‘Harsh’ weather takes its toll at Johnson Outdoors
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The early onset of harsh weather conditions in the US has taken its toll on the first quarter fortunes of Johnson Outdoors with the company reporting a net loss of US$2.2 million.
The Racine, Wisconsin business saw its sales fall by 9.4% to US$79.1million for the three months ended December 27th, 2013.
“The outdoor recreational industry is highly seasonal and heavily influenced by weather conditions. Last year, the first quarter benefited from unusually early new product shipments, particularly in marine electronics,” said Helen Johnson-Leipold, Chairman and CEO. “This year, we once again have exciting new innovations across the portfolio, with demand strong and growing. However, the early onset of harsh weather conditions has shifted the timing of new product orders and shipments.
“As always, the battle for consumer discretionary dollars is fierce and challenging, but at this time, we remain optimistic in our ability to deliver against our 2015 financial targets focused on growing profits faster than sales.”
Sales during the first fiscal quarter are typically the lowest for the year as the company prepares for its primary selling period of its warm weather products during the second and third periods.
The company also revealed that revenue declined in marine electronics due to the year-over-year shift in the pacing of new product shipments and implementation of a new pricing-to-value strategy across the Humminbird family of products.
Watercraft sales reflected the anticipated decline in international sales resulting from the global restructuring, which the company says has been implemented to improve long-term profitability of the business.