Johnson Outdoors Inc.

05/08/2026 | Press release | Distributed by Public on 05/08/2026 13:13

Quarterly Report for Quarter Ending April 3, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") includes comments and analysis relating to the results of operations and financial condition of Johnson Outdoors Inc. and its subsidiaries (collectively, the "Company") as of and for the three and six month periods ended April 3, 2026 and March 28, 2025. All monetary amounts, other than share and per share amounts, are stated in thousands.
This discussion should be read in conjunction with the Condensed Consolidated Financial Statements and related notes that immediately precede this section, as well as the Company's Annual Report on Form 10-K for the fiscal year ended October 3, 2025 which was filed with the Securities and Exchange Commission on December 12, 2025.
Forward Looking Statements
Certain matters discussed in this Form 10-Q are "forward-looking statements," and the Company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities
- 23 -
Index
JOHNSON OUTDOORS INC.
Litigation Reform Act of 1995 and is including this statement for purposes of those safe harbor provisions. These forward-looking statements can generally be identified as such because they include phrases such as the Company "expects," "believes," "anticipates," "intends," use of words such as "confident," "could," "may," "planned," "potential," "should," "will," "would" or the negative of such words or other words of similar meaning. Similarly, statements that describe the Company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results or outcomes to differ materially from those currently anticipated.
Factors that could affect actual results or outcomes include the matters described under the caption "Risk Factors" in Item 1A of the Company's Form 10-K for the fiscal year ended October 3, 2025 which was filed with the Securities and Exchange Commission on December 12, 2025 and the following: changes in economic conditions, consumer confidence levels and discretionary spending patterns in key markets; uncertainties stemming from political instability or changes in government policy and actions (and its impact on the economies in jurisdictions where the Company has operations); uncertainties stemming from changes in U.S. trade policies, tariffs, and the reaction of other countries to such changes; the global outbreaks of disease which may affect market and economic conditions and may have wide-ranging impacts on employees, customers and various aspects of our operations; the Company's success in implementing its strategic plan, including its targeted sales growth platforms, innovation focus and its increasing digital presence; litigation costs related to actions of and disputes with third parties, including competitors; the Company's continued success in its working capital management and cost-structure reductions; the Company's success in integrating strategic acquisitions; the risk of future writedowns of goodwill or other long-lived assets; the ability of the Company's customers to meet payment obligations; the impact of actions of the Company's competitors with respect to product development or enhancement or the introduction of new products into the Company's markets; movements in foreign currencies, interest rates or commodity costs; fluctuations in the prices of raw materials or the availability of raw materials or components used by the Company; any disruptions in the Company's supply chain as a result of material fluctuations in the Company's order volumes and requirements for raw materials and other components, or the demand for those same raw materials and components by third parties, necessary to manufacture and produce the Company's products including related to shortages in procuring necessary raw materials and components to manufacture and produce such products; the success of the Company's suppliers and customers and the impact of any consolidation in the industries of the Company's suppliers and customers; the ability of the Company to deploy its capital successfully; unanticipated outcomes related to outsourcing certain manufacturing processes; unanticipated outcomes related to litigation matters; and adverse weather conditions and other factors impacting climate change legislation. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this filing. The Company assumes no obligation, and disclaims any obligation, to update such forward-looking statements to reflect subsequent events or circumstances.
Trademarks
We have registered the following trademarks, among others, which may be used in this report: Minn Kota®, Cannon®, Humminbird®, Jetboil®, Old Town®, Carlisle®, and SCUBAPRO®.
Overview
The Company is a leading global manufacturer and marketer of branded seasonal outdoor recreation products used primarily for fishing, diving, paddling and camping. The Company's portfolio of well-known consumer brands has attained leading market positions due to continuous innovation, marketing excellence, product performance and quality. The Company's values and culture support innovation in all areas, promoting and leveraging best practices and synergies within and across its subsidiaries to advance the Company's strategic vision set by executive management and approved by the Company's Board of Directors. The Company is controlled by Helen P. Johnson-Leipold, the Company's Chairman and Chief Executive Officer, members of her family and related entities.
Highlights
Net sales of $194,480 for the second quarter of fiscal 2026 increased $26,131, or 16%, from the same period in the prior year. The increase between quarterly periods was mainly driven by improved trade conditions, price increases, and strong overall product response in the markets in which we compete, especially in the Fishing segment. Gross margin increased to 38.8% compared to 35.0% in the prior year quarter. The sales gain and margin improvement contributed to a $5,448 increase in operating income in the current year quarter versus the prior year quarter.
