RACINE, Wis. - Johnson Outdoors Inc. (NASDAQ:JOUT) reported third-quarter earnings that fell short of analyst expectations, as challenging market conditions and lower consumer demand impacted results.
The outdoor recreation equipment maker posted earnings per share of $0.16 for the quarter ended June 28, missing the analyst estimate of $0.57. Revenue declined 8% year-over-year to $172.5 million, below the consensus forecast of $189.61 million.
Johnson Outdoors cited "challenging marketplace conditions, primarily due to lower consumer demand for outdoor recreation products and heavy promotional activity" as factors impacting performance. The company's gross margin contracted to 35.8% from 41.5% a year earlier, mainly due to unfavorable overhead absorption from lower sales volumes.
"While we are expanding our cost savings actions to boost our margins and continuing to work on reducing inventory levels, we are committed to investing in revenue and profit-generating initiatives in innovation and digital and ecommerce capabilities to position Johnson Outdoors for long-term marketplace success," said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
The company reported an operating loss of $0.5 million for the quarter, compared to an operating profit of $17.4 million in the prior year period. Net income fell to $1.6 million from $14.8 million a year ago.
Looking ahead, Johnson Outdoors said it is "evaluating all aspects of the business to improve our financial results" while working to redeploy resources for future growth. The company maintained its quarterly dividend and highlighted its debt-free balance sheet as enabling continued investment in strategic priorities.
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