Supply chain disruptions hit Johnson Outdoors fishing brands
Despite continued strong demand for its fishing brands, Johnson Outdoors reported a 5% decline in revenue for the division in the last financial year, driven by supply chain disruption which slowed its ability to complete and ship finished goods.
The global outdoor leisure goods supplier announced a 1% decrease in overall sales to $743.4m (2021: $751.7m) during its fiscal year ending September 30th, 2022. It also reported an operating profit fall of 40% and net income decrease of 47% compared to the previous year.
However, highlights included continued strong orders across all business segments, awards for new product innovation, a debt-free balance sheet and an increased quarterly dividend for its shareholders.
“While fiscal 2022 sales remained relatively flat compared to the previous year, which was one of our strongest-ever, the supply chain situation, primarily in our fishing business, resulted in a significant impact on our profitability,” said Helen Johnson-Leipold, Chairman and CEO. “The fourth quarter showed some easing of supply chain availability and we continue to focus on evaluating options to address increased costs and efficiency of our supply chain.
“We ended the year with strong orders and we continue to replenish customer inventory levels. While it is unclear the extent to which the economic conditions and inflation may affect consumer buying behaviour in the future, we remain focused on sustaining innovation leadership and building value for our customers.”
Johnson’s Watercraft Recreation Division, which includes fishing brands Old Town Canoe and Ocean Kayaks, saw its sales increase 2% due to demand for its Sportsman line.