On February 20, 2026, the Supreme Court of the United States ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. Certain of the Company's imports were previously subject to such tariffs under IEEPA. Effective April 20, 2026, the U.S. Customs and Border Protection launched a platform for importers of record to begin submitting IEEPA tariff refund requests. We are unable to estimate any applicable financial effects for any recovery of potential
- 24 -
Index
JOHNSON OUTDOORS INC.
refunds, as the timing and amount of recovery are uncertain. We will continue to assess and evaluate new information as it becomes available.
Seasonality
The Company's business is seasonal in nature. The second fiscal quarter traditionally falls within the Company's primary selling season for its warm-weather outdoor recreation products. The table below sets forth a historical view of the Company's seasonality during the last three fiscal years.
Fiscal Year
2025 2024 2023
Quarter Ended Net
Sales 		Operating (Profit)
Loss 		Net
Sales 		Operating
Profit (Loss) 		Net
Sales 		Operating
Profit (Loss)
December 18 % 125 % 23 % - % 27 % 47 %
March 28 % (30) % 30 % 1 % 30 % 97 %
June 31 % (45) % 29 % 1 % 28 % 149 %
September 23 % 50 % 18 % 98 % 15 % (193) %
100 % 100 % 100 % 100 % 100 % 100 %
Results of Operations
The Company's net sales and operating profit (loss) by business segment for the periods shown below were as follows:
Three Months Ended Six Months Ended
April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025
Net sales:
Fishing $ 159,025 $ 134,891 $ 271,395 $ 217,363
Camping & Watercraft Recreation
18,053 17,852 28,654 27,303
Diving 17,315 15,820 35,289 31,504
Other / Corporate / Eliminations 87 (214) 77 (172)
Total $ 194,480 $ 168,349 $ 335,415 $ 275,998
Operating profit (loss):
Fishing $ 18,705 $ 9,469 $ 26,225 $ 1,208
Camping & Watercraft Recreation
788 1,246 (330) 600
Diving (236) (413) (572) (1,321)
Other / Corporate / Eliminations (8,908) (5,401) (17,886) (15,825)
Total $ 10,349 $ 4,901 $ 7,437 $ (15,338)
See "Note 16 - Segments of Business" of the notes to the accompanying Condensed Consolidated Financial Statements for the definition of segment net sales and operating profit.
Net Sales - Second Fiscal Quarter
Consolidated net sales for the three months ended April 3, 2026 were $194,480, an increase of $26,131, or 16%, compared to $168,349 for the three months ended March 28, 2025. Foreign currency translation had an impact of less than 1% on current year second quarter consolidated net sales compared to the prior year's second quarter consolidated net sales.
Net sales for the three months ended April 3, 2026 for the Fishing business were $159,025, an increase of $24,134, or 18%, from $134,891 during the second fiscal quarter of the prior year. The increase in sales in this segment between quarters was mainly due to improved trade conditions, a stronger competitive position in the market, and pricing.
- 25 -
Index
JOHNSON OUTDOORS INC.
Net sales for the Camping & Watercraft Recreation business were $18,053 for the second quarter of the current fiscal year, an increase of $201, or 1%, from the prior year net sales during the same period of $17,852. Growth in e-commerce channels overcame the unfavorable impact of a continuing weak end market for watercraft recreation products.
Net sales for Diving for the second quarter of fiscal 2026 were $17,315, which increased $1,495, or 9%, compared to net sales of $15,820 for the three months ended March 28, 2025. The sales increase over the prior year second quarter was primarily driven by the improved market conditions and growth in ecommerce. Additionally, foreign currency translation had a favorable impact of approximately 5% on sales in this segment in the current year second quarter versus the prior year second quarter.
Net Sales - Year-To-Date
Consolidated net sales for the six months ended April 3, 2026 were $335,415, an increase of $59,417, or 21.5%, compared to $275,998 for the six months ended March 28, 2025. Foreign currency translation had a negligible impact on net sales of the current year to date period compared to the prior year to date period.
Net sales for the six months ended April 3, 2026 for the Fishing business were $271,395, an increase of $54,032, or 25%, from $217,363 during the prior year to date period. The increase in sales in this segment between year to date periods was mainly due to improved trade conditions, sales generated by the launch of new products, and pricing.
Net sales for the six months ended April 3, 2026 for the Camping & Watercraft Recreation business were $28,654, an increase of $1,351, or 5%, from the prior year net sales during the same period of $27,303. Growth in e-commerce channels overcame the unfavorable impact of a continuing weak end market for watercraft recreation products.
Net sales for the six months ended April 3, 2026 for the Diving business were $35,289, an increase of $3,785, or 12%, compared to net sales of $31,504 for the six months ended March 28, 2025. The sales increase over the prior year to date period was primarily driven by the improved market conditions and growth in ecommerce. Additionally, foreign currency translation had a favorable impact of approximately 5% on sales in this segment versus the prior year to date period.
