Jetboil product success[133](index=133&type=chunk) - Diving net sales declined by **7%** to **$15,820 thousand**, attributed to continuing soft market demand across all geographic regions[134](index=134&type=chunk) [Net Sales - Year-To-Date](index=27&type=section&id=Net%20Sales%20-%20Year-To-Date) Consolidated net sales for the six months ended March 28, 2025, decreased by 12% to $275,998 thousand. Fishing sales dropped 13% due to market challenges and strong prior-year new product sell-in. Camping & Watercraft Recreation sales decreased 12% primarily due to the Eureka! brand exit. Diving sales declined 8% due to continued soft market demand - Consolidated net sales for the six months ended March 28, 2025, decreased by **$38,502 thousand (12%)** to **$275,998 thousand**, with negligible foreign currency impact[135](index=135&type=chunk) - Fishing net sales decreased by **13%** to **$217,363 thousand**, impacted by challenging market conditions and a strong new product sell-in in the prior year[136](index=136&type=chunk) - Camping & Watercraft Recreation net sales decreased by **12%** to **$27,303 thousand**, mainly due to the exit of the Eureka! brand[137](index=137&type=chunk)[139](index=139&type=chunk) - Diving net sales declined by **8%** to **$31,504 thousand**, driven by continued soft market demand across all geographic regions[140](index=140&type=chunk) [Cost of Sales](index=28&type=section&id=Cost%20of%20Sales) Cost of sales decreased for both the three and six-month periods ended March 28, 2025, primarily due to lower sales volumes. For the six-month period, this was partially offset by a shift to higher-cost products - Cost of sales decreased by **$4,942 thousand** for the three months and **$15,266 thousand** for the six months ended March 28, 2025, mainly due to lower sales volumes[141](index=141&type=chunk) [Gross Profit Margin](index=28&type=section&id=Gross%20Profit%20Margin) Gross profit margin remained flat at 35.0% for the three months ended March 28, 2025. However, for the six-month period, it declined to 33.0% from 36.3% in the prior year, primarily due to promotional pricing on end-of-life products and a shift towards lower-margin products - Gross profit as a percentage of net sales was **35.0%** for the three months ended March 28, 2025, remaining flat compared to 34.9% in the prior year[142](index=142&type=chunk) - For the six months ended March 28, 2025, gross profit margin declined to **33.0%** from 36.3% in the prior year, mainly due to promotional pricing on end-of-life products and a shift to lower-margin products[143](index=143&type=chunk) [Operating Expenses](index=28&type=section&id=Operating%20Expenses) Operating expenses decreased by $7,719 thousand for the three months and $8,105 thousand for the six months ended March 28, 2025. This reduction was driven by lower sales volume-driven expenses, decreased promotions, and a significant reduction in deferred compensation plan expenses - Operating expenses decreased by **$7,719 thousand** for the three months and **$8,105 thousand** for the six months ended March 28, 2025[144](index=144&type=chunk)[145](index=145&type=chunk) - Key drivers for the decrease include lower sales volume-driven expenses, reduced promotions, and a **$3,370 thousand** (three months) and **$5,961 thousand** (six months) decrease in deferred compensation plan expense[144](index=144&type=chunk)[145](index=145&type=chunk) [Operating Loss/Profit](index=28&type=section&id=Operating%20Loss/Profit) The Company reported an operating profit of $4,901 thousand for the three months ended March 28, 2025, a significant improvement from an operating loss of $253 thousand in the prior year, primarily due to reduced operating expenses. However, the six-month period saw an increased operating loss of $15,338 thousand, driven by lower sales, promotional pricing, and product mix shifts - Operating profit for the three months ended March 28, 2025, was **$4,901 thousand**, an improvement from an operating loss of $253 thousand in the prior year, driven by reduced operating expenses[146](index=146&type=chunk) - Operating loss for the six months ended March 28, 2025, increased to **$15,338 thousand** from $207 thousand in the prior year, primarily due to lower sales volumes, promotional pricing, and shifts to lower-margin products[147](index=147&type=chunk) [Interest](index=28&type=section&id=Interest) Interest expense slightly increased for both periods, while interest income decreased, reflecting changes in market rates and investment balances | (thousands) | Three Months Ended March 28, 2025 | Three Months Ended March 29, 2024 | Six Months Ended March 28, 2025 | Six Months Ended March 29, 2024 | | :------------ | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Interest expense | $ 68 | $ 40 | $ 115 | $ 