RACINE, Wis., Feb. 02, 2024 (GLOBE NEWSWIRE) -- Johnson Outdoors Inc. (NASDAQ:JOUT), a leading global innovator of outdoor recreation equipment and technology, today announced lower sales and decreased earnings results for the Company's first fiscal quarter ending December 29, 2023. "We're facing a tough marketplace with high inventory levels at retail and lower consumer demand resulting in soft first quarter sales. We are taking steps to outperform the challenging marketplace and improve our financial resu ...

PART I FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 FY2024 and Q1 FY2023, along with detailed accounting notes [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales for Q1 FY2024 were $138.6 million, with net income of $4.0 million, both significantly lower than the prior year Consolidated Statements of Operations (Unaudited) | (In thousands, except per share data) | Three Months Ended Dec 29, 2023 | Three Months Ended Dec 30, 2022 | | :--- | :--- | :--- | | **Net sales** | $138,644 | $178,337 | | Gross profit | $52,854 | $62,779 | | Operating profit | $46 | $5,472 | | **Net income** | **$3,955** | **$5,879** | | Net income per common share - Diluted (Class A) | $0.38 | $0.57 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets were $692.7 million, liabilities $188.8 million, and shareholders' equity $503.9 million as of December 29, 2023, reflecting changes in inventories Key Balance Sheet Items (Unaudited) | (In thousands) | Dec 29, 2023 | Sep 29, 2023 | Dec 30, 2022 | | :--- | :--- | :--- | :--- | | **Total current assets** | $476,224 | $458,656 | $486,524 | | Inventories | $267,321 | $261,474 | $251,525 | | **Total assets** | **$692,683** | **$681,606** | **$689,096** | | Total current liabilities | $104,067 | $104,006 | $117,438 | | **Total liabilities** | **$188,813** | **$181,869** | **$194,875** | | **Total shareholders' equity** | **$503,870** | **$499,737** | **$494,221** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash used for operating activities increased to $33.7 million, investing activities provided $4.7 million, resulting in a $31.4 million decrease in cash and cash equivalents Cash Flow Summary (Unaudited) | (In thousands) | Three Months Ended Dec 29, 2023 | Three Months Ended Dec 30, 2022 | | :--- | :--- | :--- | | Net cash used for operating activities | $(33,687) | $(17,570) | | Net cash provided by (used for) investing activities | $4,685 | $(6,649) | | Net cash used for financing activities | $(3,588) | $(3,570) | | **Decrease in cash and cash equivalents** | **$(31,393)** | **$(26,381)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed accounting policy explanations for financial statement line items, including notes on debt status and the exit of the Eureka! brand - The company had **no debt outstanding** as of December 29, 2023, September 29, 2023, or December 30, 2022[72](index=72&type=chunk) - The company has a **$75 million revolving credit facility**, which was amended to extend its expiration to July 15, 2026[73](index=73&type=chunk)[74](index=74&type=chunk) - During the fourth quarter of fiscal 2023, the company approved plans to fully exit the **Eureka! brand** of the Camping segment by liquidating remaining inventory and winding down operations[111](index=111&type=chunk) - The Fishing segment sold a building during the first quarter of fiscal 2024, resulting in a gain of approximately **$1.9 million**[112](index=112&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2024 results, highlighting a **22% decrease in net sales** to $138.6 million due to softening demand, which significantly impacted operating profit despite improved gross margin - Net sales for Q1 FY2024 decreased by **22% to $138.6 million** from $178.3 million in Q1 FY2023, primarily due to softening consumer demand for outdoor recreation products[127](index=127&type=chunk)[133](index=133&type=chunk) - Gross profit margin improved to **38.1%** from 35.2% year-over-year, driven by decreased costs of certain materials and lower inbound freight[141](index=141&type=chunk) - Operating profit fell sharply to **$46 thousand** from $5.47 million in the prior-year quarter, as cost improvements were insufficient to offset the decline in sales volume[129](index=129&type=chunk)[143](index=143&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) First-quarter results show sales declines across most segments: Fishing down **20%**, Camping **49%**, Watercraft Recreation **50%**, and Diving **8%**, despite an improved gross margin Net Sales by Segment (in thousands) | Segment | Q1 FY2024 | Q1 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Fishing | $110,492 | $138,041 | -20.0% | | Camping | $5,913 | $11,613 | -49.1% | | Watercraft Recreation | $4,813 | $9,658 | -50.2% | | Diving | $17,478 | $19,059 | -8.3% | | **Total** | **$138,644** | **$178,337** | **-22.2%** | - The Fishing segment's sales decline was due to customers tightly managing inventory levels in a softened consumer market, contrasting with the prior year's inventory replenishment[136](index=136&type=chunk) - The Camping segment's sales decrease included a **$2.6 million** impact from the previously reported sale of the Military