End of elevated demand and high inventory sees Johnson’s profits plunge
Johnson Outdoors – owner of fishing related brands that include Old Town, Humminbird and Minn Kota – has blamed the end of the elevated pandemic demand and higher inventory for its lower sales and profits in its last financial year.
The Wisconsin-based maker of outdoor recreational equipment and technology reported a sales fall of 11% from $743.4m to $663.8m compared to the previous year, and an 82% decrease in operating profit to from £66.3m to $11.7m.
“The end of the elevated pandemic-driven demand of the past few years, combined with higher inventory levels at retail, resulted in lower sales and profits for our 2023 fiscal year. Our fourth quarter was particularly impacted by significantly lower demand,” said Helen Johnson-Leipold, Chairman and CEO.
Fishing division revenue decreased six per cent and Watercraft sales decreased $27.3m, reflecting significant reductions in overall market demand.
“Heading into fiscal 2024, we are working hard to outperform the challenging marketplace and improving our profit profile,” added Johnson-Leipold. “We are excited about new innovation announced this year, including Minn Kota’s new line of motors and Old Town’s award-winning power-assisted pedal drive boat.
“We will continue to invest in innovation to keep our brands strong and to maximise opportunities to enhance the long-term growth and profitability of all our businesses.”
Johnson Outdoors reported a fourth quarter operating loss of $22.6m, a decline from the previous comparable period which produced a profit of $13.3m.