Cost of Sales
Cost of sales for the three months ended April 3, 2026 of $118,992 increased $9,509 compared to $109,483 for the three months ended March 28, 2025, due primarily to the increase in sales volumes over the prior year quarter as well as higher costs from tariffs in the current year second quarter on purchased raw materials and components. Higher material costs were offset in part by lower labor costs driven by efficiencies from cost cutting initiatives.
Cost of sales for the six months ended April 3, 2026 of $208,317 increased $23,368 compared to $184,949 for the six months ended March 28, 2025, due primarily to the increase in sales volumes over the prior year to date period as well as higher costs from tariffs on purchased raw materials and components incurred in the current year to date period. Higher material costs were offset in part by lower labor costs driven by efficiencies from cost cutting initiatives.
Gross Profit Margin
For the three months ended April 3, 2026, gross profit as a percentage of net sales increased to 38.8% compared to 35.0% in the three month period ended March 28, 2025, mainly as a result of improved overhead absorption driven by higher sales volumes between the quarters. Pricing actions taken by the Company and cost saving initiatives also helped offset the impact of incremental tariffs in the current quarter.
For the six months ended April 3, 2026, gross profit as a percentage of net sales increased to 37.9% compared to 33.0% in the six months ended March 28, 2025, mainly as a result improved overhead absorption driven by higher sales volumes between the periods. Pricing actions taken by the Company and cost savings initiatives also helped to offset the impact of incremental tariffs in the current year to date period.
Operating Expenses
Operating expenses were $65,139 for the three months ended April 3, 2026, compared to $53,965 for the three months ended March 28, 2025. The main drivers of the $11,174 increase between quarters were higher sales-volume related costs as well as increased variable compensation costs.
Operating expenses were $119,661 for the six months ended April 3, 2026, compared to $106,387 for the six months ended March 28, 2025. The main drivers of the $13,274 increase between year to date periods were higher sales-volume related costs, higher variable compensation costs and additional professional services expense in the current year to date period.
- 26 -
Index
JOHNSON OUTDOORS INC.
Operating Profit/Loss
Operating profit on a consolidated basis for the three month period ended April 3, 2026 was $10,349, compared to $4,901 in the second quarter of the prior fiscal year. As discussed above, the improvement in operating profit between quarters was driven primarily by an increase in sales and gross margin improvements between periods.
Operating profit on a consolidated basis for the six month period ended April 3, 2026 was $7,437, compared to operating loss of $15,338 in the prior year to date period. As discussed above, the improvement in operating profit (loss) was driven primarily by an increase in sales and gross margin improvements between periods.
Interest
Interest expense was $48 and $68 for the three months ended April 3, 2026 and March 28, 2025, respectively, and $105 and $115 for the six months ended April 3, 2026 and March 28, 2025, respectively.
Interest income was $632 and $625 for the three months ended April 3, 2026 and March 28, 2025, respectively, and $1,952 and $1,658 for the six months ended April 3, 2026 and March 28, 2025, respectively.
Other Expense (Income), net
Other income was $726 for the three months ended April 3, 2026 compared to $1,300 in the prior year period. The main driver of the $574 decrease period over period was a $418 decrease in net investment gains and earnings on the assets related to the Company's non-qualified deferred compensation plan in the current year quarter, entirely offset as a reduction to operating expense. For the three months ended April 3, 2026, foreign currency exchange gains were $196 compared to foreign currency exchange losses of $21 for the three months ended March 28, 2025.
Other income was $332 for the six months ended April 3, 2026 compared to $974 in the prior year period. The $642 decrease was primarily attributable to a $639 decrease in net investment gains and earnings on the assets related to the Company's non-qualified deferred compensation plan in the current year-to-date period, entirely offset as a reduction to operating expense. For the six months ended April 3, 2026, foreign currency exchange gains were $128 compared to foreign currency exchange gains of $183 for the six months ended March 28, 2025.
Income Tax Expense
The Company's provision for income taxes is based upon estimated annual effective tax rates in the tax jurisdictions in which the Company operates. The Company recorded income tax expense of $798 and $2,843, respectively, in the three and six month periods ended April 3, 2026 which equated to an effective tax rate of 7.8% and 31.8%, respectively. The effective tax rate was impacted by an adjustment related to the Company's U.S. valuation allowance on deferred tax assets. The Company recorded an expense of $1,854 during the three months ended March 28, 2025, which equated to an effective tax rate of 44.6%. The Company recorded a benefit of $1,783 during the six months ended March 28, 2025, which equated to an effective tax benefit of 12.1%.
