Johnson Outdoors (JOUT) investor relations material

Executive summary

• Third quarter net sales rose 5% year-over-year to $189.7 million, driven by strong performance in Fishing and Diving segments, improved trade conditions, and pricing actions.

• Operating income for Q3 increased to $18.3 million, more than doubling from the prior year, aided by a $15–15.6 million tariff refund.

• Net income for Q3 was $14.9 million ($1.42 per diluted share), up from $7.7 million ($0.75 per share) in the prior year.

• Year-to-date net sales increased 15% to $525.1 million, with net income of $21.1 million versus a net loss last year.

• Strategic focus remains on innovation, digital and e-commerce excellence, and operational efficiencies.

Financial highlights

• Gross margin for Q3 improved to 45.3%, up from 37.6% last year, primarily due to the tariff refund.

• Year-to-date gross margin was 40.6%, up from 34.8% in the prior year.

• Operating expenses increased by $7 million in Q3, mainly from higher sales volume and variable compensation.

• Profit before income taxes for Q3 was $23.3 million, compared to $10.5 million a year ago.

• Cash and cash equivalents at quarter-end were $175.2 million, with no outstanding debt.

Outlook and guidance

• Management expects continued benefit from improved trade conditions and cost-saving initiatives, but remains cautious about cost outlook due to evolving tariffs and inflation.

• Gross margin outlook is stable, with pricing and cost savings offsetting raw material cost headwinds.

• Additional capital expenditures in fiscal 2026 are expected to be funded by working capital.

• Full-year tax expense is projected at $5–6 million due to valuation allowance impacts.

• Inventory levels increased to support sales demand, with confidence in inventory management.