Company: JOUT
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001140361-25-028318
Chunk: 43

Company: JOHNSON OUTDOORS INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 2
Chunk 43
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.  The Company’s values and culture support innovation in all areas, promoting and leveraging best practices and synergies within and across its subsidiaries to advance the Company’s strategic vision set by executive management and approved by the Company’s Board of Directors.  The Company is controlled by Helen P. Johnson-Leipold, the Company’s Chairman and Chief Executive Officer, members of her family and related entities.

Recent Developments

As disclosed in Part I, Item 1A: Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended September 27, 2024, the Company’s business is subject to risks related to, among other factors, tariffs put in the place by the United States or other countries, including ongoing negotiations on tariffs by the United States with foreign nations and trading partners. During the nine months ended June 27, 2025, the United States government has announced additional tariffs on goods imported into the U.S. from numerous countries.   These tariffs may result in an increase costs to the Company, 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.

As disclosed in Part I, Item 1A: Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended September 27, 2024, the Company is subject to risks related to changes in tax laws or rulings.  On July 4, 2025, the One Big Beautiful Bill (OBBB) Act, which includes a broad range of tax reform provisions, was signed into law in the United States.  The Company is currently assessing the potential impact of the OBBB Act on our estimated annual effective tax rate.  

Highlights

Net sales of $180,655 for the third quarter of fiscal 2025 increased $8,183, or 5%, from the same period in the prior year.  The increase between quarterly periods was mainly driven by innovation and new product success across several of the Company's product categories.  Gross margin increased to 37.6% compared to 35.8% in the prior year quarter.  In addition to the gross margin improvement, lower operating expenses also contributed to a $7,836 improvement in operating profit in the current year quarter versus the prior year