Johnson Outdoors Q3 results reveal significant cost of COVID-19 pandemic
Article Media Click images to enlarge +
US-based outdoor leisure products supplier, Johnson Outdoors, highlighted the significant impact of the COVID-19 pandemic on its business as it reported a 21.5% decline in revenue and 41.6% slump in profits in the third quarter of its financial year.
Helen Johnson-Leipold, Chairman and CEO of the award-winning ICAST exhibitor, told investors: “As expected the Coronavirus pandemic had a significant impact on the quarter. Strong momentum in fishing and watercraft recreation in May and June could not offset the impact on operations in April.
“Stay-at-home mandates hit during the heart of our primary selling season as many retailers were closed and consumers were restricted to essential-only activities. As these restrictions eased, we began to see high demand and growing participation in fishing, camping and watercraft recreation.
“Going forward our goal is to continue the positive momentum of our fishing, watercraft and camping brands through to the end of the year by leveraging increased interest in outdoor activities to the fullest.”
At the beginning of the third quarter Johnson Outdoors temporarily suspended some operations in some locations. When production and shipments resumed in its North American operations towards the end of April, the company began working under strict procedures and standards.
In Q3 total company sales declined 21.5% to $138.4m compared to $176.3m in the same comparable period last year. Operating profit was $12.9m compared to $28m in 2019. For the year to date net sales declined 6% to $429.5m (2019: $458.4m).
Johnson Outdoors emerged from the ICAST 2020 Online show with a string of awards, including winning its third Best in Show accolade in five years following the success of the Old Town Sportsman Autopilot.
The Hummminbird CoastMaster won the Best Electronics category – its ninth accolade in 10 years, while the Minn Kota brand took the Best Boating Accessory prize for its new Raptor Shallow Water Anchor.