Johnson Outdoors looks to cost savings to offset losses

Johnson Outdoors – the global supplier of fishing electronics and watercraft – has warned of more cost savings following its first financial quarter  saw an operating loss of $20.2 million.

The owner of brands that include Humminbird, Cannon and Minn Kota reported a 22% decline in net sales to $107.6m compared to $138.6m in the previous year.

Revenue fell in all business divisions with fishing showing the largest decrease in sales – 25% – driven by a continued challenging market and competitive dynamics as well as a strong sell-in of new products. Camping and Watercraft, which includes fishing kayak brands including Old Town, sales were down 12%, primarily due to a general decline in consumer demand.

David W, Johnson, Vice President and Chief Financial Officer, told investors that some of the losses were mitigated through cost saving initiatives, which will be expanded during the financial year.

He added: “Our debt-free balance sheet provides a competitive advantage in today’s marketplace and we remain confident in our ability to create long-term value and pay dividends to our shareholders.”

Helen Johnson-Leipold, Chairman and Chief Executive Officer, added: “Ongoing market challenges, a cautious retail environment and competitive pressures resulted in lower quarter sales and profitability. We remain focused on our key strategic priorities and changes necessary for future growth – investing in strong consumer-driven innovation, enhancing our go-to-market strategy and improving operational efficiencies.”