Johnson Outdoors reports sales surge

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Outdoor recreation equipment and technology company Johnson Outdoors announced total company net sales in the second quarter surged 26% year over year to $206.2 million, versus $163.1 million in the prior year fiscal quarter.

“Through the second fiscal quarter, our results reflect the strong levels of demand fueled by the pandemic and the increased interest in outdoor activities. I am proud of our team for their exceptional work in delivering these results during this unprecedented time. Our primary focus continues to be keeping pace with high demand,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “

Key contributing factors to the results were:

  • Continued high demand across all product lines in Minn Kota and Humminbird propelled a 19.5% increase in fishing revenue.
  • Watercraft recreation and camping sales rose significantly due to strong demand across all product categories.
  • Ongoing pandemic-related global travel restrictions and lockdowns in various countries led to the unfavorable year-over-year revenue comparison in diving.

Total company operating profit during the quarter was $36.0 million versus $31.8 million in the prior year second quarter. Gross margin dipped slightly to 45% due primarily to increases in tariffs and freight costs year over year. Operating expenses were $57.2 million, with the increase driven by higher sales volume-driven expenses, as well as higher variable and deferred compensation expense between quarters. Net income increased to $27.8 million, or $2.74 per diluted share.

Total Company operating profit during the quarter was $36.0 million versus $31.8 million in the prior year second quarter. Gross margin dipped slightly to 45.2 percent due primarily to increases in tariffs and freight costs year over year. Operating expenses were $57.2 million, with the increase driven by higher sales volume-driven expenses, as well as higher variable and deferred compensation expense between quarters. Favorable market conditions on the Company's deferred compensation plan assets resulted in higher deferred compensation expense in the current year quarter as compared to the prior year quarter, which was entirely offset by a gain in Other Income. Net income increased to $27.8 million, or $2.74 per diluted share.

YEAR-TO-DATE RESULTS
Fiscal 2021 year-to-date net sales were $371.8 million, a 28 percent increase over last year’s first fiscal six-month period. Total Company operating profit rose 54.4 percent to $59.6 million compared to $38.6 million in prior fiscal year-to-date period. Gross margin improved to 45.3 percent in the first fiscal six months versus 44.2 percent in the prior fiscal year-to-date period. Operating expenses were $108.7 million due to volume-related costs and the items noted above for the quarter. Net income during the first fiscal six months was $47.7 million, or $4.70 per diluted share, versus $26.8 million, or $2.66 per diluted share, in the prior fiscal year-to-date period. The Company’s effective tax rate decreased year-over-year to 24.7 percent.  

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