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Mar 29, 2024
Johnson Outdoors Q2 2024 Earnings Report
Johnson Outdoors experienced a decline in net sales and operating profit due to challenging marketplace conditions.
Key Takeaways
Johnson Outdoors reported a decrease in net sales by 13% to $175.9 million and an operating loss of $0.25 million for the second quarter. The company faced challenging market conditions across all segments and is focusing on cost structure improvements and new product launches.
Net sales decreased by 13% to $175.9 million compared to the prior year second fiscal quarter.
Operating loss was $0.25 million, a decline from the prior year's operating profit of $11.4 million.
Gross margin decreased to 34.9 percent, primarily due to unfavorable overhead absorption and promotional price reductions.
Net income was $2.2 million, or $0.21 per diluted share, compared to $14.9 million, or $1.45 per diluted share, in the previous year.
Johnson Outdoors
Johnson Outdoors
Forward Guidance
The company is investing in marketing and promotions, supporting new product launches, improving cost structure, and reducing inventory levels to position itself for long-term marketplace success.
Positive Outlook
- Investing in marketing and promotions.
- Supporting new product launches like the Minn Kota Quest trolling motor line.
- Improving cost structure.
- Reducing inventory levels.
- Focusing on innovation and strengthening brands.
Challenges Ahead
- Challenging marketplace conditions.
- Increased competitive pressure.
- Decline in Camping segment due to divestiture of Military and Commercial Tents business.
- Diving sales impacted by geopolitical issues affecting travel.
- Unfavorable overhead absorption and promotional price reductions affecting gross margin.