and Commercial Tents product lines[137](index=137&type=chunk) - Other income increased by **$2.8 million**, driven by a **$1.9 million** gain on the sale of a building and a **$1.3 million** increase in net investment gains on deferred compensation plan assets[145](index=145&type=chunk) [Liquidity and Financial Condition](index=27&type=section&id=Liquidity%20and%20Financial%20Condition) The company maintained a debt-free balance sheet with **$109.6 million** in cash and short-term investments, with cash used for operations increasing to **$33.7 million** due to working capital changes - The company had **no debt** and a debt-to-total capitalization ratio of **0%** as of December 29, 2023[150](index=150&type=chunk) - Inventories increased by **$15.8 million** year-over-year to **$267.3 million** due to lower customer replenishment and softening consumer demand, primarily in the Fishing segment[151](index=151&type=chunk) - Cash used for operations increased to **$33.7 million** for the quarter, compared to $17.6 million in the prior year, primarily due to decreased sales volumes and other working capital changes[153](index=153&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No significant changes occurred in the company's market risk exposures, including foreign currency, interest rates, commodity prices, or inflation, during Q1 FY2024 - There have been **no significant changes** to the company's market risk related to foreign currency exchange, interest rates, commodity prices, or inflation in the first quarter of fiscal 2024[163](index=163&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the last fiscal quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** at a level of reasonable assurance as of December 29, 2023[164](index=164&type=chunk) - No material changes were made to the company's internal control over financial reporting during the last fiscal quarter[166](index=166&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings but does not anticipate any material adverse effect on its financial condition or results - The company does not believe any pending litigation will have a **material adverse effect** on its financial condition, results of operations, liquidity, or cash flows[167](index=167&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's most recent Annual Report on Form 10-K - There have been **no material changes** to the risk factors disclosed in the company's most recent Form 10-K[168](index=168&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial data in XBRL format - Exhibits filed with this report include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and financial statements in Inline XBRL format[173](index=173&type=chunk)

Johnson Outdoors Inc. (JOUT) is scheduled to report first-quarter fiscal 2024 results on Feb 2, before market open.In the last reported quarter, the company’s earnings and net sales missed the Zacks Consensus Estimate by 387.5% and 20.4%, respectively. Also, the metrics declined on a year-over-year basis.The Trend in Estimate RevisionFor the quarter to be reported, the Zacks Consensus Estimate for earnings per share remained unchanged at 15 cents in the past seven days. The estimated figure indicates a 73.7 ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Johnson Outdoor (JOUT) reports results for the quarter ended December 2023. 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 ...

RACINE, Wis., Jan. 22, 2024 (GLOBE NEWSWIRE) -- JOHNSON OUTDOORS INC. (NASDAQ:JOUT), a leading global innovator of outdoor recreation equipment and technology, will release financial results for the Fiscal 2024 first quarter on Friday, February 2, 2024, before market open that day. The Company will host a conference call and audio webcast shortly afterwards at 11:00 a.m. Eastern Time to discuss the financial results and provide a Company update. A live listen-only webcast of the conference call may be acces ...

RACINE, Wis., Jan. 22, 2024 (GLOBE NEWSWIRE) -- JOHNSON OUTDOORS INC. (Nasdaq: JOUT), a leading global innovator of outdoor recreation equipment and technology, will release financial results for the Fiscal 2024 first quarter on Friday, February 2, 2024, before market open that day. The Company will host a conference call and audio webcast shortly afterwards at 11:00 a.m. Eastern Time to discuss the financial results and provide a Company update. A live listen-only webcast of the conference call may be acce ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 29, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 0-16255 JOHNSON OUTDOORS INC. (Exact name of registrant as specified in its charter) Wisconsin 39-1536083 (State or other jurisdictio ...

$743.4 Johnson Outdoors is led by Helen Johnson-Leipold, Sam's daughter and the fifth generation of the Johnson family. $66.3 Sam Johnson, Founder STERD INVESTOR PRESENTATION OHNSON SNAPSHOT EMPLOYEES FACILITIES WORLDWIDE MILLION NET SALES (FY2022) Johnson Outdoors was founded more than 50 years ago by Sam Johnson, a spirited adventurer and passionate outdoorsman. Part of the Johnson Family Enterprises: ‒ JOHNSON FINANCIAL GROUP JOUT:NASDAQ | 3 ➣ Became Chairman and CEO in 1999 WHO WE ARE Our passion for th ...

