Results

Johnson Outdoors Inc.

08/07/2026 | Press release | Distributed by Public on 08/07/2026 10:07

Quarterly Report for Quarter Ending July 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 nine month periods ended July 3, 2026 and June 27, 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 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 write-downs 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®.
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JOHNSON OUTDOORS INC.
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 $189,731 for the third quarter of fiscal 2026 increased $9,076, or 5%, 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 45.3% compared to 37.6% in the prior year quarter due in large part to tariff refunds received during the current quarter as discussed below. The sales gain and margin improvement contributed to an $11,013 increase in operating income in the current year quarter versus the prior year quarter.
As discussed in "Note 10 - Contingencies," during the third fiscal quarter, the Company submitted claims for refunds of IEEPA tariffs previously paid on imports in fiscal 2025 and early 2026. Refunds received through July 3, 2026 totaled approximately $15,600, including interest. The Company recognized a benefit in Cost of sales on the accompanying Condensed Consolidated Statements of Operations for $15,015 representing the portion of the refund relating to products previously sold.
Seasonality
The Company's business is seasonal in nature. The third 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:
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JOHNSON OUTDOORS INC.
Three Months Ended Nine Months Ended
July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025
Net sales:
Fishing $ 149,985 $ 140,679 $ 421,380 $ 358,042
Camping & Watercraft Recreation
16,432 18,908 45,086 46,211
Diving 23,313 21,201 58,602 52,705
Other / Corporate / Eliminations 1 (133) 78 (305)
Total $ 189,731 $ 180,655 $ 525,146 $ 456,653
Operating profit (loss):
Fishing $ 26,364 $ 14,553 $ 52,589 $ 15,761
Camping & Watercraft Recreation
1,116 1,588 786 2,188
Diving 3,286 1,576 2,714 255
Other / Corporate / Eliminations (12,423) (10,387) (30,309) (26,212)
Total $ 18,343 $ 7,330 $ 25,780 $ (8,008)
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 - Third Fiscal Quarter
Consolidated net sales for the three months ended July 3, 2026 were $189,731, an increase of $9,076, or 5%, compared to $180,655 for the three months ended June 27, 2025. Foreign currency translation had a negligible impact on current year third quarter consolidated net sales compared to the prior year's third quarter consolidated net sales.
Net sales for the three months ended July 3, 2026 for the Fishing business were $149,985, an increase of $9,306, or 7%, from $140,679 during the third fiscal quarter of the prior year. The increase in sales in this segment between quarters was mainly due to a stronger competitive position in the market for Company products and product pricing increases between periods.
Net sales for the Camping & Watercraft Recreation business were $16,432 for the third quarter of the current fiscal year, a decrease of $2,476, or 13%, from the prior year net sales during the same period of $18,908. The decline was driven primarily by the unfavorable impact of continuing weak marketplace conditions for the segment.
Net sales for Diving for the third quarter of fiscal 2026 were $23,313, which increased $2,112, or 10%, compared to net sales of $21,201 for the three months ended June 27, 2025. The sales increase over the prior year third quarter was primarily driven by strong sales in the U.S. and Asian marketplaces. Additionally, foreign currency translation had a favorable impact of approximately 2% on sales in this segment in the current year quarter versus the prior year quarter.
Net Sales - Year-To-Date
Consolidated net sales for the nine months ended July 3, 2026 were $525,146, an increase of $68,493, or 15.0%, compared to $456,653 for the nine months ended June 27, 2025. Foreign currency translation had an impact of less than 1% on net sales of the current year to date period compared to the prior year to date period.
Net sales for the nine months ended July 3, 2026 for the Fishing business were $421,380, an increase of $63,338, or 18%, from $358,042 during the prior year to date period. The increase in sales in this segment between year to date periods was mainly due to sales generated by a stronger competitive position for Company products and product pricing increases between periods.
Net sales for the nine months ended July 3, 2026 for the Camping & Watercraft Recreation business were $45,086, a decrease of $1,125, or 2%, from the prior year net sales during the same period of $46,211 due primarily to the unfavorable impact of a continuing weak end-market for watercraft recreation products.
