Core Insights - Johnson Outdoors Inc. (JOUT) reported mixed results for Q1 fiscal 2025, with a wider quarterly loss than expected and a decline in year-over-year sales despite surpassing net sales consensus [1][4] Financial Performance - The company incurred a quarterly loss per share of $1.49, exceeding the Zacks Consensus Estimate of a loss of $1.30, compared to earnings of $0.38 in the prior-year quarter [4] - Net sales reached $107.6 million, surpassing the consensus mark of $105 million by 2.8%, but reflecting a 22% decline year over year [4] Segment Analysis - **Fishing Segment**: Net sales fell 25% year over year to $82.5 million, resulting in an operating loss of $8.3 million compared to an operating profit of $11.5 million in the previous year [5] - **Camping & Watercraft Recreation**: This segment's net sales decreased to $9.5 million from $10.7 million, with an operating loss of $0.6 million, an improvement from a loss of $1.7 million in the prior year [6] - **Diving Segment**: Net sales declined by 10% to $15.7 million, with an operating loss of $0.9 million compared to a loss of $0.6 million in the previous year [7] Operating Highlights - Gross profit decreased to $32.2 million from $52.9 million year over year, with gross margin contracting by 820 basis points to 29.9% due to lower sales volumes and unfavorable product mix [8] - Operating expenses were $52.4 million, slightly down from $52.8 million reported a year ago, leading to an operating loss of $20.2 million compared to a profit of $0.05 million in the prior year [9][10] Balance Sheet Overview - As of December 27, 2024, cash and cash equivalents were $95.3 million, down from $145.5 million at the end of fiscal 2024, while inventories decreased to $201.6 million from $209.8 million [11]

Financial Performance - Net sales for the first quarter of fiscal 2025 were $107,649, a decrease of $30,995, or 22%, compared to $138,644 for the same period in the prior year[129]. - The Fishing segment reported net sales of $82,472, down $28,020, or 25%, from $110,492 in the prior year quarter[137]. - The Diving segment's net sales were $15,684, a decline of $1,794, or 10%, compared to $17,478 in the same quarter last year[140]. - The Company reported a net loss of $15,290, or $1.49 per diluted share, compared to net income of $3,955, or $0.38 per diluted share, in the prior year[151]. - Operating loss for the quarter was $20,239, compared to an operating profit of $46 in the first quarter of the prior fiscal year[144]. Profitability and Margins - Gross profit margin for the first quarter was 29.9%, down from 38.1% in the prior year, primarily due to unfavorable overhead absorption and changes in product mix[142]. Cash Flow and Liquidity - Cash and cash equivalents totaled $101,617 as of December 27, 2024, down from $109,555 as of December 29, 2023[152]. - Cash used in operating activities was $(36,909) for the quarter, compared to $(33,687) in the same period last year[154]. - Cash used for operations totaled $36,909 for the three months ended December 27, 2024, compared to $33,687 in the prior year, reflecting a decrease in income due to lower sales volumes[155]. - Cash used for investing activities was $6,500 for the three months ended December 27, 2024, compared to cash provided of $4,685 in the prior year, primarily due to $12,180 paid to acquire a business[156]. - Cash used for financing activities totaled $3,450 for the three months ended December 27, 2024, compared to $3,588 in the prior year, primarily for dividend payments and treasury stock purchases[157]. - The company held approximately $58,043 in cash, cash equivalents, and short-term investments as of December 27, 2024[158]. - The company has no debt during the three-month periods ended December 27, 2024, and December 29, 2023[157]. Accounts and Obligations - Accounts receivable decreased by $14,746 to $68,297, consistent with lower sales volumes year over year[153]. - The company has contractual obligations and commitments for future payments under operating leases and open purchase orders, with no significant changes during the quarter[159]. - Letters of credit outstanding were approximately $67 as of December 27, 2024, consistent with the prior year[160]. Investments and Acquisitions - The Company acquired a scuba equipment manufacturer for $12,180 during the first quarter, expected to enhance product offerings and operational efficiencies[130]. - Capital expenditures were $4,084 in the three months ended December 27, 2024, down from $5,004 in the prior year, which included investments in expanding fishing facilities[156]. Risk and Accounting Policies - There were no significant changes to the company's critical accounting policies and estimates during the three months ended December 27, 2024[162]. - The company remains exposed to market risks including foreign currency exchange rates, interest rates, commodity prices, and inflation, with no significant changes noted[163].

