Company: JOUT
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001140361-25-017047
Chunk: 30

Company: JOHNSON OUTDOORS INC
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 30
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 announced additional tariffs on goods imported into the U.S. from numerous countries.   These tariffs may result in an increase in product or component costs, which may ultimately negatively impact demand for our products and/or reduce the Company's overall profitability.  The Company continues to analyze the potential impacts of the tariffs and actions that can be taken to mitigate their effects, including, among other options, adjusting our supply chain strategy, evaluating potential operational changes to improve efficiencies, and considering potential adjustments to our pricing strategy.

Highlights

Net sales of $168,349 for the second quarter of fiscal 2025 decreased $7,507, or 4%, from the same period in the prior year.  The decrease between quarterly periods was mainly driven by persistent market challenges across several of the Company's product categories, as well as a cautious approach from the retail and trade environment.  These factors led to reduced demand and revenue in all segments of the Company's outdoor recreation products.  Gross margin remained relatively flat as compared to the prior year quarter, at approximately 35%.  Lower direct expenses driven by the decrease in sales volumes between periods, as well as lower promotions expense and a $3,370 decrease in expense related to the Company's deferred compensation plan contributed to a $5,154 improvement in operating profit in the current year quarter versus the prior year quarter.  

As of December 27, 2024, and as referenced in “Note 16 – Segments of Business” of the notes to the accompanying Condensed Consolidated Financial Statements, the Company has combined the previously reported "Camping" and "Watercraft Recreation" segments into one segment, referred to as "Camping & Watercraft Recreation." 

During the first quarter of fiscal 2025, the Company's Diving segment completed an acquisition of a scuba equipment manufacturer for $12,197, which is expected to provide new innovative products, unlock synergies and enhance operating efficiencies for this segment.  See “Note 18 – Acquisitions” of the notes to the accompanying Condensed Consolidated Financial Statements for additional information.  

Seasonality

The Company’s business is seasonal in nature. The second fiscal quarter traditionally falls within the Company’s primary selling season for its warm-weather outdoor recreation products.  The table below sets forth a historical view of the Company’s seasonality during the last three fiscal years.   

 Fiscal Year 202420232022Quarter EndedNetSalesOperatingLossNetSalesOperatingProfit (Loss)NetSalesOperatingProfitDecember23 %— %27