Johnson Outdoors posts record second quarter results
Johnson Outdoors Inc. today reported double-digit increases in sales and earnings driving record-high results during the company’s 2018 second fiscal quarter and first fiscal six months ending March 30, 2018.
“We continue to benefit from our dedicated focus on consumer-driven innovation that delivers bigger, better marketplace success, most notably in fishing, our largest and most profitable business,” said Helen Johnson-Leipold, chairman and chief executive officer.
Excitement for the company’s 2018 product line-up remains strong, giving Johnson Outdoors a great start to the year, Johnson-Leipold added.
Sales in the second fiscal quarter reflect shipments to customers in anticipation of the primary retail-selling period for the outdoor recreation industry’s warm-weather products.
Net sales jumped 11 percent to $165.8 million in the current fiscal second quarter compared to $149.8 million in the prior year quarter, driven by continued strong positive momentum in the company’s Fishing and Diving groups.
Minn Kota and Humminbird brands contributed to a 19 percent increase in fishing revenue. Diving showed mixed results across global markets resulting in a 7 percent uptick in revenue, the company reported.
Watercraft Recreation sales were negatively impacted by a weakened market and retail consolidations, and primary drivers of a decline in Camping revenues were the divesture of the Silva brand and decreases in military tent revenue.
Total company operating profit in the fiscal second quarter was $26 million, a 27 percent increase over operating profit of $20.5 million in the previous fiscal year quarter. Gross margin improved to 44.8 percent compared to 43.3 percent in the prior year second quarter due to favorable mix and improved operating efficiency.
Ongoing investment against the company’s three key strategic plan priorities – richer consumer insights, enhanced innovation processes and digital sophistication – are essential to ensure continued progress toward our goal of delivering accelerated sustained profitable growth, said Johnson-Leipold.
“The balance sheet remains strong and our growing cash position enables us to continue investment against strategic priorities and opportunities to expand our business and growth potential. We remain confident in our ability and plans to create long-term value and consistently pay dividends to shareholders,” added David W. Johnson, Vice President and Chief Financial Officer.
Only Johnson Outdoors can leverage the unique combination of groundbreaking technologies in our powerhouse Minn Kota® and Humminbird® brands to maximize the growth potential of our Fishing business. Innovative core life-support products have also been key drivers behind SCUBAPRO® performance this year. On the flip side, the negative impact on distribution channels from tough market conditions in Watercraft Recreation and Camping underscores the critical importance and urgency of our digital transformation,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
The company will host a conference call and audio web cast at 11 a.m. Eastern Time. A live listen-only web cast of the conference call may be accessed at Johnson Outdoors’ home page. A replay of the call will be available for 30 days on the Internet.