Johnson Outdoors Inc. (NASDAQ:JOUT) Q3 2023 Earnings Conference Call August 3, 2023 11:00 AM ET Company Participants Pat Penman - Vice President of Marketing Services & Global Communication Helen Johnson-Leipold - Chairman and Chief Executive Officer David Johnson - Vice President and Chief Financial Officer Conference Call Participants Anthony Lebiedzinski - Sidoti Anna Glaessgen - B. Riley Operator Hello, everyone, and welcome to the Johnson Outdoors Third Quarter 2023 Earnings Conference Call. Today's ca ...

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This part presents the company's unaudited financial statements and management's analysis of financial condition and results of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section contains the unaudited condensed consolidated financial statements and accompanying notes for the reporting period [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (Three Months Ended) | (thousands, except per share data) | June 30, 2023 | July 1, 2022 | | :--------------------------------- | :------------ | :----------- | | Net sales | $187,047 | $203,819 | | Gross profit | $77,587 | $73,509 | | Operating profit | $17,443 | $23,799 | | Profit before income taxes | $19,822 | $19,244 | | Net income | $14,801 | $14,082 | | Net income per common share - Diluted: Class A | $1.44 | $1.38 | | Net income per common share - Diluted: Class B | $1.44 | $1.38 | Condensed Consolidated Statements of Operations (Nine Months Ended) | (thousands, except per share data) | June 30, 2023 | July 1, 2022 | | :--------------------------------- | :------------ | :----------- | | Net sales | $567,499 | $546,966 | | Gross profit | $215,701 | $202,725 | | Operating profit | $34,305 | $52,988 | | Profit before income taxes | $47,936 | $47,043 | | Net income | $35,541 | $34,838 | | Net income per common share - Diluted: Class A | $3.47 | $3.42 | | Net income per common share - Diluted: Class B | $3.47 | $3.42 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income (Three Months Ended) | (thousands) | June 30, 2023 | July 1, 2022 | | :---------------------------- | :------------ | :----------- | | Net income | $14,801 | $14,082 | | Foreign currency translation | $1,018 | $(2,770) | | Unrealized gain (loss) on available-for-sale securities, net of tax | $(126) | — | | Change in pension plans, net of tax | $9 | $(7) | | Total other comprehensive income (loss) | $901 | $(2,777) | | Total comprehensive income | $15,702 | $11,305 | Condensed Consolidated Statements of Comprehensive Income (Nine Months Ended) | (thousands) | June 30, 2023 | July 1, 2022 | | :---------------------------- | :------------ | :----------- | | Net income | $35,541 | $34,838 | | Foreign currency translation | $4,462 | $(3,025) | | Unrealized gain (loss) on available-for-sale securities, net of tax | $(126) | — | | Change in pension plans, net of tax | $25 | $25 | | Total other comprehensive income (loss) | $4,361 | $(3,000) | | Total comprehensive income | $39,902 | $31,838 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (Key Figures) | (thousands) | June 30, 2023 | September 30, 2022 | July 1, 2022 | | :------------------------------ | :------------ | :----------------- | :----------- | | Cash and cash equivalents | $122,596 | $129,803 | $117,567 | | Short term investments | $26,651 | — | — | | Accounts receivable, net | $94,644 | $91,919 | $103,244 | | Inventories | $235,069 | $248,649 | $250,956 | | Total current assets | $485,305 | $480,316 | $481,214 | | Total assets | $705,484 | $679,931 | $675,842 | | Total current liabilities | $106,670 | $114,713 | $117,028 | | Total liabilities | $185,040 | $191,917 | $191,576 | | Total shareholders' equity | $520,444 | $488,014 | $484,266 | [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Changes in Shareholders' Equity (Nine Months Ended June 30, 2023) | (thousands except for shares) | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | | :---------------------------- | :----------- | :----------------------------- | :---------------- | :-------------------------------------------- | :------------- | | Balance at September 30, 2022 | $512 | $87,351 | $402,821 | $620 | $(3,290) | | Net income | — | — | $35,541 | — | — | | Dividends declared | — | — | $(9,435) | — | — | | Award of non-vested shares | $2 | $(1,557) | — | — | $2,123 | | Stock-based compensation | — | $2,142 | — | — | — | | Currency translation adjustment | — | — | — | $4,462 | — | | Change in pension plans, net of tax | — | — | — | $25 | — | | Purchase of treasury stock at cost | — | — | — | — | $(444) | | Non-vested stock forfeitures | — | — | — | — | — | | Balance at June 30, 2023 | $514 | $87,932 | $428,927 | $4,981 | $(1,910) | Changes in Shareholders' Equity (Nine Months