Johnson Outdoors Reports $12.986 Million Net Loss and Revenue Decline in Latest Six Months

Johnson Outdoors Inc. reported a net loss of $12.986 million for the six months ended March 28, 2025, a significant decline from a net income of $6.111 million during the same period in the previous year. The company's revenue for the second quarter of fiscal 2025 was $168.349 million, down 4% from $175.856 million in the prior year, primarily due to ongoing market challenges and reduced demand across its product categories. The gross margin remained stable at approximately 35%, while operating profit for the quarter improved to $4.901 million, compared to an operating loss of $0.253 million in the same quarter last year.

The company experienced notable declines in its Fishing segment, which reported sales of $134.891 million, down 3% from $138.608 million in the previous year. The Camping & Watercraft Recreation segment saw a 12% decrease in sales to $17.852 million, largely due to the exit from the Eureka! brand, which had contributed approximately $2.950 million in sales in the prior year. The Diving segment also faced challenges, with sales declining 7% to $15.820 million, attributed to soft market demand across all regions.

Strategically, Johnson Outdoors completed the acquisition of Endless Summer Technologies Proprietary, Ltd. for approximately $12.197 million, which is expected to enhance its Diving segment by introducing innovative products and 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 and allocates resources.

Operationally, Johnson Outdoors reported a decrease in accounts receivable to $116.776 million, down from $129.345 million a year earlier, consistent with lower sales volumes. Inventories also decreased to $180.057 million, a reduction of $69.144 million compared to the previous year, as part of ongoing efforts to manage inventory levels. The company maintained a debt-free status, with cash and cash equivalents totaling $93.951 million as of March 28, 2025.

Looking ahead, Johnson Outdoors anticipates continued challenges in the market, particularly due to economic uncertainties and potential impacts from tariffs on imported goods. The company is focused on adjusting its supply chain strategy and operational efficiencies to mitigate these risks. Despite the current difficulties, management remains committed to leveraging its brand strength and innovation to drive future growth.