RACINE, Wis., Dec. 08, 2023 (GLOBE NEWSWIRE) — Johnson Outdoors Inc. (Nasdaq:JOUT), a leading global innovator of outdoor recreation equipment and technology, today announced lower revenue and earnings for the fiscal year ending September 29, 2023. Fiscal 2023 sales fell 11 percent compared to the previous year, while operating profit decreased $54.6 million, or 82 percent, and net income fell $25.0 million, or 56 percent, over the prior fiscal year.

“The end of the elevated pandemic-driven demand of the past few years, combined with higher inventory levels at retail, resulted in lower sales and profits for our 2023 fiscal year. Our fiscal fourth quarter was particularly impacted by significantly slower demand,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “Heading into fiscal 2024, we are working hard to outperform the challenging marketplace and improving our profitability profile. We’re excited about new innovation announced this year, including Minn Kota®’s new line of motors and Old Town®’s award-winning power-assisted pedal drive boat. We will continue to invest in innovation to keep our brands strong, and to maximize opportunities to enhance the long-term growth and profitability of all our businesses.”


  • Announced broad line of new, innovative products in Fishing
  • Received ICAST award for cutting-edge technology in Watercraft Recreation
  • Maintained debt-free balance sheet and strong cash position
  • Increased quarterly dividend to shareholders

Total Company revenue fell 11 percent to $663.8 million versus fiscal 2022 revenue of $743.4 million. Key factors in the year-over-year comparison were:

  • Fishing revenue decreased 6 percent as demand moderated to pre-pandemic levels
  • Diving sales increased 8 percent, comparing favorably to the prior fiscal year, due to strong performance in a recovering market
  • Camping decreased $25.0 million due primarily to a significant decline in demand as well as the sale of the Military and Commercial tents product lines in the fiscal second quarter
  • Watercraft Recreation sales decreased $27.2 million, reflecting significant reductions in the overall market demand

Total Company operating profit was $11.7 million in fiscal 2023, which compared unfavorably to operating profit of $66.3 million in the prior fiscal year due to the lower sales volumes and a $27.3 million increase in operating expenses. Deferred compensation expense increased $9.1 million as a result of marking plan assets to market and was entirely offset in Other Income. Additionally, higher warranty expense, investments in research and development costs, and higher marketing and professional services costs further drove the operating expense increase versus fiscal 2022.

Profit before income taxes was $25.8 million in fiscal 2023, compared to $58.9 million in fiscal 2022. Other Income improved by $17.8 million over the prior year due primarily to improved gains on deferred compensation plan assets (offset in operating expenses as noted above) and a $6.6 million gain on the sale of Military and Commercial Tents. Net income for the fiscal year fell to $19.5 million, or $1.90 per diluted share, a 56 percent decline versus $44.5 million, or $4.37 per diluted share, in the last fiscal year. The effective tax rate was 24.4 percent compared to the previous fiscal year’s rate of 24.4 percent.

Total Company net sales in the fiscal fourth quarter were $96.3 million, a $100.1 million decrease from the prior fiscal year fourth quarter’s sales of $196.4 million. Operating loss of $22.6 million in the current year fourth quarter declined from operating profit of $13.3 million in the prior year fourth quarter. Gross profit declined from the prior year quarter due to lower sales, increased inventory reserves, and unfavorable overhead absorption. Operating expenses decreased $4.3 million due primarily to a reduction in sales volume-driven expenses and lower incentive compensation expense. Loss before income taxes was $22.1 million in the current year quarter, compared to profit before income taxes of $11.8 million in the prior year fourth quarter. Net loss for the fourth quarter was $16.0 million compared to net income of $9.7 million in fiscal 2022.

The Company reported cash and investments of $152.6 million as of September 29, 2023, a $22.8 million increase from the prior year, with no debt on its balance sheet. Depreciation and amortization were $16.3 million compared to $14.2 million in fiscal 2022. Capital spending totaled $22.7 million in fiscal 2023 compared with $31.7 million in fiscal 2022. In September 2023, the Company’s Board of Directors approved a 3 percent increase in the quarterly cash dividend to shareholders of record as of October 13, 2023, which was payable on October 27, 2023.

“Heading into fiscal year 2024, we’re focused on carefully managing higher-than-normal inventories and improving profitability with a defined cost savings program in place and prudent expense management,” said David W. Johnson, Chief Financial Officer. “The balance sheet remains debt-free and our healthy cash position enables us to continue investing in strategic opportunities to strengthen the business and consistently pay dividends to shareholders.”

The Company will host a conference call and audio web cast at 11:00 a.m. Eastern Time on Friday, December 8, 2023. A live listen-only web cast of the conference call may be accessed here. A replay of the call will be available for 30 days on the Internet.

About Johnson Outdoors Inc.

JOHNSON OUTDOORS is a leading global innovator of outdoor recreation equipment and technologies that inspire more people to experience the awe of the great outdoors. The company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft Recreation, Fishing, Diving and Camping. Johnson Outdoors’ iconic brands include: Old Town® canoes and kayaks; Ocean Kayak; Carlisle® paddles; Minn Kota® fishing motors, batteries and anchors; Cannon® downriggers; Humminbird® marine electronics and charts; SCUBAPRO® dive equipment; Jetboil® outdoor cooking systems; and, Eureka!®camping and hiking equipment.