78 | | Interest income | $ (625) | $ (857) | $ (1,658) | $ (2,055) | [Other Expense (Income), net](index=28&type=section&id=Other%20Expense%20(Income),%20net) Other expense, net, was $1,300 thousand for the three months and $974 thousand for the six months ended March 28, 2025, a significant decrease from prior year income. This was mainly due to lower net investment gains on deferred compensation plan assets and, for the six-month period, the absence of a prior-year gain on the sale of a building - Other expense, net, was **$1,300 thousand** for the three months ended March 28, 2025, compared to income of $2,448 thousand in the prior year, primarily due to a **$3,370 thousand** decrease in net investment gains on deferred compensation plan assets[151](index=151&type=chunk) - For the six months ended March 28, 2025, other expense, net, was **$974 thousand**, compared to income of $7,141 thousand in the prior year, mainly due to a **$5,961 thousand** decrease in net investment gains and the absence of a **$1,900 thousand** gain on building sale from the prior year[152](index=152&type=chunk) [Income Tax Expense](index=30&type=section&id=Income%20Tax%20Expense) The effective tax rate for the three months ended March 28, 2025, was an expense of 44.6%, while for the six months, it was a benefit of 12.1%. This compares to expenses of 28.4% and 31.4% for the corresponding prior year periods, reflecting changes in estimated annual effective tax rates - The effective tax rate for the three months ended March 28, 2025, was an expense of **44.6%**, compared to 28.4% in the prior year[153](index=153&type=chunk) - For the six months ended March 28, 2025, the effective tax rate was a benefit of **12.1%**, compared to an expense of 31.4% in the prior year[153](index=153&type=chunk) [Net Income/Loss](index=30&type=section&id=Net%20Income/Loss) Net income for the three months ended March 28, 2025, increased slightly to $2,304 thousand ($0.22 diluted EPS). However, the Company reported a net loss of $12,986 thousand ($1.26 diluted EPS) for the six months, compared to a net income of $6,111 thousand ($0.59 diluted EPS) in the prior year | (thousands, except per share data) | Three Months Ended March 28, 2025 | Three Months Ended March 29, 2024 | Six Months Ended March 28, 2025 | Six Months Ended March 29, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Net income (loss) | $ 2,304 | $ 2,156 | $ (12,986) | $ 6,111 | | Diluted EPS (Class A and B) | $ 0.22 | $ 0.21 | $ (1.26) | $ 0.59 | [Liquidity and Financial Condition](index=30&type=section&id=Liquidity%20and%20Financial%20Condition) The Company's cash and short-term investments increased to $93,951 thousand as of March 28, 2025, from $84,270 thousand in the prior year. It maintained a 0% debt to total capitalization ratio with no outstanding debt. Accounts receivable and inventories decreased, reflecting lower sales and inventory reduction efforts - Cash and cash equivalents and short-term investments totaled **$93,951 thousand** as of March 28, 2025, an increase from $84,270 thousand as of March 29, 2024[155](index=155&type=chunk) - The Company maintained a **0% debt to total capitalization ratio** and had no debt outstanding as of March 28, 2025, and March 29, 2024[155](index=155&type=chunk) - Inventories decreased by **$69,144 thousand** to **$180,057 thousand** as of March 28, 2025, reflecting ongoing efforts to reduce inventory balances[156](index=156&type=chunk) | Cash Flows (thousands) | Six months ended March 28, 2025 | Six months ended March 29, 2024 | | :-------------------------------------- | :------------------------------ | :------------------------------ | | Cash (used for) provided by: Operating activities | $ (38,566) | $ (51,764) | | Investing activities | $ (7,749) | $ 7,031 | | Financing activities | $ (6,879) | $ (6,945) | | Decrease in cash and cash equivalents | $ (55,862) | $ (51,498) | [Operating Activities](index=30&type=section&id=Operating%20Activities) Cash used for operations decreased to $38,566 thousand for the six months ended March 28, 2025, from $51,764 thousand in the prior year, primarily due to cash provided by working capital reductions, partially offset by lower income from decreased sales - Cash used for operations decreased to **$38,566 thousand** for the six months ended March 28, 2025, from $51,764 thousand in the prior year, driven by working capital reductions[160](index=160&type=chunk) [Investing Activities](index=31&type=section&id=Investing%20Activities) Cash used for investing activities totaled $7,749 thousand for the six months ended March 28, 2025, a shift from cash provided in the prior year. This was primarily due to $12,197 thousand paid for a business acquisition, partially offset by investment maturities. Capital expenditures also decreased - Cash