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 to the improvement as retail conditions improved.

• Year-to-date net sales increased 21.5% to $335.4 million, with operating income and gross margin also higher.

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

• Market-leading brands and product innovation, especially in fishing, camping, watercraft, and diving, drove strong results.

• Strategic focus on consumer-driven innovation, digital and e-commerce, and operational efficiencies is strengthening market position.

Financial highlights

• Gross margin for Q2 improved to 38.8%, up 3.8 points from the prior year quarter; year-to-date gross margin is 37.9%, up 4.9 points.

• 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

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

• Gross margin improvement driven by operating leverage and cost savings, but component cost pressures may be a headwind in coming quarters.

• Operating expenses expected to stabilize as volume-driven costs settle and investments in foundational systems become more efficient.

• Tax expense for the year expected to be $4–5 million, with quarterly rates varying based on profit mix.