Financial Data and Key Metrics Changes - The first quarter sales results reflect a challenging comparison due to the load-in of the Minn Kota QUEST trolling motor line in the previous first quarter [14] - Gross margin was negatively impacted by increased promotional pricing, unfavorable overhead absorption, and unfavorable product mix [14] - Operating expenses decreased by $400,000 compared to the prior year due to lower sales volumes and decreased expenses on the company's deferred compensation plan [15] - Inventory balance as of December was $201.6 million, down about $66 million from last year's first quarter [16] - The company remains debt-free, which is a strong competitive advantage [16] Business Line Data and Key Metrics Changes - The camping business is performing better relative to the watercraft business, with a slight positive trend in camping [31] - The paddling market remains challenged, impacting the watercraft segment [31] Market Data and Key Metrics Changes - The retail environment is cautious, with mixed inventory levels among partners, some having healthy positions while others have excess inventory [28] - There is cautious ordering in the market, making it difficult to predict future conditions [29] Company Strategy and Development Direction - The company is focused on innovation, operational efficiencies, and e-commerce to drive future growth [6][12] - A recent acquisition in the diving segment is expected to enhance manufacturing efficiency and innovation [9][25] - The company is investing in a digital commerce center to enhance e-commerce capabilities [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing marketplace challenges and competitive pressures, indicating that these conditions are not expected to improve soon [5][6] - There is optimism about new product reception, although the market remains unpredictable [29] Other Important Information - The company is actively working on cost savings initiatives, including product design improvements and factory efficiency [33] - Management is developing mitigation strategies in response to new tariffs, leveraging their U.S.-based manufacturing [11][37] Q&A Session Summary Question: Revenue performance and pricing versus unit volumes - Revenue came in above estimates, but both unit volumes and pricing were affected by discounting [20][21] Question: Details on the diving acquisition - The acquisition was completed smoothly, with a purchase price of around $14 million, enhancing operational efficiency [22][25] Question: Early indications for incoming orders and retail inventory levels - Inventory levels are mixed, with cautious ordering due to market unpredictability [27][28] Question: Performance of camping and watercraft segments - The camping business is showing slight growth, while the watercraft segment remains challenged [30][31] Question: Impact of cost savings initiatives - Cost savings initiatives have positively impacted the first quarter, although masked by discounting [32][34] Question: Exposure to tariffs and mitigation strategies - The company has exposure to tariffs from imports and is working on mitigation strategies leveraging its U.S. operations [36][37]

Core Viewpoint - Johnson Outdoor reported a quarterly loss of $1.49 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.30, and a significant decline from earnings of $0.38 per share a year ago, indicating ongoing financial struggles for the company [1][2] Financial Performance - The company posted revenues of $107.65 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 2.82%, but down from $138.64 million in the same quarter last year [2] - Over the last four quarters, Johnson Outdoor has consistently failed to surpass consensus EPS estimates, with a notable earnings surprise of -14.62% this quarter and a previous quarter surprise of -241.84% [1][2] Stock Performance - Johnson Outdoor shares have declined approximately 1.8% since the beginning of the year, contrasting with the S&P 500's gain of 2.7%, indicating underperformance in the market [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $178.2 million, while for the current fiscal year, the estimate is -$0.25 on revenues of $592.06 million [7] - The trend of estimate revisions for Johnson Outdoor is currently unfavorable, resulting in a Zacks Rank 4 (Sell), suggesting that the stock is expected to underperform the market in the near future [6] Industry Context - The Leisure and Recreation Products industry, to which Johnson Outdoor belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, which may negatively impact the stock's performance [8]