Ended July 1, 2022) | (thousands except for shares) | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | | :---------------------------- | :----------- | :----------------------------- | :---------------- | :-------------------------------------------- | :------------- | | Balance at October 1, 2021 | $509 | $82,899 | $370,501 | $7,386 | $(2,790) | | Net income | — | — | $34,838 | — | — | | Dividends declared | — | — | $(9,049) | — | — | | Award of non-vested shares | $2 | $(2) | — | — | — | | Stock-based compensation | — | $3,146 | — | — | — | | Currency translation adjustment | — | — | — | $(3,025) | — | | Change in pension plans, net of tax | — | — | — | $25 | — | | Purchase of treasury stock at cost | — | — | — | — | $(509) | | Non-vested stock forfeitures | — | $120 | — | — | $(150) | | Balance at July 1, 2022 | $512 | $86,369 | $396,290 | $4,386 | $(3,290) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Nine Months Ended) | (thousands) | June 30, 2023 | July 1, 2022 | | :-------------------------------- | :------------ | :----------- | | Cash provided by (used for) operating activities | $45,210 | $(86,413) | | Cash used for investing activities | $(45,133) | $(25,150) | | Cash used for financing activities | $(9,591) | $(9,214) | | Effect of foreign currency rate changes on cash | $2,307 | $(2,104) | | Decrease in cash and cash equivalents | $(7,207) | $(122,881) | | Cash and cash equivalents - End of period | $122,596 | $117,567 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Basis of Presentation](index=10&type=section&id=1%20BASIS%20OF%20PRESENTATION) - The condensed consolidated financial statements are unaudited and include normal recurring adjustments and should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2022[27](index=27&type=chunk) - Results for the three and nine months ended June 30, 2023, are not necessarily indicative of the full 2023 fiscal year due to seasonal variations and uncertain economic conditions[28](index=28&type=chunk) [2. Accounts Receivable](index=10&type=section&id=2%20ACCOUNTS%20RECEIVABLE) - Accounts receivable are reported net of allowances for doubtful accounts, which is determined based on specific collection concerns and historical bad debt experience[30](index=30&type=chunk) Allowances for Doubtful Accounts | Date | Allowance for Doubtful Accounts (thousands) | | :-------------- | :------------------------------------------ | | June 30, 2023 | $902 | | September 30, 2022 | $1,037 | | July 1, 2022 | $1,208 | [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 holders entitled to **110% of Class B dividends**[31](index=31&type=chunk)[32](index=32&type=chunk) - Diluted EPS assumes conversion of Class B to Class A and includes dilutive stock options and restricted stock units[36](index=36&type=chunk) Dividends Declared Per Common Share | Dividends declared per common share | June 30, 2023 (3 Months) | July 1, 2022 (3 Months) | June 30, 2023 (9 Months) | July 1, 2022 (9 Months) | | :---------------------------------- | :----------------------- | :---------------------- | :----------------------- | :---------------------- | | Class A | $0.31 | $0.30 | $0.93 | $0.90 | | Class B | $0.28 | $0.27 | $0.85 | $0.82 | [4. Stock-Based Compensation and Stock Ownership Plans](index=11&type=section&id=4%20STOCK-BASED%20COMPENSATION%20AND%20STOCK%20OWNERSHIP%20PLANS) - The Company has stock ownership plans for key executives and non-employee directors, allowing for issuance of stock options, restricted stock, restricted stock units (RSUs), or stock appreciation rights[40](index=40&type=chunk) - As of June 30, 2023, **468,066 shares of Class A common stock** were available for future grants under the 2023 Non-Employee Director Stock Ownership Plan and the 2020 Long-Term Incentive Plan[41](index=41&type=chunk) Non-vested Stock Activity (Nine Months Ended June 30, 2023) | Activity | Shares | Weighted Average Grant Price | | :---------------------------- | :------- | :--------------------------- | | Non-vested stock at Sep 30, 2022 | 58,136 | $73.37 | | Non-vested stock grants | 28,528 | $59.25 | | Restricted stock vested | (14,790) | $76.07 | | Forfeitures | (10,632) | $71.41 | | Non-vested stock at Jun 30, 2023 | 61,242 | $66.48 | Stock Compensation Expense (Non-vested Stock & RSUs) | (thousands) | 3 Months Ended Jun 30, 2023 | 3 Months Ended Jul 1, 2022 | 9 Months Ended Jun 30, 2023 | 9 Months Ended Jul 1, 2022 | | :---------------------------- | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | | Non-vested stock expense | $172 | $335 | $1,117 | $896 | | RSU expense | $28 | $636 | $953 | $1,961 | [5. Leases](index=13&type=section&id=5%20LEASES) - The Company leases facilities and equipment under long-term operating leases, with approximately **200 leases outstanding** as of June 30, 2023, ranging from less than one year to 16 years[57](index=57&type=chunk)[58](index=58&type=chunk) Total Lease Cost | (thousands) | Three months ended June 30, 2023 | Three months ended July 1, 2022 | Nine months ended June 30, 2023 | Nine months ended July 1, 2022 | | :-------------- | :------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | | Total lease cost | $3,195 | $2,797 | $9,346 | $8,062 | Operating Lease Information (Nine Months Ended) | Operating leases: | June 30, 2023 | July 1, 2022 | | :-------------------------------- | :------------ | :----------- | | Operating lease ROU assets | $53,104 | $50,284 | | Total operating lease liabilities | $54,676 | $51,459 | | Weighted average remaining lease term (in years) | 11.93 | 12.10 | | Weighted average discount rate | 3.18 % | 3.11 % | [6. Income Taxes](index=14&type=section&id=6%20INCOME%20TAXES) - The decrease in the effective tax rate for the three months ended June 30, 2023, was due to a favorable impact from a change in estimate after filing prior year tax returns[64](index=64&type=chunk) - The Company has valuation allowances for significant tax jurisdictions including Indonesia and Switzerland, where no tax expense or benefit can be recognized[65](index=65&type=chunk) Income Tax Expense and Effective Tax Rate | (thousands, except tax rate data) | June 30, 2023 (3 Months) | July 1, 2022 (3 Months) | June 30, 2023 (9 Months) | July 1, 2022 (9 Months) | | :-------------------------------- | :----------------------- | :---------------------- | :----------------------- | :---------------------- | | Profit before income taxes | $19,822 | $19,244 | $47,936 | $47,043 | | Income tax expense | $5,021 | $5,162 | $12,395 | $12,205 | | Effective income tax rate | 25.3 % | 26.8 % | 25.9 % | 25.9 % | [7. Inventories](index=15&type=section&id=7%20INVENTORIES) - Inventory is valued at the lower of cost (FIFO method) or net realizable value[67](index=67&type=chunk) Inventories by Category (thousands) | Category | June 30, 2023 | September 30, 2022 | July 1, 2022 | | :-------------- | :------------ | :----------------- | :----------- | | Raw materials | $107,899 | $166,443 | $175,261 | | Work in process | — | $230 | $258 | | Finished goods | $127,170 | $81,976 | $75,437 | | Total | $235,069 | $248,649 | $250,956 | [8. Goodwill](index=15&type=section&id=8%20GOODWILL) - Goodwill is evaluated annually or more frequently for impairment using the income approach (discounted cash flow methodology), which is considered a **Level 3 fair value determination**[69](index=69&type=chunk) Changes in Goodwill (Nine Months Ended) | (thousands) | June 30, 2023 | July 1, 2022 | | :-------------------------------- | :------------ | :----------- | | Balance at beginning of period | $11,160 | $11,221 | | Amount attributable to movements in foreign currency rates | $26 | $(12) | | Balance at end of period | $11,186 | $11,209 | [9. Warranties](index=16&type=section&id=9%20WARRANTIES) Warranty Activity (Nine Months Ended) | (thousands) | June 30, 2023 | July 1, 2022 | | :------------------------------------ | :------------ | :----------- | | Balance at beginning of period | $9,639 | $14,073 | | Expense accruals for warranties issued during the period | $8,991 | $3,007 | | Less current period warranty claims paid | $6,381 | $6,217 | | Balance at end of period | $12,249 | $10,863 | [10. Contingencies](index=16&type=section&id=10%20CONTINGENCIES) - The Company is involved in various legal actions in the normal course of business, but management believes the final outcome will not have a material adverse effect on its financial condition or operations[72](index=72&type=chunk) [11. Indebtedness](index=16&type=section&id=11%20INDEBTEDNESS) - The Company had **no debt outstanding** as of June 30, 2023, September 30, 2022, or July 1, 2022[73](index=73&type=chunk) - The Company has an unsecured **$75 million Revolving Credit Facility** with a $50 million accordion feature, expiring July 15, 2026, with interest based on LIBOR (transitioning to SOFR)[74](index=74&type=chunk)[75](index=75&type=chunk) - Interest rates on the Revolver were approximately **6.2% at June 30, 2023**, and **2.8% at July 1, 2022**[75](index=75&type=chunk) [12. Derivative Instruments and Hedging Activities](index=17&type=section&id=12%20DERIVATIVE%20INSTRUMENTS%20AND%20HEDGING%20ACTIVITIES) - The Company is exposed to foreign exchange risk, with approximately **13% of revenues** for the nine months ended June 30, 2023, denominated in non-U.S. dollar currencies[80](index=80&type=chunk) - The Company may use foreign currency forward contracts to mitigate risk but held no such contracts as of June 30, 2023, and July 1, 2022[81](index=81&type=chunk) [13. Fair