Johnson Outdoors suffered from the poor U.S. economy in its third quarter, with sales down by 5.8 percent to $141.2 million. The third quarter is the most important of the fiscal year for the company, as it is when customers buy equipment for boating, diving and the outdoors for the summer. But this year the beginning of the period was when customers in the U.S. really started to scale back because of economic concerns, curbing spending.
Johnson’s watercraft sales were down by 4.9 percent to $34.6 million; sales in the outdoor segment dropped by 0.6 percent to $17.1 million; and revenues from marine electronics dropped by 12.1 percent to $62.4 million. The diving segment, strong in Europe, was the only one that grew, with a sales increase of 7.0 percent, but that was largely because of foreign currency exchange rates.
The gross margin declined by 3.1 percentage points to 39.5 percent, and net income for the company was down by 4.8 percent to $7.8 million. Inventories were 15.2 percent greater than in the same period last year.
Though its brands are apparently outperforming the competition, Johnson Outdoors has already shortened workweeks, cut shifts and staffing, and worked to slash prices to reduce inventory. Decreases in production as well as executive compensation will probably remain in force through the rest of the fiscal year.