Net Income/Loss
Net income for the three months ended April 3, 2026 was $9,409, or $0.89 per diluted common class A and B share, compared to $2,304, or $0.22 per diluted common class A and B share, for the second quarter of the prior fiscal year.
Net income for the six months ended April 3, 2026 was $6,109, or $0.58 per diluted common class A and B share, compared to net loss of $12,986, or $1.26 per diluted common class A and B share, during the corresponding period of the prior fiscal year.
Liquidity and Financial Condition
Cash and cash equivalents and short term investments totaled $107,876 as of April 3, 2026, compared to $93,951 as of March 28, 2025. The Company's debt to total capitalization ratio was 0% as of April 3, 2026 and March 28, 2025. The Company's total debt balance was $0 as of each of April 3, 2026 and March 28, 2025. See "Note 11 - Indebtedness" in the notes to the Company's accompanying condensed consolidated financial statements for further discussion of our credit facilities.
Accounts receivable, net of allowance for credit losses, were $126,852 as of April 3, 2026, an increase of $10,076 compared to $116,776 as of March 28, 2025. The increase is consistent with the increased sales volumes over the prior year quarter.
- 27 -
Index
JOHNSON OUTDOORS INC.
Inventories were $186,900 as of April 3, 2026, an increase of $6,843, compared to $180,057 as of March 28, 2025. The increase is the result of a strategic ramp-up of inventory and safety stock in response to higher sales volumes period over period. Accounts payable were $52,332 at April 3, 2026 compared to $44,323 as of March 28, 2025. The increase of $8,010 is consistent with the increase in inventory.
The Company's cash flows from operating, investing and financing activities, as presented in the Company's accompanying Condensed Consolidated Statements of Cash Flows, are summarized in the following table:
Six months ended
(thousands) April 3,
2026 		March 28,
2025
Cash used for:
Operating activities $ (50,700) $ (38,566)
Investing activities (10,475) (7,749)
Financing activities (6,897) (6,879)
Effect of foreign currency rate changes on cash (451) (2,668)
Decrease in cash and cash equivalents $ (68,523) $ (55,862)
Operating Activities
Cash used for operations totaled $50,700 for the six months ended April 3, 2026 compared to $38,566 during the corresponding period of the prior fiscal year. The increase in cash used for operations over the prior year six month period was due primarily to inventory changes between periods offset in part by higher income in the current year to date period. Depreciation and amortization charges were $10,097 for the six month period ended April 3, 2026 compared to $10,041 for the corresponding period of the prior year.
Investing Activities
Cash used for investing activities totaled $10,475 for the six months ended April 3, 2026 compared to $7,749 for the corresponding period of the prior fiscal year. The prior year period reflects $12,197 paid to acquire a business, partially offset by proceeds from maturity of investments of $11,826. Capital expenditures were $10,496 in the six months ended April 3, 2026, compared to $7,378 in the prior year to date period. Any additional capital expenditures in fiscal 2026 are expected to be funded by working capital.
Financing Activities
Cash used for financing activities totaled $6,897 for the six months ended April 3, 2026 compared to $6,879 for the six month period ended March 28, 2025 and represents the payment of dividends and purchase of treasury stock for both periods. The Company had no debt during either six month period ended April 3, 2026 and March 28, 2025. See Note 11 "Indebtedness" to the accompanying Condensed Consolidated Financial Statements for additional information on our credit facilities.
As of April 3, 2026 the Company held approximately $61,795 of cash, cash equivalents and short-term investments in bank accounts in foreign taxing jurisdictions.
Contractual Obligations and Off Balance Sheet Arrangements
The Company has contractual obligations and commitments to make future payments including under operating leases and open purchase orders. There have been no changes outside of the ordinary course of business in the specified contractual obligations during the quarter ended April 3, 2026.
The Company utilizes letters of credit primarily as security for the payment of future claims under its workers compensation insurance. Letters of credit outstanding were approximately $51 and $67 as of April 3, 2026 and March 28, 2025, respectively.
The Company has no other off-balance sheet arrangements.
Critical Accounting Policies and Estimates
- 28 -
Index
JOHNSON OUTDOORS INC.
The Company's critical accounting policies and estimates are identified in the Company's Annual Report on Form 10-K for the fiscal year ending October 3, 2025 in Management's Discussion and Analysis of Financial Condition and Results of Operations under the heading "Critical Accounting Estimates", which was filed with the Securities and Exchange Commission on December 12, 2025. There were no significant changes to the Company's critical accounting policies and estimates during the six months ended April 3, 2026.
Johnson Outdoors Inc. published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 08, 2026 at 19:13 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]