used for investing activities was **$7,749 thousand** for the six months ended March 28, 2025, compared to cash provided of $7,031 thousand in the prior year[161](index=161&type=chunk) - Current year investing activities include **$12,197 thousand** for a business acquisition, partially offset by **$11,826 thousand** from investment maturities[161](index=161&type=chunk) - Capital expenditures decreased to **$7,378 thousand** from $10,203 thousand in the prior year[161](index=161&type=chunk) [Financing Activities](index=31&type=section&id=Financing%20Activities) Cash used for financing activities remained consistent at approximately $6,879 thousand for the six months ended March 28, 2025, primarily representing dividend payments and treasury stock purchases. The Company had no debt during either period - Cash used for financing activities totaled **$6,879 thousand** for the six months ended March 28, 2025, consistent with $6,945 thousand in the prior year, mainly for dividends and treasury stock purchases[162](index=162&type=chunk) [Contractual Obligations and Off Balance Sheet Arrangements](index=31&type=section&id=Contractual%20Obligations%20and%20Off%20Balance%20Sheet%20Arrangements) The Company has contractual obligations for operating leases and open purchase orders, with no significant changes outside the ordinary course of business. It utilizes letters of credit for workers' compensation insurance, totaling approximately $67 thousand, and has no other off-balance sheet arrangements - The Company has contractual obligations for operating leases and open purchase orders, with no significant changes during the quarter[164](index=164&type=chunk) - Letters of credit outstanding for workers' compensation insurance totaled approximately **$67 thousand** as of March 28, 2025, and March 29, 2024[165](index=165&type=chunk) [Critical Accounting Policies and Estimates](index=31&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There were no significant changes to the Company's critical accounting policies and estimates during the six months ended March 28, 2025, as detailed in its Annual Report on Form 10-K for the fiscal year ending September 27, 2024 - No significant changes occurred in the Company's critical accounting policies and estimates during the six months ended March 28, 2025[167](index=167&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The Company is exposed to market risks related to foreign currency exchange rates, interest rates, commodity prices, and inflation. No significant changes to these market risks occurred during the six months ended March 28, 2025 - The Company is exposed to market risks in foreign currency exchange rates, interest rates, commodity prices, and inflation[168](index=168&type=chunk) - There have been no significant changes to the Company's market risk during the six months ended March 28, 2025[168](index=168&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) The Company's management, including the CEO and CFO, evaluated the effectiveness of its disclosure controls and procedures as of March 28, 2025, concluding they were effective at a reasonable assurance level. There were no material changes to internal control over financial reporting during the last fiscal quarter - The Company's disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of March 28, 2025[171](index=171&type=chunk) - No material changes occurred in the Company's internal control over financial reporting during the last fiscal quarter[172](index=172&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in various legal proceedings in the normal course of business but does not believe any current claim or action will have a material adverse effect on its financial statements - The Company does not believe any current legal claim or action will have a material adverse effect on its financial statements[173](index=173&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Company's Form 10-K for the fiscal year ending September 27, 2024 - No material changes to the risk factors disclosed in the Company's Form 10-K for the fiscal year ending September 27, 2024[174](index=174&type=chunk) [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended March 28, 2025, nor did the Company adopt or terminate any such arrangement - No director, officer, or the Company adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended March 28, 2025[175](index=175&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q report, including articles of incorporation, bylaws, credit agreement amendments, certifications by the CEO and CFO, and XBRL formatted financial statements - The exhibit index includes corporate governance documents, credit facility amendments, CEO/CFO certifications, and XBRL formatted financial statements[182](index=182&type=chunk)