Johnson Outdoors (JOUT) - 2025 Q3 - Quarterly Results

Management Commentary 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] - 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] Financial Performance 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) 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] - Operating expenses decreased by $1.7 million to $60.6 million, mainly due to lower promotions and professional services costs[4] Year-to-Date Results (YTD FY2025) 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] Business Segment Performance 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] - 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] - Diving revenue increased due to stronger market conditions and a 2% positive impact from favorable currency translation[8] Financial Position and Other Information 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][9] - In June 2025, the Board of Directors approved a quarterly cash dividend, which was paid in July 2025[9] Corporate Updates 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] - 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]