Johnson Outdoors’ sales of outdoor equipment, including Silva compasses, Tech40 digital instruments and the Eureka! brand of tents, declined by 25.2 percent to $10.3 million in the second quarter ended April 1 due to delays in orders from the U.S. military resulting from the government’s budget restraint policies.
The group also suffered from subdued growth in revenues from diving equipment, up by 2.7 percent to $21.8 million. Solid growth for Scubapro and Subgear in the U.S. was offset in part by weak markets in Japan, Australia and the Middle East.
Total group sales nevertheless grew by 14.1 percent to $128.9 million, driven by a 27.1 percent rise to $79.9 million at the marine electronics division and an 11.8 percent increase to $18.1 million for the watercraft business.
The gross margin widened to 41.1 percent from 40.2 percent due to a favorable product mix in marine electronics and improved efficiencies. The operating profit increased by 41.8 percent to $11.4 million and net profits rose to $8.5 million from $6.2 million. The outdoor division booked an operating profit of $652,000 and the diving business an operating loss of $6,000.
The company said it remains on track to deliver an average annual growth of 5 percent for sales and 6 percent for the operating margin by the end of the 2012 fiscal year.