PHOTO COURTESY JOHNSON OUTDOORSJohnson Outdoors yesterday announced its results for the third fiscal quarter.
The recreational equipment company reported net sales of $172.5 million for the quarter, an 8% decline from $187 million a year prior.
Total operating loss was $500,000 versus a profit of $17.4 million year-over-year. Gross margin was 35.8%, compared with 41.5% in the prior-year quarter. The company said the declines were primarily due to unfavorable overhead absorption because of lower sales volumes and changes in the product mix.
“Challenging marketplace conditions, primarily due to lower consumer demand for outdoor recreation products and heavy promotional activity, have impacted our performance,” chairman and executive officer Helen Johnson-Leipold said in a statement. “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 e-commerce capabilities to boost Johnson Outdoors for long-term marketplace success.”
Johnson-Leipold added that “the company’s debt-free balance sheet and cash position continue to enable us to invest in strategic priorities to strengthen our brands and the business.”
Operating expenses of $62.3 million were an increase of $2.2 million year-over-year, due primarily to increased advertising and promotional spending. Profit before income taxes was $900,000, compared with $19.8 million a year prior.
Year-to-date, net sales were $487 million, a 14% decrease year-over-year. Total loss declined to $700,000, compared with profit of $34.3 million in the prior fiscal year. Gross margin decreased to 36.2% versus 38% last year. Through June 28, operating expenses were $176.8 million, a decrease of $4.6 million year-over-year.