Value Measurements](index=17&type=section&id=13%20FAIR%20VALUE%20MEASUREMENTS) - Fair value is defined as the exit price in an orderly transaction, categorized into a three-level hierarchy based on input observability[82](index=82&type=chunk)[84](index=84&type=chunk) - Rabbi trust assets, classified as trading securities, are measured at fair value (**Level 1**) and are used to fund deferred compensation plan liabilities[85](index=85&type=chunk)[86](index=86&type=chunk) Rabbi Trust Assets Measured at Fair Value (Level 1) | Assets: | June 30, 2023 (thousands) | September 30, 2022 (thousands) | July 1, 2022 (thousands) | | :---------------- | :------------------------ | :----------------------------- | :----------------------- | | Rabbi trust assets | $25,304 | $21,436 | $24,238 | [14. Cash, Cash Equivalents, and Marketable Securities](index=19&type=section&id=14%20CASH,%20CASH%20EQUIVALENTS,%20AND%20MARKETABLE%20SECURITIES) - The Company considers short-term investments and securities with original maturities of three months or less as cash equivalents, stated at cost approximating market value[87](index=87&type=chunk) - During Q3 fiscal 2023, the Company invested in marketable securities, classified as **available-for-sale** and reported at estimated fair value[88](index=88&type=chunk) Marketable Securities Measured at Fair Value (June 30, 2023) | Category | Amortized Cost (thousands) | Fair Value (thousands) | Gross unrealized gains (thousands) | Gross unrealized losses (thousands) | | :---------------------------- | :------------------------- | :--------------------- | :--------------------------------- | :---------------------------------- | | Fixed rate US Government Bonds | $29,614 | $29,526 | — | $87 | | Fixed rate Canadian Government Bonds | $11,251 | $11,170 | — | $82 | | Total | $40,865 | $40,696 | — | $169 | [15. New Accounting Pronouncements](index=20&type=section&id=15%20NEW%20ACCOUNTING%20PRONOUNCEMENTS) - The Company plans to adopt ASU 2020-04, Reference Rate Reform (Topic 848), in the fourth fiscal quarter of 2023, with **no significant impact expected** on its financial statements[95](index=95&type=chunk) [16. Revenues](index=20&type=section&id=16%20REVENUES) - Revenue is recognized when control of goods is transferred to the customer, typically at the point of shipment, and is adjusted for variable consideration like incentives or rebates[96](index=96&type=chunk) - The Company accrues estimated costs of returns, allowances, and discounts as a reduction to sales based on historical experience[98](index=98&type=chunk) - Shipping and handling fees billed to customers are included in 'Net Sales,' while costs are recognized within 'Marketing and selling expenses'[99](index=99&type=chunk) [17. Segments of Business](index=21&type=section&id=17%20SEGMENTS%20OF%20BUSINESS) - The Company operates through four business segments: **Fishing, Camping, Watercraft Recreation, and Diving**[102](index=102&type=chunk) - During the second fiscal quarter of 2023, the Company sold its Military and Commercial Tent product lines from the Camping segment for **$14,990 thousand**, resulting in a net gain on sale of approximately **$6,560 thousand**[106](index=106&type=chunk) Net Sales by Business Segment (Three Months Ended) | Segment | June 30, 2023 (thousands) | July 1, 2022 (thousands) | | :------------------ | :------------------------ | :----------------------- | | Fishing | $137,161 | $136,026 | | Camping | $11,621 | $23,468 | | Watercraft Recreation | $15,664 | $21,821 | | Diving | $22,216 | $22,197 | | Total | $187,047 | $203,819 | Operating Profit (Loss) by Business Segment (Three Months Ended) | Segment | June 30, 2023 (thousands) | July 1, 2022 (thousands) | | :------------------ | :------------------------ | :----------------------- | | Fishing | $18,665 | $16,553 | | Camping | $2,039 | $4,998 | | Watercraft Recreation | $1,483 | $2,893 | | Diving | $2,733 | $2,412 | | Other / Corporate | $(7,477) | $(3,057) | | Total | $17,443 | $23,799 | [18. Accumulated Other Comprehensive Income (Loss)](index=22&type=section&id=18%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) Changes in Accumulated Other Comprehensive Income (AOCI) (Nine Months Ended June 30, 2023) | Component | Balance at Sep 30, 2022 | Other comprehensive loss before reclassifications | Amounts reclassified from AOCI | Tax effects | Balance at Jun 30, 2023 | | :-------------------------------------- | :---------------------- | :------------------------------------------------ | :----------------------------- | :---------- | :---------------------- | | Foreign Currency Translation Adjustment | $791 | $4,346 | — | — | $5,127 | | Unamortized Loss on Defined Benefit Pension Plans | $(171) | — | $34 | $(9) | $(146) | | Accumulated