Visit Johnson Outdoors at http://www.johnsonoutdoors.com

Safe Harbor Statement

Certain matters discussed in this press release are “forward-looking statements,” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995.   Statements other than statements of historical fact are considered forward-looking statements. These statements may be identified by the use of forward-looking words or phrases such as “anticipate,” “believe,” “confident,” “could,” “expect,” “intend,” “may,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results or outcomes to differ materially from those currently anticipated.   Factors that could affect actual results or outcomes include the matters described under the caption “Risk Factors” in Item 1A of the Company’s Form 10-K filed with the Securities and Exchange Commission on December 8, 2023, and the following: changes in economic conditions, consumer confidence levels and discretionary spending patterns in key markets; uncertainties stemming from political instability (and its impact on the economies in jurisdictions where the Company has operations), changes in U.S. trade policies, tariffs, and the reaction of other countries to such changes; the global outbreaks of disease, such as the COVID-19 pandemic, which has affected, and may continue to affect, market and economic conditions, along with wide-ranging impacts on employees, customers and various aspects of our operations; the Company’s success in implementing its strategic plan, including its targeted sales growth platforms, innovation focus and its increasing digital presence; litigation costs related to actions of and disputes with third parties, including competitors; the Company’s continued success in its working capital management and cost-structure reductions; the Company’s success in integrating strategic acquisitions; the risk of future write-downs of goodwill or other long-lived assets; the ability of the Company’s customers to meet payment obligations; the impact of actions of the Company’s competitors with respect to product development or enhancement or the introduction of new products into the Company’s markets; movements in foreign currencies, interest rates or commodity costs; fluctuations in the prices of raw materials or the availability of raw materials or components used by the Company; any disruptions in the Company’s supply chain as a result of material fluctuations in the Company’s order volumes and requirements for raw materials and other components, or the demand for those same raw materials and components by third parties, necessary to manufacture and produce the Company’s products including related to shortages in procuring necessary raw materials and components to manufacture and produce such products; the success of the Company’s suppliers and customers and the impact of any consolidation in the industries of the Company’s suppliers and customers; the ability of the Company to deploy its capital successfully; unanticipated outcomes related to outsourcing certain manufacturing processes; unanticipated outcomes related to litigation matters; and adverse weather conditions. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.   The forward-looking statements included herein are only made as of the date of this filing. The Company assumes no obligation, and disclaims any obligation, to update such forward-looking statements to reflect subsequent events or circumstances.

(thousands, except per share amounts)        
Operating results September 29, 2023 September 30, 2022 September 29, 2023 September 30, 2022
Net sales $ 96,345   $ 196,389   $ 663,844   $ 743,355  
Cost of sales   67,959     127,782     419,757     472,023  
Gross profit   28,386     68,607     244,087     271,332  
Operating expenses   50,951     55,285     232,347     205,022  
Operating (loss) profit:   (22,565 )   13,322     11,740     66,310  
Interest income, net   (1,699 )   (432 )   (4,391 )   (654 )
Other (income) expense, net   1,246     1,909     (9,693 )   8,076  
(Loss) profit before income taxes   (22,112 )   11,845     25,824     58,888  
Income tax (benefit) expense   (6,105 )   2,192     6,290     14,397  
Net (loss) income $ (16,007 ) $ 9,653   $ 19,534   $ 44,491  
Weighted average common shares outstanding – Dilutive   10,216     10,166     10,195     10,151  
Net (loss) income per common share – Diluted $ (1.56 ) $ 0.95   $ 1.90   $ 4.37  
Segment Results        
Net sales:        
Fishing $ 62,085   $ 152,338   $ 492,927   $ 526,582  
Camping   8,326     13,575     45,322     70,355  
Watercraft Recreation   2,494     8,459     40,768     67,940  
Diving   23,475     21,988     85,069     78,874  
Other / Eliminations   (35 )   29     (242 )   (396 )
Total $ 96,345   $ 196,389   $ 663,844   $ 743,355  
Operating profit (loss):        
Fishing $ (10,033 ) $ 21,267   $ 41,325   $ 65,433  
Camping   (4,406 )   548     457     13,415  
Watercraft Recreation   (3,414 )   (1,415 )   (1,777 )   6,173  
Diving   1,902     631     6,092     4,705  
Other / Eliminations   (6,614 )   (7,709 )   (34,357 )   (23,416 )
Total $ (22,565 ) $ 13,322   $ 11,740   $ 66,310  
Balance Sheet Information (End of Period)        
Cash, cash equivalents, and short term investments     $ 138,618   $ 129,803  
Accounts receivable, net       43,159     91,919  
Inventories, net       261,474     248,649  
Total current assets       458,656     480,316  
Long term investments       13,943      
Total assets       681,606     679,931  
Total current liabilities       104,006     114,713  
Total liabilities       181,869     191,917  
Shareholders’ equity       499,737     488,014  
Johnson Outdoors Inc.  
David Johnson Patricia Penman
VP & Chief Financial Officer VP – Marketing Services & Global Communications
262-631-6600 262-631-6600

Primary Logo

Originally published at https://www.einpresswire.com/article/673781479/johnson-outdoors-reports-results-for-fiscal-year-2023

Next articleNordstrom Rack to Open New Location in Franklin, Tennessee