Johnson Outdoors — Fiscal Third Quarter 2026 Earnings Summary

Financial Performance

• Total company net sales for the third quarter ended July 3, 2026, increased 5% year-over-year to $189.7 million from $180.7 million.
• Year-to-date net sales for the nine-month period ended July 3, 2026, increased 15.0% to $525.1 million from $456.7 million.
• Third quarter operating income was $18.3 million, compared to $7.3 million in the prior year period.
• Year-to-date operating profit was $25.8 million, compared to an operating loss of $8.0 million in the prior year period.
• Gross margin improved to 45.3% in the third quarter from 37.6% in the prior year; year-to-date gross margin was 40.6% compared to 34.8%.
• Tariff refunds of approximately $15 million received during the third quarter contributed to margin improvement.
• Operating expenses increased $7.0 million in the third quarter and $20.3 million year-to-date, driven by higher sales-volume related costs, variable compensation costs, and professional services expenses.
• Profit before income taxes was $23.3 million for the quarter (vs. $10.5 million prior year) and $32.2 million year-to-date (vs. a loss of $4.3 million).
• Net income was $14.9 million ($1.42 per diluted share) for the quarter, compared to $7.7 million ($0.75 per diluted share) in the prior year; year-to-date net income was $21.1 million ($2.00 per diluted share) versus a net loss of $5.2 million ($0.52 per diluted share).
• Effective tax rate was 35.8% for the quarter (vs. 26.3%) and 34.7% year-to-date (vs. 22.8% in the prior year).
• Cash and short-term investments totaled $175.2 million as of July 3, 2026, an increase of $14.2 million from the prior year.
• Capital spending was $16.4 million in the current quarter compared to $11.8 million in the prior year quarter.
• Depreciation and amortization were $15.0 million for the nine-month period, compared to $15.3 million in the prior period.

Business Segments and Product Lines

• Fishing revenue increased 7% in the third quarter, driven by strength in Minn Kota and pricing actions.
• Diving sales increased 10% in the third quarter, driven by strong sales in regulators and buoyancy compensator devices.
• Camping & Watercraft Recreation sales declined 13% in the third quarter, primarily due to weak marketplace conditions.
• Fishing segment operating profit increased to $26.4 million for the quarter (from $14.6 million) and $52.6 million year-to-date (from $15.8 million).
• Diving segment operating profit increased to $3.3 million for the quarter (from $1.6 million) and $2.7 million year-to-date (from $0.3 million).
• Camping & Watercraft Recreation operating profit decreased to $1.1 million for the quarter (from $1.6 million) and $0.8 million year-to-date (from $2.2 million).

Management Commentary and Tone

• Chairman and CEO Helen Johnson-Leipold described results as "solid," citing the strength of market-leading brands despite uncertain macroeconomic conditions.
• Management stated a continued focus on advancing strategic priorities, strengthening competitive position, and making investments to support long-term growth.
• CFO Asad Rahman noted that approximately $15 million in tariff refunds were recognized, though benefits were partially offset by broader cost inflation and other expense increases.
• Management expressed caution regarding the outlook for costs as tariff policies evolve and stated they are monitoring developments closely.
• Management confirmed inventory levels increased compared to the prior year to support sales demand and expressed confidence in inventory management processes.

Other Key Points

• In May 2026, the Board of Directors approved a quarterly cash dividend to shareholders of record as of July 16, 2026, payable July 30, 2026.
• The company hosts a conference call and audio webcast on August 7, 2026, at 11:00 a.m. Eastern Time.
• The Safe Harbor Statement highlights risks including changes in economic conditions, consumer confidence, U.S. trade policies, tariffs, global disease outbreaks, litigation costs, and supply chain disruptions.
• The company operates across four categories: Watercraft Recreation, Fishing, Diving, and Camping, with iconic brands including Old Town, Minn Kota, SCUBAPRO, and Jetboil.