Johnson Outdoors (JOUT) - 2024 Q4 - Annual Report

Fishing Segment - The company's Fishing segment generates the majority of its sales from North America, with key brands including Minn Kota, Humminbird, and Cannon, sold through large outdoor specialty retailers, distributors, and direct-to-consumer channels[16] - The company's Fishing segment includes Minn Kota, Humminbird, and Cannon brands, with sales primarily in North America through retailers like Bass Pro Shops and Cabela's[16] - The company's Fishing segment faces competition from brands like Lowrance, Garmin, and Power-Pole, with a focus on technological innovation and product quality[34] - The company's main competitors in the Fishing segment include Lowrance, Garmin, and Power-Pole, with competition focused on technological innovation and product quality[34] Camping Segment - The company plans to fully exit the Eureka! brand by the end of 2024, focusing future Camping segment resources on the Jetboil product line[18] - The company's Camping segment focuses on the Jetboil product line after exiting the Eureka! brand, with plans to wind down operations by the end of 2024[18] - The company's Camping segment competes with MSR in the portable outdoor cooking systems market, emphasizing product size, weight, and reliability[36] Watercraft Recreation Segment - The company's Watercraft Recreation segment markets canoes, kayaks, and accessories under the Old Town brand, primarily sold in the U.S. and Canada through specialty dealers and direct-to-consumer channels[23] - The company's Watercraft Recreation segment includes Old Town canoes and kayaks, sold through specialty dealers and online channels[23] - The company's Watercraft Recreation segment competes with brands like Hobie and Pelican International in the kayak and canoe market, focusing on design, performance, and price[37] - In the Watercraft Recreation segment, the company competes with Hobie, Pelican International, Wenonah Canoe, Jackson Kayak, and Legacy Paddlesports, focusing on product design and performance[37] Diving Segment - The company's Diving segment markets SCUBAPRO diving equipment to premium recreational and technical diving markets, sold through specialty dive stores and direct-to-consumer channels[26] - The company's Diving segment markets SCUBAPRO products to recreational and technical divers, sold through specialty dive stores and online[26] - The company's Diving segment competes with Aqua Lung and Suunto in the life support product category, emphasizing innovation, performance, and safety[38] - The company's Diving segment faces competition from Aqua Lung, Suunto, Atomic Aquatics, Oceanic, Cressi, and Mares, with a focus on product innovation and safety[38] Employee and Labor Information - The company has approximately 1,200 full-time employees, with 950 in the U.S. and 250 outside the U.S., and 4% represented by a collective bargaining agreement[40] - The company has approximately 1,200 regular, full-time employees, with 950 in the United States and 250 outside the United States, and 4% represented by a collective bargaining agreement[40] Research and Development - The company commits significant resources to research and development across all business segments, with activities conducted in multiple global locations[30] - The company's R&D activities are conducted across multiple locations globally, including Mankato, Little Falls, Alpharetta, Toronto, Eufaula, Zurich, Casarza Ligure, Old Town, and Racine[30][31] - The company capitalizes software development and bathymetry data collection costs once technological feasibility is established, amortizing them over the expected useful life[32] Seasonality and Sales Performance - The company's products are seasonal, with higher sales in the quarters ending March and June, and lower sales in the quarters ending September and December[46] - In fiscal 2024, net sales percentages by quarter were: December 23%, March 30%, June 29%, September 18%[48] - Operating profit percentages by quarter for fiscal 2024 were: December 0%, March 1%, June 1%, September 98%[48] - The company's seasonality returned to pre-COVID levels in fiscal 2024 and 2023, after being disrupted by pandemic-related demand in 2022[46] - The company mitigates seasonality by encouraging customers to purchase and take delivery of products more evenly throughout the year[46] - The company's net sales for Q4 2024 were 23% of total annual sales, with operating loss at 0%, while Q4 2023 net sales were 27% with operating profit at 47%[48] - The company's products are seasonal, with higher sales in Q1 and Q2 (March and June) and lower sales in Q3 and Q4 (September and December)[46] Manufacturing and Supply Chain - The company operates manufacturing facilities in the US, Italy, and Indonesia, with some products manufactured by third-party sources in Asia[15][20][25] - The company mitigates supply chain risks through safety stock, forecast-based supply contracts, and just-in-time inventory strategies[45] Environmental Compliance - The company complies with environmental laws and regulations, with no material adverse effects expected on capital expenditures or earnings due to environmental compliance[49]