Net sales are up for Johnson Outdoors

RACINE, Wis. – Net sales increased 14 percent for Johnson Outdoors Inc., to $122.1 million for the second quarter ended March 30, from $107.4 million for the prior year quarter, the company reported in a release this week.

But net earnings for the company were $1.6 million, or $0.17 per diluted share, for the second quarter of 2007 compared to net earnings of $4.2 million, or $0.46 per diluted share in the prior year quarter, Johnson Outdoors said.

The company said its second quarter sales reflect initial shipments to customers in anticipation of the primary consumer retail selling period for the its seasonal outdoor products. Johnson said gains in its Marine Electronics, Watercraft and Diving business units more than offset the anticipated continued slowing of military sales. Excluding the $2.4 million military sales decline, total company net sales would have increased $17.1 million or 16 percent.

Johnson’s Marine Electronics revenues rose 25 percent above last year and Watercraft sales were 12 percent ahead of last year and were led by strong performances across the entire paddle sport brand portfolio. Key international markets posted double-digit growth year-over-year led by market and distribution expansion in Europe.

Total company operating profit was $4.1 million compared to operating profit of $8.3 million in the prior year quarter. Net income was $1.6 million, or $0.17 per diluted share, compared to net earnings of $4.2 million, or $0.46 per diluted share, in the same quarter last year. Key drivers behind the comparisons were:

“Corporate spending during the quarter was critical to help generate long-term value for shareholders and sustainable, profitable growth,” said Helen Johnson-Leipold, chairman and CEO. “We have been testing new go-to-market strategies to drive sales and enhance brand equity. We have also completed a comprehensive analysis of the outdoor recreational landscape to identify new growth platforms and targeted acquisition opportunities.

“All in all, we feel very good about the topline growth, the success of our investments in innovation, the consumer demand for our products, and we are working to address the supply chain challenges which led to operational inefficiencies in Diving and Marine Electronics. We continue to be very excited for the future of Johnson Outdoors.”

Year-to-date results

Net sales in the first six months of fiscal 2007 were $193.8 million versus $179.9 million in the same six-month period last year, an increase of 8 percent.

Total company operating profit was $1.4 million during the first six months compared to $7.5 million during the prior year-to-date period. Net loss for the first six months of the year was $0.5 million, or ($0.06) per diluted share, versus net income of $3.1 million, or $0.34 per diluted share, in the first six months of the prior year. Consistent with the second quarter, primary drivers behind the year-to-date comparison were:

  • The significant drop in military sales versus the prior year six-month period.
  • Reduced margins in Marine Electronics and Diving.
  • Significant corporate investments in current and future growth initiatives.
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