Johnson Outdoors fishing brands bounce back as supply issues ease
The continued easing of supply chain constraints saw Johnson Outdoors’ fishing division bounce back from a disappointing last quarter.
The global outdoor recreation equipment supplier reported a 27% increase in sales compared to the previous comparable quarter, driven primarily by improved supply and component availability. In the last quarter it saw sales drop 5% compared to the same period.
The group’s net sales in the first quarter increased 16% to $178.3 million compared to $153.5m.
“We saw positive momentum in our fishing business as supply constraints continued to ease and we worked hard to fill customer orders,” Helen Johnson-Leipold, Chairman and Chief Executive Officer, told investors. “In our Camping and Watercraft Recreation businesses, we are experiencing some softening in the market after the pandemic-fuelled increase in demand of the last few years.”
Watercraft, which includes the Old Town and Ocean Kayak brands, saw its revenue decline 34%, driven by reduction in consumer demand from the high levels seen during the pandemic.
“While it is too early to predict how the fiscal year will go. We are monitoring consumer buying behaviour and are focused on filling orders as we enter the primary selling season,” added Johnson-Leipold.
David Johnson, Chief Financial Officer, said: “While we have seen improvement in some supply availability, gross margins continue to be negatively impacted by high costs in inventory from supply chain disruptions and inflationary pricing conditions. We remain focused on monitoring demand and managing higher than normal inventory levels.
“Our balance sheet, however, remains debt-free and our healthy cash position continues to provide us with the flexibility and resources necessary to invest in strategic opportunities to strengthen the business and consistently pay dividends to shareholders.”