Other Comprehensive Income (Loss) | $620 | $4,346 | $34 | $(9) | $4,981 | Reclassifications out of AOCI (Nine Months Ended) | Component | June 30, 2023 (thousands) | July 1, 2022 (thousands) | Statement of Operations Presentation | | :-------------------------------------- | :------------------------ | :----------------------- | :----------------------------------- | | Unamortized loss on defined benefit pension plans: Amortization of loss | $34 | $34 | Other income and expense | | Tax effects | $(9) | $(9) | Income tax expense | | Total reclassifications for the period | $25 | $25 | | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&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, condition, and key operational drivers [Forward Looking Statements](index=24&type=section&id=Forward%20Looking%20Statements) - The report contains forward-looking statements subject to risks and uncertainties, including economic conditions, consumer confidence, and supply chain disruptions[114](index=114&type=chunk)[115](index=115&type=chunk) - Factors that could affect actual results include success in implementing strategic plans, litigation costs, working capital management, and raw material fluctuations[115](index=115&type=chunk)[120](index=120&type=chunk) [Trademarks](index=26&type=section&id=Trademarks) - The Company lists its registered trademarks, including Minn Kota®, Cannon®, Humminbird®, Eureka!®, Jetboil®, Old Town®, Ocean Kayak®, Carlisle®, and SCUBAPRO®[121](index=121&type=chunk) [Overview](index=26&type=section&id=Overview) - Johnson Outdoors Inc. is a global manufacturer and marketer of branded seasonal outdoor recreation products for fishing, diving, paddling, and camping[122](index=122&type=chunk) - Post-pandemic, participation in some outdoor recreation segments has declined, leading to lower demand and higher inventory levels[123](index=123&type=chunk)[124](index=124&type=chunk) - The Company's business is seasonal, with the **third fiscal quarter** traditionally being the primary selling season for warm-weather outdoor recreation products[128](index=128&type=chunk) Key Financial Highlights (Three Months Ended June 30, 2023 vs. Prior Year) | Metric | Change (YoY) | | :----------------- | :----------- | | Net sales | -8% | | Gross margin | +5.4 points | | Gross profit | +$4,078 | | Operating expenses | +21% | | Operating profit | -$6,356 | | Profit before income taxes | Slight increase | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) - **Gross profit margin improved to 41.5%** for the three months ended June 30, 2023 (vs. 36.1% prior year) and to **38.0%** for the nine months (vs. 37.1% prior year), driven by price increases and reduced costs[144](index=144&type=chunk)[145](index=145&type=chunk) - Operating expenses increased primarily due to higher warranty expense, marketing spend, increased compensation costs, professional services, and deferred compensation expense[146](index=146&type=chunk)[150](index=150&type=chunk) - Other income, net, saw a significant increase, primarily due to a **$6,560 thousand gain** on the sale of Military and Commercial Tents product lines and net investment gains[155](index=155&type=chunk)[156](index=156&type=chunk) Consolidated Net Sales and Operating Profit (Three Months Ended) | Metric / Period | June 30, 2023 (thousands) | July 1, 2022 (thousands) | YoY Change (thousands) | YoY Change (%) | | :---------------- | :------------------------ | :----------------------- | :--------------------- | :------------- | | Net Sales | $187,047 | $203,819 | $(16,772) | -8% | | Operating Profit | $17,443 | $23,799 | $(6,356) | -26.7% | Consolidated Net Sales and Operating Profit (Nine Months Ended) | Metric / Period | June 30, 2023 (thousands) | July 1, 2022 (thousands) | YoY Change (thousands) | YoY Change (%) | | :---------------- | :------------------------ | :----------------------- | :--------------------- | :------------- | | Net Sales | $567,499 | $546,966 | $20,533 | +4% | | Operating Profit | $34,305 | $52,988 | $(18,683) | -35.3% | Net Sales by Segment (YoY Change - Three Months Ended June 30, 2023) | Segment | Net Sales (Jun 30, 2023) | Net Sales (Jul 1, 2022) | Change (thousands) | Change (%) | | :------------------ | :----------------------- | :---------------------- | :----------------- | :--------- | | Fishing | $137,460 | $136,565 | $895 | +1% | | Camping | $11,658 | $23,479 | $(11,821) | -50% | | Watercraft Recreation | $15,726 | $21,872 | $(6,146) | -28% | | Diving | $22,227 | $22,201 | $26 | +0.1% | Net Sales by Segment (YoY Change - Nine Months Ended June 30, 2023) | Segment | Net Sales (Jun 30, 2023) | Net Sales (Jul 1, 2022) | Change (thousands) | Change (%) | | :------------------ | :----------------------- | :---------------------- | :----------------- | :--------- | | Fishing | $430,842 | $374,244 | $56,598 | +15% | | Camping | $36,996 | $56,780 | $(19,784) | -35% | | Watercraft Recreation | $38,274 | $59,481 | $(21,207) | -36% | | Diving | $61,594 | $56,886 | $4,708 | +8% | Net Income and Diluted EPS (Three and Nine Months Ended) | Metric / Period | June 30, 2023 (3 Months) | July 1, 2022 (3 Months) | June 30, 2023 (9 Months) | July 1, 2022 (9 Months) | | :---------------- | :----------------------- | :---------------------- | :----------------------- | :---------------------- | | Net Income | $14,801 | $14,082 | $35,541 | $34,838 | | Diluted EPS (Class A & B) | $1.44 | $1.38 | $3.47 | $3.42 | [Liquidity and Financial Condition](index=31&type=section&id=Liquidity%20and%20Financial%20Condition) - Cash, cash equivalents, and short-term investments totaled **$149,247 thousand** as of June 30, 2023, with **no debt outstanding**[161](index=161&type=chunk) - Accounts receivable decreased by **$8,600 thousand**, and inventories decreased by **$15,887 thousand**, consistent with lower sales volumes[162](index=162&type=chunk) - Cash provided by operations significantly increased due to lower inventory purchases compared to the prior year[164](index=164&type=chunk) - Investing activities included **$40,696 thousand** in new investments and **$14,990 thousand** in proceeds from the sale of the Military and Commercial Tents product lines[165](index=165&type=chunk) - Financing activities primarily consisted of dividend payments and treasury stock purchases[166](index=166&type=chunk) Cash Flow Summary (Nine Months Ended) | (thousands) | June 30, 2023 | July 1, 2022 | | :-------------------------------- | :------------ | :----------- | | Cash provided by (used for) operating activities | $45,210 | $(86,413) | | Cash used for investing activities | $(45,133) | $(25,150) | | Cash used for financing activities | $(9,591) | $(9,214) | [Contractual Obligations and Off Balance Sheet Arrangements](index=32&type=section&id=Contractual%20Obligations%20and%20Off%20Balance%20Sheet%20Arrangements) - There have been no changes outside the ordinary course of business in contractual obligations during the quarter[168](index=168&type=chunk) - The Company utilizes letters of credit, primarily for workers' compensation insurance, totaling approximately **$78,000** as of June 30, 2023[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 30, 2023[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) This section addresses the company's exposure to market risks, noting no material changes since the last annual report - The Company is exposed to market risks related to 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 profile in the nine months ended June 30, 2023, compared to its Form 10-K[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and reports no material changes in internal control over financial reporting - Management concluded that disclosure controls and procedures were **effective** at a reasonable assurance level as of June 30, 2023[173](index=173&type=chunk) - **No changes** in internal control over financial reporting occurred during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[174](index=174&type=chunk) [PART II OTHER INFORMATION](index=32&type=section&id=PART%20II%20OTHER%20INFORMATION) This part provides supplementary information regarding legal proceedings, risk factors, and other corporate matters [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company anticipates no material adverse effects from the ultimate disposition of various legal proceedings arising in the normal course of business - The Company is involved in various legal proceedings in the normal course of business, including commercial, product liability, and intellectual property matters[175](index=175&type=chunk) - Management does not believe the final outcome of any pending litigation will have a **material adverse effect** on the Company's financial condition or operations[175](index=175&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - **No material changes** to the risk factors disclosed in the Company's Form 10-K filed on December 9, 2022, have occurred[177](index=177&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) This section reports that no directors or officers adopted or terminated specified trading arrangements during the quarter - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three-month period ended June 30, 2023[178](index=178&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q report, including certifications and XBRL financial data - The Exhibit Index includes the Company's Articles of Incorporation, Bylaws, CEO and CFO Certifications, and XBRL formatted financial statements[183](index=183&type=chunk)