Sales slide at Johnson as group warns of more COVID-19 pain
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Stay-at-home orders across the US in light of the COVID-19 pandemic hit net sales in the second quarter at outdoor leisure products supplier Johnson Outdoors, and the group says it is braced for more pain in the next three months.
The company saw an 8% decrease in sales across its four sectors, including a decline of 3% to $134m in its Fishing Division and a sales fall of 38% at Watercraft Recreation, the latter largely due to COVID-19 impacts on production and demand. Total operating profit was $31.8m compared to $27.8m in the same comparable period last year.
The company has now resumed production and shipments at its North American operations following a temporary suspension during which its facilities were deep-cleaned and sanitised and strict operating procedures and protocols put into place.
“During this unsettling time, we are taking steps to protect the health and safety of our people and ensure the future of Johnson Outdoors. Government mandates in response to COVID-19 have overlapped with our prime selling season and the third quarter is expected to be significantly impacted as a result,” said Helen Leipold-Johnson, Chairman and Chief Executive Officer.
“However, as stay-at-home orders are lifted, Johnson Outdoors will be there, ready to help people have a great outdoor experience. Importantly, our unwavering commitment to building a thriving enterprise long-term remains stronger than ever.
“Now, as always, consumer-driven innovation will play a critical role in helping us overcome challenging times and emerge stronger and better positioned for the future.”
For the year to date, net sales were $291.1m, a 3% increase over last year’s first six months, driven by strong first quarter sales.