Johnson Outdoors Reports 22% Revenue Decline and $15.3 Million Net Loss in Q1 Fiscal 2025

Johnson Outdoors Inc. reported a significant decline in financial performance for the first quarter of fiscal 2025, ending December 27, 2024. The company recorded net sales of $107.6 million, a decrease of 22% from $138.6 million in the same period last year. This decline was attributed to ongoing market challenges, a cautious retail environment, and increased competitive pressure, which collectively weakened demand across all product segments. The company also experienced a net loss of $15.3 million, or $1.49 per diluted share, compared to a net income of $4.0 million, or $0.38 per diluted share, in the prior year.

In terms of segment performance, the Fishing segment saw sales drop to $82.5 million, down 25% from $110.5 million, primarily due to challenging consumer dynamics and strong sell-in of new products in the previous year. The Camping & Watercraft Recreation segment reported sales of $9.4 million, a 12% decrease, while the Diving segment's sales fell by 10% to $15.7 million. The overall gross profit margin also declined to 29.9%, down from 38.1% in the prior year, largely due to unfavorable overhead absorption and changes in product mix.

Strategically, Johnson Outdoors made a notable acquisition during the quarter, purchasing Endless Summer Technologies Proprietary, Ltd. for approximately $12.2 million. This acquisition is expected to enhance the Diving segment by introducing innovative products and improving operational efficiencies. The company has also combined its previously reported Camping and Watercraft Recreation segments into a single segment for financial reporting purposes, reflecting a shift in how management assesses performance.

Operationally, Johnson Outdoors reported a decrease in accounts receivable to $68.3 million, down from $83.0 million, consistent with lower sales volumes. Inventories also decreased to $201.6 million from $267.3 million as part of ongoing efforts to manage inventory levels. The company maintained a debt-free status, with cash and cash equivalents totaling $95.3 million at the end of the quarter, down from $145.5 million at the end of the previous quarter.

Looking ahead, Johnson Outdoors anticipates continued challenges in the market, particularly in consumer demand and competitive pressures. The company remains focused on integrating its recent acquisition and leveraging its brand portfolio to drive innovation and growth. Management has indicated that they will continue to monitor market conditions closely and adjust their strategies accordingly to navigate the evolving landscape.