Johnson Outdoors reported double-digit growth in sales for its third fiscal quarter ended June 30. Strong demand for new products drove significantly higher volumes and a nearly three-fold increase in net income compared with the year-ago quarter.
Revenues jumped by 11.0 percent to $155.3 million in the quarter. They were boosted by higher sales of fishing and diving products, especially from the Minn Kota, Humminbird, Cannon, Scubapro and Jetboil brands.
The management attributed the progress to a continued focus on innovation, particularly in fishing and diving. Jetboil's new flux-ring technology and the Predator series of fishing boats by Old Town have helped the company grow market share in the challenging camping and watercraft recreation markets, the management added.
However, the camping segment registered an 8.2 percent sales decrease to $12.1 million, as growth at Jetboil could not offset declines in tent sales resulting from the restructuring of the retailer sector across the camping market. Still, the segment's operating profit improved slightly to $1,452,000.
Sales of recreational watercraft products were also lackluster, falling by 10.2 percent to $17.3 million, weighed down by a sluggish kayak market.
On the other hand, revenues from the fishing business grew by 18.1 percent to $103,974, driven by strong demand for new products under the Minn Kota and Humminbird brands. New products this year accounted for about 60.0 percent of the entire product offering in this segment.
Strong positive momentum for innovations in buoyancy compensators and dive computers led to a 16.7 percent revenue increase to $22.0 million in the group's diving business, which turned around to an operating profit of $1.2 million from a loss of $6.2 million in the year-ago period.
The company's overall gross margin improved by 2.9 percentage points to 45.5 percent thanks to a favorable mix and improved efficiencies in all units. The operating profit grew by 82.1 percent to $24.7 million, and the net income of $16.5 million obtained for the period was 142 percent higher than in the corresponding quarter a year ago.
Johnson Outdoors said its focus and investments in the months to come will continue to revolve around three key strategic priorities - richer consumer insights, enhanced innovation processes and digital sophistication.