Net sales for the nine months ended July 3, 2026 for the Diving business were $58,602, an increase of $5,897, or 11%, compared to net sales of $52,705 for the nine months ended June 27, 2025. The sales increase over the prior year to date period was primarily driven by an improved market position and the success of new products introduced during the current year to date period. Additionally, foreign currency translation had a favorable impact of approximately 3% on sales in this segment versus the prior year to date period.
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JOHNSON OUTDOORS INC.
Cost of Sales
Cost of sales for the three months ended July 3, 2026 of $103,796 decreased $8,932 compared to $112,728 for the three months ended June 27, 2025. The decline year over year is driven primarily by the refund of approximately $15,000 of IEEPA tariffs received by the Company during the current year quarter which were recognized as a reduction to Cost of sales. The impact of these refunds was offset in part by additional costs related to increased sales volumes and higher costs of raw materials.
Cost of sales for the nine months ended July 3, 2026 of $312,113 increased $14,436 compared to $297,677 for the nine months ended June 27, 2025, due primarily to the increase in sales volumes over the prior year to date period as well as higher costs of raw materials and components incurred in the current year to date period. The cost increases were offset in part by the tariff refunds noted above and lower labor and overhead costs driven by volume efficiencies and cost cutting initiatives implemented by the Company during the current year to date period.
Gross Profit Margin
For the three months ended July 3, 2026, gross profit as a percentage of net sales increased to 45.3% compared to 37.6% in the three month period ended June 27, 2025. The IEEPA tariff refunds noted above drove 7.9 points of improvement over the prior year period. Improved overhead absorption driven by higher sales volumes between the quarters, pricing actions taken by the Company and cost saving initiatives offset the impact of raw material cost increases and additional tariffs paid in the current quarter.
For the nine months ended July 3, 2026, gross profit as a percentage of net sales increased to 40.6% compared to 34.8% in the nine months ended June 27, 2025. The IEEPA tariff refunds noted above drove 2.9 points of the improvement between periods. Additionally, pricing actions taken by the Company, improved overhead absorption and cost savings initiatives more than offset the impact of higher material costs incurred in the current year to date period to further drive margin improvement.
Operating Expenses
Operating expenses were $67,592 for the three months ended July 3, 2026, compared to $60,597 for the three months ended June 27, 2025. The main drivers of the $6,995 increase between quarters were higher sales-volume related costs as well as increased variable compensation costs.
Operating expenses were $187,253 for the nine months ended July 3, 2026, compared to $166,984 for the nine months ended June 27, 2025. The main drivers of the $20,269 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.
Operating Profit/Loss
Operating profit on a consolidated basis for the three month period ended July 3, 2026 was $18,343, compared to $7,330 in the third quarter of the prior fiscal year. As discussed above, the improvement in operating profit between quarters was driven primarily by the receipt of the IEEPA tariff refunds offset in part by the impact of higher operating expenses.
Operating profit on a consolidated basis for the nine month period ended July 3, 2026 was $25,780, compared to an operating loss of $8,008 in the prior year to date period. As discussed above, the improvement in operating profit (loss) was driven primarily by the receipt of the IEEPA tariff refunds in addition to an increase in sales between periods.
Interest
Interest expense was $50 and $49 for the three months ended July 3, 2026 and June 27, 2025, respectively, and $155 and $164 for the nine months ended July 3, 2026 and June 27, 2025, respectively.
Interest income was $1,199 and $927 for the three months ended July 3, 2026 and June 27, 2025, respectively, and $3,151 and $2,585 for the nine months ended July 3, 2026 and June 27, 2025, respectively. The current year quarter and year-to-date periods include $310 of interest income received on IEEPA tariff refunds.
Other Expense (Income), net
Other income was $3,778 for the three months ended July 3, 2026 compared to $2,292 in the prior year period. The main drivers of the $1,486 increase period over period was a $913 increase in net investment gains and earnings on the assets related
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JOHNSON OUTDOORS INC.
to the Company's non-qualified deferred compensation plan in the current year quarter, entirely offset as an increase to operating expense between the same quarters. Additionally, for the three months ended July 3, 2026, foreign currency exchange gains were $465 compared to foreign currency exchange losses of $457 for the three months ended June 27, 2025.
