JOUT - Johnson Outdoors stock jumps 10% on earnings beat

2023-05-05 11:47:43 ET

Johnson Outdoors ( NASDAQ: JOUT ) stock surged to a double-digit percentage gain on Friday after flying past Q2 earnings expectations.

The Wisconsin-based outdoor recreation equipment and technology provider posted $1.45 in GAAP EPS to top consensus estimates by $0.61. Meanwhile, a 6.6% rise in revenue to $202.11M exceeded analyst expectations by $12.46M. Gross margin expanded 110 basis points year over year as supply chain issues eased in the quarter.

“Supply chain challenges have significantly improved, and we continue to work hard to fill customer orders in our Fishing business. Diving continues to benefit from an increase in travel. Conversely, our Camping and Watercraft Recreation businesses are experiencing softer markets as they stabilize after high growth experienced during the pandemic,” CEO Helen Johnson-Leipold commented. “Looking ahead, while we continue to monitor consumer demand and navigate uncertainties in the marketplace, we remain focused on sustaining innovation leadership for the growth and success of our brands.”

Inventories remained essentially stable year over year. However, management noted that current inventory levels remain above historical averages.

“We remain laser-focused on monitoring demand, evaluating our expense structure, and managing higher-than-normal inventory levels,” CFO David W. Johnson said. “Our debt-free balance sheet and healthy cash position continue to well-position us to navigate challenging market conditions and provide us with the flexibility and resources necessary to invest in strategic opportunities to strengthen the business and consistently pay dividends to shareholders.”

Shares of Johnson Outdoors ( JOUT ) jumped 11.45% higher during Friday’s trading.

Read more on the details of the earnings results .

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