Company: JOUT
Filing Date: 2025-12-12
Form Type: 10-K
Source: 0001140361-25-045348
Chunk: 27

Company: JOHNSON OUTDOORS INC
Filing Date: 2025-12-12
Form: 10-K
Item: Item 7
Chunk 27
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5 versus the prior year period.

Cost of Sales

Cost of sales was $384,322, or 64.9% of net sales, on a consolidated basis for fiscal 2025 compared to $391,866, or 66.1% of net sales, in the prior year.  Incremental tariffs incurred during the current year were, in large part, capitalized on the balance sheet at October 3, 2025.  The decrease in cost of sales as a percent of net sales year over year was driven primarily by the sell-off of remaining Eureka! branded product in the prior year at very low margins.  

Gross Profit

Gross profit of $208,093 was 35.1% of net sales on a consolidated basis for the year ended October 3, 2025 compared to $200,980, or 33.9% of net sales in the prior year. 

Gross profit in the Fishing business increased by $3,451 from the prior year due primarily to the 2% increase in net sales year over year.  Material and labor cost increases were largely offset by lower inventory reserves and improved absorption of fixed overhead costs between the periods.

Camping & Watercraft Recreation gross profit decreased by $788 from 2024, where the impact of lower sales volumes was partially offset by an improved product mix in fiscal 2025 after fully exiting the Eureka! brand in early 2025.  

The $4,494 increase in gross profit in the Diving segment was largely due to increased sales as well as reduced inventory reserves and selected pricing actions taken in the current year.

Operating Expenses

Operating expenses decreased from the prior year by $20,218.  Key drivers of the expense change were an $11,173 write off of goodwill in the prior year, approximately $3,600 of lower deferred compensation costs between years, and a decrease in promotional spending versus the prior year period.  

Operating expenses for the Fishing segment decreased by $22,717 from fiscal 2024 levels.  This decrease was due primarily to the $11,173 write off of goodwill in the prior year, as well as approximately $10,000 of lower advertising and promotional spend between years.

Camping & Watercraft Recreation operating expenses decreased by $2,194 from the prior year, mainly due to decreased sales volume related costs between years.

Operating expenses for the Diving business increased by $1,583 year over year due primarily to increased variable compensation costs between periods.

The Company's