Johnson Outdoors sales down 8.2 percent

RACINE, Wis. — Johnson Outdoors Inc. recently reported first quarter net sales of $69.8 million, an 8.2 percent decline compared to net sales of $76 million for the same quarter last year, according to the company. The company’s first quarter ended Jan. 2.

Marine electronics revenues were 3.9 percent below last year, watercraft sales fell 18 percent below the prior year and diving revenues were down 28 percent, Johnson Outdoors said. However, outdoor gear sales jumped 41 percent ahead of last year.

Johnson Outdoor’s total operating loss was $5.2 million compared to an operating loss of $4.6 million in the same quarter last year — a traditionally slow quarter, the company said. Lower sales and deteriorating economic conditions were partially offset by a 10.5 percent reduction in operating expenses, according to the company.

On Dec. 4, Johnson Outdoors announced comprehensive cost-reduction plans that included a $20 million cost savings target, lower capital spending and significant reduction in peak working capital, according to the company.

After the first quarter, cost savings efforts are progressing in-line with expectations, inventory levels are 18 percent below last year, and capital spending is down 18 percent year-over-year, the company reported.

“Disappointing 2008 holiday retail sales and declines in consumer spending and consumer confidence levels have made retailers even more focused on keeping their inventories down. This has resulted in an adjustment in the timing of customer orders, which we believe will coincide more closely to consumer purchase patterns of our warm-weather seasonal goods. We have taken immediate steps to minimize impact on operations and cash flow, and to ensure our cost structure reflects the rapidly evolving economic climate in which we are doing business,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer.

  • For more of the latest news, click here.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button