Johnson Outdoors second quarter sales damped by higher expenses

Freeman Staff

May 8, 2015

RACINE - Johnson Outdoors inc. reported Friday that its sales grew 7 percent in the second quarter, but that they were negatively affected by higher expenses.

The Racine company is a leading outdoor recreation equipment company.

“Topline performance is clearly benefitting from the diversity of our portfolio, with Minn Kota proving once again to be a formidable engine of growth. Likewise, continued efforts to strengthen performance in watercraft and consumer camping brands are having a positive impact. At the same time, we are working hard to address the complexity of challenges facing Diving, our most global business, and expect progress to occur over time. Our ongoing focus on innovative new products provides our brands a distinct advantage heading into the warm-weather season,” said Helen Johnson-Leipold, chairman and CEO, in a statement.

Net sales were $133.1 million in the second quarter, a 7 percent increase compared with $124.3 million in the prior year fiscal quarter, driven by revenue gains in three of the company’s business units. Foreign currency translation had a 2 percent negative impact on revenue. According to the announcement, key drivers behind the year-over-year comparison in each business unit were:

* Marine Electronics sales jumped 9 percent driven by strong growth in the Minn Kota brand.

* Watercraft sales rose 5 percent due to favorable response to new products.

* Outdoor Gear revenue advanced 11 percent on the improved performance of consumer camping, particularly the Jetboil brand.

* Diving revenue slipped 3 percent due to unfavorable currency translation.

Total company operating profit was $7.6 million versus $11.5 million in the previous fiscal year quarter, according to Johnson Outdoors.

www.johnsonoutdoors.com