Johnson Outdoors reports fiscal Q2 results
Johnson Outdoors Inc. reported lower sales and net income during the company’s 2020 second fiscal quarter ending March 27. Year-to-date revenue and net income compared favorably to the prior year fiscal six-month period.
Following a temporary suspension of operations at some of the company’s locations, on April 22, 2020, the Company resumed production and shipments in its North American operations in compliance with government-ordered procedures and public health safety guidelines for COVID-19.
During the temporary suspension, all facilities were deep-cleaned and sanitized, and strict operating procedures and protocols, consistent with CDC guidelines, were put in place, along with good personal hygiene directives. Employees with positions conducive to working from home have been and will continue to do so.
“During this unsettling time, we are taking steps to protect the health and safety of our people and ensure the future for Johnson Outdoors,” said Helen Johnson-Leipold, chairman and CEO. “Government mandates in response to COVID-19 have overlapped with our primary selling season, and the third quarter is expected to be significantly impacted as a result. However, as stay-at-home orders are lifted, Johnson Outdoors will be there ready to help people have a great outdoor experience.”
SECOND QUARTER RESULTS
Net sales decreased 8% to $163.1 million in the current fiscal second quarter compared with $177.7 million in the previous year quarter.
Government-mandated “stay-at-home” orders resulted in temporary suspensions across company operations around the world during the quarter and were a key contributing factor to the year-over-year unfavorable comparison in total net sales. While each unit experienced a different degree of impact from COVID-19, other factors affecting unit results were:
Fishing revenue declined 3%, camping sales decreased 7%, diving revenue dropped 29% and watercraft recreation sales fell 38% due largely to COVID-19 impacts on production and demand.
Total company operating profit in the fiscal second quarter was $31.8 million compared to $27.8 million in the prior year fiscal second quarter. Gross margin improved to 46.1% from 44.5%, due primarily to stronger pricing and improved mix in the current
YEAR-TO-DATE RESULTS
Fiscal 2020 year-to-date net sales were $291.1 million, a 3% increase over last year’s first fiscal six-month period, driven by strong first quarter sales. Total company operating profit increased 14% to $38.6 million compared with the prior fiscal year-to-date period. Gross margin improved to 44.2% in the first fiscal six-months versus 43.8% in the prior fiscal year-to-date period.
