Strong demand for fishing, camping and watercraft recreation products drove significantly higher sales and profits for Johnson Outdoors’ fiscal fourth quarter. The management said that the demand picked up in the second half of the year after a difficult second quarter, at the onset of the pandemic. After lockdowns eased, it saw demand ramp up and participation grow in fishing, camping and watercraft recreation. This positive late-season momentum resulted in a strong finish to the company’s financial year.
In Johnson Outdoors’ fourth quarter, ended on Oct. 2 - when the outdoor recreation industry is typically in quiet mode and sales are historically lower - revenues surged by 58 percent to $164.7 million. The gross margin remained flat at 44.7 percent, as reduced efficiencies linked to Covid-19 restrictions were offset by an improved product mix and higher prices. Net income reached $15.5 million, versus $3.3 million in the previous year’s fourth quarter.
The diving segment, which the group is trying to strengthen, saw sales decline by 5 percent to $20.4 million. This resulted in a $0.6 million operating profit, compared with $0.9 million last year. The management said travel restrictions limited accessibility to diving.
Revenues from the fishing segment soared by 70 percent to $113.9 million, while its operating income reached $24.6 million, up from $8.4 million for the year-ago quarter. There was continued demand for new and legacy technologies in Minn Kota and Humminbird.
The camping division, which includes brands such as Jetboil and Eureka, saw sales jump by 51 percent to $15.5 million. Here, the operating income was $2.8 million, compared with $0.8 million for the same quarter last year. The company recorded higher sales for both Jetboil and Eureka, offset in part by a decrease in military tent sales.
Watercraft sales more than doubled to $15.7 million, leading to an operating profit of $1.7 million, versus a loss of $1.2 million last year.
For the full year, Johnson Outdoors’ revenues grew by 6 percent from the prior year to $594.2 million, with a 9 percent increase in fishing, a 25 percent gain in watercraft recreation and a 3 percent rise in camping. However, global pandemic-related travel restrictions weighed on diving revenues, which were off by 20 percent. The gross margin remained steady at 44.6 percent, as improved cost absorption through higher volumes and a strong product mix helped offset a $1.0 million increase in tariff costs. Net income for the fiscal year improved by 7 percent to $55.2 million.
Among the highlights of the year, the company received two awards at the 2020 ICAST, the world’s largest fishing event, for the new Humminbird CoastMaster charting technology and the new Minn Kota Raptor shallow water anchor.
