Johnson Outdoors delivers 23% sales hike in first quarter
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Johnson Outdoors, the US-based outdoor leisure products manufacturer, saw its sales rise 23% in the first quarter of the financial year with all segments of the business – including Watercraft – showing solid gains.
The company said that the gains were helped by new products in the fishing division, which includes Humminbird, Cannon and Minn Kota, which saw sales climb by 26% to $99.3m. By far the largest segment of the business, its operating profits rose 31.5% to $15m.
Johnson Watercraft, which includes Old Town canoes and kayaks, recorded an 11.1% increase in sales to $4.8m. Operating losses increased slightly to $1.56m from $1.49m.
“The Watercraft business is gaining share in the growing fishing kayak sector as innovations, such as the new Topwater 120 PDL, are seeing good consumer response,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “Digital investments and e-commerce are also supporting the business with e-commerce sales off to a solid start.
“We will continue to invest in consumer insight-driven innovation, enhanced digital marketing and e-commerce to strengthen Watercraft Recreation and create a sustainable, profitable business for the future.”
Group revenues reached $128.1m compared to $104.4m for the same period last year.
As a result of the recent negotiations between the US and China – as well as the company’s own mitigation efforts – Johnson Outdoors now expects the impact of tariffs to be in the range of $4m to $5m for 2020, down from $5m to $6m previously.