JOUT - Johnson Outdoor posts strong quarter as fishing business recovers

Johnson Outdoor ( NASDAQ: JOUT ) reported sales rose 18% in Q3 to  $196.4M as supply availability in the fishing business started to improve.

Operating profit declined slightly to $13.3M from $13.6M a year ago. The company's gross margin rate was down 6 basis points from the prior year quarter due primarily to increased material costs and inventory reserves. Operating expenses remained consistent year over year despite higher sales volumes due in large part to lower warranty and bad debt expenses. Net income for the quarter was $9.7M vs. $6.9M a year ago.

For the full year, JOUT said fishing revenue declined by 5% driven primarily by ongoing supply chain disruptions that slowed its ability to complete and ship finished goods Camping revenue grew 12% due to higher sales in both Jetboil and Eureka product categories. Watercraft recreation sales were up 2% due to continued high demand for the Sportsman line. Diving sales rose 14% from the prior fiscal year, as several regions of the world reopened and tourism increased.

CEO update: "Our balance sheet and healthy cash position continue to provide us with the flexibility and resources necessary to invest in strategic opportunities to strengthen the business, while consistently paying dividends to shareholders."

Shares of JOUT moved up 1.85% in premarket trading following the earnings report.

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