Johnson Outdoors (JOUT) investor relations material

Executive summary

• Second quarter revenue grew 16% year-over-year to $194.5 million, with all business segments contributing as retail conditions improved.

• Operating income more than doubled to $10.3 million from $4.9 million year-over-year, driven by higher sales and improved margins.

• Year-to-date net sales are up 21.5% to $335.4 million compared to the same six-month period last year.

• Market-leading brands, product innovation, and digital expansion continue to reinforce leadership positions and drive consumer demand.

• Net income increased to $9.4 million ($0.89 per diluted share) from $2.3 million ($0.22 per diluted share) in the prior year quarter.

Financial highlights

• Gross margin for Q2 improved to 38.8%, up 3.8 points from the prior year quarter, attributed to better overhead absorption and cost savings.

• Operating expenses increased by $11.2 million year-over-year, mainly due to higher sales volume and variable compensation.

• Profit before income taxes for Q2 was $10.2 million, up from $4.2 million in the prior year quarter.

• Cash and short-term investments totaled $107.9 million, up $13.9 million from the prior year quarter.

• Inventory at quarter-end was $186.9 million, up $6.8 million year-over-year.

Outlook and guidance

• Management remains focused on financial discipline and balancing near-term pressures with investments for sustainable growth.

• Gross margin may face headwinds from dynamic component costs in coming quarters, but cost savings efforts are expected to help offset this.

• Operating expenses are expected to stabilize in the next couple of quarters as volume-driven costs settle.

• Tax expense for the year is projected at $4–5 million, with quarterly rates fluctuating based on profit mix.