Johnson Outdoors Inc.

What they do

Johnson Outdoors designs and markets seasonal outdoor recreation products under Minn Kota and Cannon (trolling motors, shallow-water anchors, downriggers), Humminbird (sonar and GPS), Jetboil (portable cooking), Old Town and Carlisle (canoes, kayaks, paddles, personal flotation devices) and SCUBAPRO (diving equipment). It manufactures at owned facilities in Mankato, Minnesota; Eufaula, Alabama; Alpharetta, Georgia; Old Town, Maine; and in Italy, Indonesia and South Africa, with other products sourced from third parties in North America and Asia. Products sell mainly in North America through outdoor specialty retailers such as Bass Pro Shops and Scheels, distributors, OEM boat builders such as Tracker, Skeeter and Ranger, and direct-to-consumer brand websites, with international sales through independent distributors.

Revenue drivers

• Fishing — Largest segment at $459.2 million, or 78 percent of fiscal 2025 net sales, selling Minn Kota motors and anchors, Humminbird sonar/GPS and Cannon downriggers through specialty retail, distributors, OEM boat brands and direct websites; fiscal 2025 operating profit was $19.6 million.
• Camping & Watercraft Recreation — Second segment at $58.1 million, or about 10 percent of fiscal 2025 net sales, covering Jetboil cooking systems plus Old Town canoes, kayaks and accessories and Carlisle paddles sold through specialty and outdoor chain retailers; fiscal 2025 operating profit was $0.9 million after the prior-year exit of the Eureka! brand.
• Diving — SCUBAPRO regulators, buoyancy compensators, dive computers, wetsuits and snorkeling gear generated $75.5 million, or about 13 percent of fiscal 2025 net sales, with fiscal 2025 operating profit of $1.7 million; manufacturing and assembly are in Italy, Indonesia and South Africa.
• Other / Eliminations — A non-revenue reporting line that carried $38.3 million of fiscal 2025 operating loss, reflecting unallocated corporate costs not charged to the three reporting segments.

Recent performance

In the fiscal third quarter ended July 3, 2026, total net sales rose 5 percent to $189.7 million from $180.7 million, with Fishing up 7 percent on Minn Kota strength and pricing, Diving up 10 percent on regulators and buoyancy compensators, and Camping & Watercraft Recreation down 13 percent on weak marketplace conditions. Third-quarter gross margin improved to 45.3 percent from 37.6 percent, helped by about $15 million of tariff refunds, and operating income rose to $18.3 million from $7.3 million. Net income was $14.9 million, or $1.42 per diluted share, versus $7.7 million, or $0.75 per diluted share, with an effective tax rate of 35.8 percent. For the first nine months of fiscal 2026, net sales were $525.1 million, up 15.0 percent, gross margin was 40.6 percent versus 34.8 percent, and net income was $21.1 million, or $2.00 per diluted share, compared with a net loss of $5.2 million, or $0.52 per diluted share. Cash and short-term investments were $175.2 million at July 3, 2026, up $14.2 million year over year, with no long-term debt on the balance sheet.

Strategy

Management says it is focused on advancing strategic priorities, strengthening competitive position and making investments to support long-term growth, while acknowledging uncertain macroeconomic conditions. Its stated operating model is innovation-led product development, strong marketing and efficient distribution, with best practices and synergies shared across subsidiaries under a plan set by executive management and approved by the Board. The company exited the Eureka! brand and completed remaining inventory sales in the first quarter of fiscal 2025, and recent growth has come from new product introductions in Fishing and Jetboil. Capital spending was $16.4 million in the June 2026 quarter versus $11.8 million a year earlier, and the Board approved a quarterly cash dividend payable July 30, 2026. Inventory was increased year over year to support sales demand, which management says it continues to manage closely.

Risks

• Dependence on new products — The 10-K states that sales and profitability depend on continuing to conceive, design and market new products and on market acceptance, and that rapidly changing consumer preferences make demand hard to predict.
• Intellectual property litigation — The company says the industry is susceptible to patent, trademark and other IP claims, which would be costly and disruptive even if meritless and could allow competitors to develop competing products.
• Tariffs and trade policy — The CFO said tariff policies continue to evolve and the company remains cautious about the cost outlook; fiscal 2025 tariffs were largely capitalized on the balance sheet, and roughly $15 million of tariff refunds benefited the June 2026 quarter, a non-recurring item.
• Concentrated Fishing segment — Fishing produced $459.2 million, about 78 percent, of fiscal 2025 net sales, and a $8.1 million prior-year goodwill write-off in the segment shows how sensitive results are to that single business.

Outlook

Management said macroeconomic conditions remain uncertain but that it continues to focus on strategic priorities, competitive position and investments for long-term growth. The CFO said the company is cautious about costs as tariff policies evolve and is monitoring developments closely. The company also said it increased inventory to position the business to support sales demand and remains confident in its inventory management processes.