Fishing-related sectors endure difficult Q3 at Johnson Outdoors
Johnson Outdoors’ fishing-related businesses endured a difficult third quarter as the group reported an 8% decline in revenue.
The US-based global supplier of outdoor leisure goods saw sales fall to $187m compared to $203.8m in the last comparable quarter. Operating profit was $17.4m compared to $23.8m. Sales in its fishing division, which includes the Humminbird, Minn Kota and Cannon brands, increased by just 1%, driven primarily by price increases. In its Watercraft Recreation sector, sales plummeted by 28%, reflecting ‘significant’ reductions in the overall market.
“Moderating demand from the high pandemic-fueled levels of the past two years in a competitive marketplace impacted results,” said Helen Johnson-Leipold, Chairman and CEO. “However, we remain focused on sustaining innovation leadership and recently we announced an exciting line of new products in Fishing and cutting-edge technology in Watercraft Recreation, underscoring the critical importance of our investment to drive long-term growth.
“The power of our innovation and the strength of our brands continue to position Johnson Outdoors for long-term market success.”
David W. Johnson, group CFO, added: “Looking ahead, we are focused on continuing to improve operational efficiency to strengthen margins and are working to manage inventories appropriately as we enter the off season. Our balance sheet 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 investors.”