Johnson Outdoors (US:JOUT)2024-02-02 18:29Financial Data and Key Metrics Changes - Sales in Q1 2024 declined 22% to $138.6 million compared to $178.3 million in Q1 2023 [8] - Net income for the quarter was $4 million, or $0.38 per diluted share, down from $5.9 million, or $0.57 per diluted share in the previous year [8] - Gross margin improved to 38.1%, up 2.9 points from the prior year quarter due to reductions in material and freight costs [14] - Operating expenses decreased by 8% or $4.5 million compared to the prior year quarter [14] - Inventory balance as of December was $267.3 million, an increase of about $16 million from the previous year [16] Business Line Data and Key Metrics Changes - Fishing business faced headwinds, but there is solid trade support for Minn Kota's QUEST series [9] - Diving business sales declined slightly, reflecting a normalization of markets post-pandemic [10] - Camping and Watercraft Recreation sales decreased due to a decline in market demand from elevated pandemic levels [10] - Old Town sportsman line in watercraft recreation outperformed competitors in a depressed marketplace [10] Market Data and Key Metrics Changes - The outdoor recreation marketplace is expected to remain challenged with uncertainty in demand and tight inventory management by retailers [11] - Consumer behavior during the season will be critical for performance [9] Company Strategy and Development Direction - The company is investing in consumer marketing programs to support new product launches and stimulate demand [8] - A cost savings program is being executed alongside diligent expense management [9] - Continued investment in innovation is emphasized to enhance consumer outdoor experiences [9] Management Comments on Operating Environment and Future Outlook - Management noted that high inventory levels at retail and slower consumer demand significantly impacted results [8] - The company remains confident in its ability to deliver long-term value and consistently pay dividends to shareholders [15] - There are active plans to reduce inventory levels throughout the year [16] Other Important Information - The company has no debt and maintains a strong cash position to invest in business opportunities [15] Q&A Session Summary - No questions were raised during the Q&A session [17]