Financial Performance - Total Company net sales in the first fiscal quarter declined 22% to $107.6 million compared to $138.6 million in the prior year first fiscal quarter [4]. - Total Company operating loss was $(20.2) million for the first fiscal quarter, a significant decline from an operating profit of $0.05 million in the prior year [5]. - Net loss was $(15.3) million, or $(1.49) per diluted share, compared to net income of $4.0 million, or $0.38 per diluted share in the previous year's first quarter [6]. - Gross margin decreased to 29.9% from 38.1% in the prior year quarter, primarily due to unfavorable overhead absorption and increased promotional pricing [5]. Revenue Breakdown - Fishing revenue decreased 25% to $82.5 million, while Camping & Watercraft Recreation sales were down 12% to $9.5 million [9]. - Diving sales decreased 10% to $15.7 million, driven by softening market demand across all geographic regions [9]. Cash and Investments - Cash and short-term investments totaled $101.6 million as of December 27, 2024, down from $109.6 million in the prior year [7]. Operating Expenses and Tax - Operating expenses were $52.4 million, a slight decrease of $0.4 million from the prior year period [5]. - The effective tax rate was 19.2%, down from 33.0% in the prior year first quarter [6]. Future Plans - The Company plans to expand cost savings initiatives and improve inventory management to mitigate profit losses [8].

Johnson Outdoors Inc. (JOUT) is scheduled to report first-quarter fiscal 2025 results on Feb. 3, before market open. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 241.8%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Trend in JOUT’s Estimate RevisionThe Zacks Consensus Estimate for the to be reported quarter’s loss per share have widened to $1.30 from a loss of $1.27 in the past 30 days. In the year ago quarter, the company reported adj ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Johnson Outdoor (JOUT) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February ...

Company Announcement - Johnson Outdoors Inc will release its Fiscal 2025 first quarter financial results on February 3 2025 before market open [1] - A conference call and audio webcast will be held at 11:00 a m Eastern Time on the same day to discuss the financial results and provide a company update [1] - A live listen-only webcast of the conference call can be accessed on Johnson Outdoors' home page [2] - A replay of the webcast will be available on the Investor section of the company's website for 30 days [2] Company Overview - Johnson Outdoors is a leading global innovator of outdoor recreation equipment and technologies [3] - The company designs manufactures and markets 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] Contact Information - Patricia Penman can be contacted at 262-631-6600 for further inquiries [5]

Annual Shareholders Meeting - Johnson Outdoors Inc will hold its Annual Shareholders meeting on February 27 2025 at 8:00 a m Central Standard Time [1] - The meeting will be a completely virtual meeting accessible to shareholders of record as of December 19 2024 [1] - Shareholders can attend vote and submit questions during the live webcast by visiting www virtualshareholdermeeting com JOUT2025 and entering their 16-digit control number [1] - A live listen-only webcast of the Annual Meeting can also be accessed at Johnson Outdoors home page with a replay available for 30 days [2] Proxy Statement and Annual Report - Information pertinent to the items to be voted upon during the Annual Meeting will be available in the Proxy Statement mailed to shareholders of record on or about January 10 2025 [3] - The Proxy Statement will be filed with the Securities and Exchange Commission on the same date [3] - The Company's Annual Report and Proxy Statement will also be available on the Company's website at www johnsonoutdoors com under Investors [3] Company Overview - Johnson Outdoors Inc is a leading global innovator of outdoor recreation equipment and technologies [4] - The company designs manufactures and markets a portfolio of consumer-preferred brands across four categories: Watercraft Recreation Fishing Diving and Camping [4] - Iconic brands include Old Town canoes and kayaks Carlisle paddles Minn Kota trolling motors shallow water anchors and battery chargers Cannon downriggers Humminbird marine electronics and charts SCUBAPRO dive equipment and Jetboil outdoor cooking systems [4]

Core Insights - The article emphasizes the importance of consulting qualified investment advisors before making any trading decisions, highlighting that the opinions expressed are not investment recommendations [2][3] Group 1 - The author has no stock, option, or similar derivative positions in any of the companies mentioned, nor plans to initiate such positions within the next 72 hours [1] - The article is intended for informational purposes only and does not constitute an investment research report [2] - The analysis presented is based on incomplete information and is limited in scope and accuracy [2][3] Group 2 - The views and opinions expressed may not reflect those of Seeking Alpha as a whole, indicating a diversity of perspectives among analysts [3] - The article does not provide guarantees regarding the accuracy or completeness of the information and data presented [2][3] - Past performance is noted as no guarantee of future results, underscoring the inherent uncertainties in investment [3]