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Mar 27, 2020
Johnson Outdoors Q2 2020 Earnings Report
Reported lower sales and net income due to temporary suspensions across Company operations around the world during the quarter.
Key Takeaways
Johnson Outdoors reported a decrease in net sales by 8% to $163.1 million and a decrease in net income to $20.4 million, or $2.02 per diluted share, during the second fiscal quarter ending March 27, 2020, due to temporary suspensions across Company operations.
Net sales decreased 8% to $163.1 million compared to $177.7 million in the previous year quarter.
Operating profit was $31.8 million compared to $27.8 million in the prior year fiscal second quarter.
Gross margin improved to 46.1 percent from 44.5 percent due primarily to stronger pricing and improved mix.
Net income was $20.4 million, or $2.02 per diluted share, versus $21.9 million, or $2.18 per diluted share, in the previous year quarter.
Johnson Outdoors
Johnson Outdoors
Forward Guidance
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.
Positive Outlook
- Company resumed production and shipments in its North American operations in compliance with government-ordered procedures and public health safety guidelines for COVID-19.
- 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’ benefits were unaffected during the suspension.
- Employees with positions conducive to working from home have been and will continue to do so.
- Johnson Outdoors will be there ready to help people have a great outdoor experience as stay-at-home orders are lifted.
Challenges Ahead
- Government mandates in response to COVID-19 have overlapped with our primary selling season.
- Third quarter is expected to be significantly impacted as a result of COVID-19.
- Uncertainties stemming from changes in U.S. trade policies, tariffs, and the reaction of other countries to such changes.
- The global outbreaks of disease, such as the COVID-19 pandemic beginning in late 2019 and spreading across the globe in early 2020, which may affect market and economic conditions, along with wide-ranging impacts on employees, customers and various aspects of operations.
- Changes in economic conditions, consumer confidence levels and discretionary spending patterns in key markets.