Johnson Outdoors Q2 Revenue Rises 16% to $194.5M, Net Income $9.4M
Johnson Outdoors’ Q2 net sales rose 16% to $194.5M, driving operating income to $10.3M and net income to $9.4M (EPS $0.89 versus $0.22). Gross margin widened to 38.8% from 35.0%, with Fishing up 18%, Diving up 9%, Camping & Watercraft up 1%, as operating expenses rose $11.2M on volume costs.
1. Second Fiscal Quarter Results
Johnson Outdoors reported Q2 net sales of $194.5 million, a 16% increase over prior-year sales of $168.3 million. Operating income more than doubled to $10.3 million from $4.9 million, while net income jumped to $9.4 million, or $0.89 per diluted share, compared with $2.3 million, or $0.22 per diluted share.
2. Performance by Business Segment
Fishing revenue grew 18% driven by improved trade conditions, stronger market position and pricing actions. Diving sales rose 9% on better market conditions and ecommerce growth, while Camping & Watercraft Recreation sales increased 1%, primarily from higher online sales.
3. Margin Expansion and Expense Trends
Gross margin expanded to 38.8% from 35.0%, aided by improved overhead absorption and cost savings. Operating expenses increased by $11.2 million to $65.1 million, reflecting higher sales-volume-related costs and variable compensation, and the effective tax rate fell to 7.8% from 44.6%.
4. Year-to-Date Results and Financial Position
Through six months, net sales reached $335.4 million, up 21.5%, with operating income of $7.4 million versus a prior-year loss of $15.3 million. Year-to-date net income was $6.1 million versus a $13.0 million loss, cash and short-term investments stood at $107.9 million, capex totaled $10.5 million, and a quarterly dividend was declared.