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A tariff refund of $15m helped one of the world’s leading suppliers of outdoor recreation equipment post a five percent increase in revenue during its third quarter of trading.
Johnson Outdoors reported revenue of $189.7m compared to the $180.7m during the previous period, helped by a seven percent revenue increase in sales from its Fishing Division and driven by the strong performance of the Minn Kota brand. The Camping & Watercraft Recreation sector, which includes its Old Town fishing kayak brand, saw a 13% decine in sales, primarily due to weak marketplace conditions.
“We have delivered solid third quarter results with total company sales increasing five percent, reflecting the strength of our market-leading brands,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “While macro-economic conditions (main picture) remain uncertain, we continue to focus on advancing our strategic priorities, strengthening our competitive position and making the investments necessary to support long-term growth.”
Asad Rahman, Chief Financial Officer, told investors: “We recognised approximately $15m of tariff refunds in the third quarter, with some of that benefit offset by broader cost inflation and other expense increases. As tariff policies continue to evolve, we remain cautious about the outlook for costs and are monitoring developments closely. Our inventory increased compared to the prior year quarter as we positioned the business to support sales demand and we remain confident in our inventory management processes and our ability to maintain healthy inventory levels.”
For the year-to-date net sales were $525.1m, a 15% increase over last year’s fiscal nine-month period. Gross margin increased to 40.6%, compared to 4.8% in the last comparable period. “Tariff refunds, pricing actions, improved overhead absorption and cost savings initiatives more than offset higher material costs to drive margin improvement in the current year-to-date,” said the company.
“Operating expenses increased $20.3m in the nine-month period ending July 3, from the previous year due to higher sales-volume related costs, higher variable compensation costs and additional professional services expense.”
Profit before tax for the year to date was $32.2m against a loss of $4.3m last year.
