Johnson Outdoors Q3 Results Down On Weak Demand
(RTTNews) - Johnson Outdoors Inc. (JOUT) reported Monday weak profit in its third quarter due to lower net sales and volumes amid the decreased demand.
The outdoor recreation equipment and technology company's net income in the third quarter was $1.62 million or $0.16 per share, down from last year's $14.80 million or $1.44 per share.
Total company operating loss was $0.51 million, compared to operating profit of $17.44 million in the prior year. Gross margin was 35.8 percent, compared to 41.5 percent in the prior year.
The decline in gross margin was primarily due to unfavorable overhead absorption as a result of lower sales volumes and changes in the product mix toward lower margin products.
Total Company net sales in the third quarter declined 8 percent to $172.47 million from $187.05 million in the prior year.
Helen Johnson-Leipold, Chairman and Chief Executive Officer, said, "Challenging marketplace conditions, primarily due to lower consumer demand for outdoor recreation products and heavy promotional activity, have impacted our performance. As a result, we are evaluating all aspects of the business to improve our financial results and are working to redeploy resources to enable growth for the future."
Johnson-Leipold further said, "While we are expanding our cost savings actions to boost our margins and continuing to work on reducing inventory levels, we are committed to investing in revenue and profit-generating initiatives in innovation and digital and ecommerce capabilities to position Johnson Outdoors for long-term marketplace success."
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