Fishing division again leads way for Johnson Outdoors
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Fishing sales again played a key part in the improved figures reported this week by Johnson Outdoors for its second financial quarter.
The company said it faced challenges in its kayak and tent businesses, but still managed to show a slight increase on last year due to momentum in its fishing and diving segments. Net earnings for the period improved 1.4% to $21.9 million. Revenues grew by 7.2% to $177.7 million.
Fishing, which is by far the company’s largest segment, improved sales by 10.3% to $138.2 million. Operating profit for fishing grew 12.4 % to £34.6 million.
Chairman and CEO, Helen Johnson-Leipold, said new products continue to support growth in fishing: “So far this year, pre-season selling across our fishing brands continues to be strong.” New products included the Minn Kota One-Boat Network platform, the Minn Kota Down Imaging motor and the Solix and Helix Series of fishfinders.
In the Watercraft Recreation segment – which includes the Old Town and Ocean Kayak brands – sales for the quarter fell 8.9% to $9.85 million due to continued weakness in the kayak market. Operating loss widened to $516,000.
David Johnson, Vice President and CFO, said the company expects tariffs on Chinese goods to have an impact on profits of between $5 million and $7 million this fiscal year. It had previously expected to be in the region of $6 million to $9 million, but has been lowered following the grant of an exclusion on a component for products manufactured in the US.