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Jun 26, 2020
Johnson Outdoors Q3 2020 Earnings Report
Reported lower sales and net income due to the impact of the COVID-19 pandemic, with strong momentum in Fishing, Watercraft Recreation, and Camping partially offsetting the negative effects.
Key Takeaways
Johnson Outdoors reported a decrease in net sales and net income for the third quarter of 2020 compared to the prior year, primarily due to the COVID-19 pandemic's impact on operations. Strong performance in Fishing, Watercraft Recreation, and Camping during May and June was unable to fully offset the negative effects of stay-at-home mandates during the primary selling season.
Net sales decreased by 21.5 percent to $138.4 million compared to $176.3 million in the prior year third quarter.
Operating profit was $12.9 million, down from $28.0 million in the prior year's third quarter.
Net income was $12.9 million, or $1.27 per diluted share, compared to $22.1 million, or $2.19 per diluted share, in the previous year’s third quarter.
Gross margin remained flat at 45.2 percent, with reduced efficiencies from COVID-19 shutdowns offset by improved product mix and pricing.
Johnson Outdoors
Johnson Outdoors
Forward Guidance
The company aims to maintain the positive momentum of its Fishing, Watercraft Recreation, and Camping brands through the end of the year by capitalizing on the increased interest in outdoor activities.
Positive Outlook
- Strong momentum in Fishing, Watercraft Recreation, and Camping in May and June.
- Increased interest in outdoor activities.
- Healthy cash position.
- Focus on ending the year strong.
- Debt-free balance sheet
Challenges Ahead
- COVID-19 pandemic had a significant impact on the quarter.
- Stay-at-home mandates hit during the heart of the primary selling season.
- Travel restrictions continue to limit accessibility to Diving.
- Customer inventory and replenishment and consumer sell-through patterns have shifted due to COVID-19.
- Reduced efficiencies from COVID-19 shutdowns.