Other income was $3,446 for the nine months ended July 3, 2026 compared to $1,318 in the prior year period. The $2,128 increase was primarily attributable to a $1,552 increase 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 an increase to operating expense between the same periods. Additionally, foreign currency exchange gains were $592 for the nine months ended July 3, 2026, compared to foreign currency exchange losses of $274 for the nine months ended June 27, 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 $8,322 and $11,165, respectively, in the three and nine month periods ended July 3, 2026 which equated to an effective tax rate of 35.8% and 34.7%, respectively. The effective tax rate was impacted by the IEEPA tariff refunds, discussed above, which increased income in the U.S. and overall income tax expense during the period. The Company recorded an expense of $2,758 during the three months ended June 27, 2025, which equated to an effective tax rate of 26.3%. The Company recorded expense of $975 during the nine months ended June 27, 2025, which equated to an effective tax rate of (22.8)%.
Net Income/Loss
Net income for the three months ended July 3, 2026 was $14,948, or $1.42 per diluted common class A and B share, compared to $7,742, or $0.75 per diluted common class A and B share, for the third quarter of the prior fiscal year.
Net income for the nine months ended July 3, 2026 was $21,057, or $2.00 per diluted common class A and B share, compared to net loss of $5,244, or $0.52 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 $175,245 as of July 3, 2026, compared to $161,022 as of June 27, 2025. The Company's debt to total capitalization ratio was 0% as of July 3, 2026 and June 27, 2025. The Company's total debt balance was $0 as of each of July 3, 2026 and June 27, 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 $76,414 as of July 3, 2026, a decrease of $5,579 compared to $81,993 as of June 27, 2025. Inventories were $188,263 as of July 3, 2026, an increase of $24,531, compared to $163,732 as of June 27, 2025. The increase in inventory balances was primarily the result of increased costs and a strategic ramp-up of inventory and safety stock in response to higher sales volumes experienced period over period. Accounts payable were $53,192 at July 3, 2026 compared to $43,478 as of June 27, 2025. The increase of $9,714 is consistent with the increase in inventory between periods.
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:
Nine months ended
(thousands) July 3,
2026 		June 27,
2025
Cash provided by/(used) for:
Operating activities $ 26,994 $ 32,810
Investing activities (16,329) (10,002)
Financing activities (10,317) (10,142)
Effect of foreign currency rate changes on cash (1,502) 527
(Decrease) increase in cash and cash equivalents $ (1,154) $ 13,193
Operating Activities
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JOHNSON OUTDOORS INC.
Cash provided by operations totaled $26,994 for the nine months ended July 3, 2026 compared to $32,810 during the corresponding period of the prior fiscal year. The decrease in cash provided by operations over the prior year nine 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 $15,015 for the nine month period ended July 3, 2026 compared to $15,299 for the corresponding period of the prior year.
Investing Activities
Cash used for investing activities totaled $16,329 for the nine months ended July 3, 2026 compared to $10,002 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 $14,021. Capital expenditures were $16,350 in the nine months ended July 3, 2026, compared to $11,826 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 $10,317 for the nine months ended July 3, 2026 compared to $10,142 for the nine month period ended June 27, 2025 and represents the payment of dividends and purchase of treasury stock for both periods. The Company had no debt during either nine month period ended July 3, 2026 and June 27, 2025. See Note 11 "Indebtedness" to the accompanying Condensed Consolidated Financial Statements for additional information on our credit facilities.
As of July 3, 2026 the Company held approximately $69,226 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 July 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 July 3, 2026 and June 27, 2025, respectively.
The Company has no other off-balance sheet arrangements.
Critical Accounting Policies and Estimates
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 nine months ended July 3, 2026.
Johnson Outdoors Inc. published this content on August 07, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 07, 2026 at 16:07 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]