Supply chain issues stifle Johnson Outdoors fishing sales
Ongoing supply disruptions resulted in a 12% decline in fishing product sales for international supplier of outdoor leisure goods Johnson Outdoors in the third quarter of its financial year.
The Wisconsin-based business, owner of fishing electronics brands Humminbird, Minn Kota and Cannon, reported a 5% decline to $203.8m in total sales compared to the same period last year.
“Markets are starting to moderate against the unprecedented last two seasons that were driven by the pandemic,” said Helen Johnson-Leipold. “Our orders remain strong and we are working hard to fill them as supply comes in. Managing ongoing global supply chain challenges, particularly in our fishing business, remains our chief focus as we prioritise maximising product build and shipments to customers.
“The power of our innovation and the strength of our brands continue to position Johnson Outdoors for long-term marketplace success.”
David W. Johnson, Chief Financial Officer, added: “To mitigate supply chain disruption, we have built up significantly higher levels of raw materials and component inventory as we work to fulfil our strong order position. Our gross margins have been negatively impacted by supply chain constraints and related inflationary trends in the marketplace.
“Our strong balance sheet and cash position continue to enable us to invest in opportunities to strengthen the business and deliver long-term value and consistently pay dividends to shareholders.”
Watercraft, which includes a number of fishing kayak brands, continued its upward curve with a 10% increase in sales.
For the year to date, net sales were $547m, a 7% decrease over the last comparable nine months. Total operating profit declined to $53m compared to $97.7m.