JOUT - Earnings call transcript Q3 2024

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Operator

Hello, everyone, and welcome to the Johnson Outdoors Third Quarter 2024 Earnings Conference Call. Today's call will be led by Helen Johnson-Leipold, Johnson Outdoor Chairman and Chief Executive Officer. Also on the call is David Johnson, Vice President and Chief Financial Officer. [Operator Instructions] This call is being recorded.

Your participation implies consent to our recording this call.

agree terms, not the drop do line. you on simply these off If like call turn Penman would to I now the Outdoors. from over Johnson Pat to Please go ahead, Ms. Penman.

Patricia Penman

our you Good XXXX the Quarter. joining and you. Third Johnson thank Thank us results morning, fiscal for discussion for of Outdoors' for

guaranteed are If a this of beyond forward-looking need also to today's listed with press you release a -- number are and that copy on Outdoors' news available Actual the contain not to from it in is made I you our our Securities many Investor website of statements factors, risks use guarantees Relations. call those basis need Johnson events conference materially statements. These may include may filings differ Commission. assumptions of due and control. on and at performance. Exchange statements of and our release, johnsonoutdoors.com those the under remind current These future uncertainties and

additional call, to Helen have now turn over call you myself. please the my pleasure following is or Johnson any Johnson-Leipold. It If Dave to contact questions the

Helen Johnson-Leipold

profit quarter. of year million of the Pat. year's million X-month our performance, approximately share compared a loss $XX.X everyone, fiscal third $XXX and thank decreased perspective million to begin prior by in in third prior reported review, take then last you and declined XXXX Thanks, more business. for quarter and addressing company Dave our in financial third Good an will compared $XXX.X the questions. Sales to the and company detailed for giving an joining period. outlook quarter. fiscal to us. sales operating I'll quarter results ending we'll your for year the morning, X% I'll of their XX% $XXX,XXX over provide June then The operating third Year-to-date,

or period. loss $XX.X total the Net For for versus the company the $XXX,XXX million was year-to-date $XX.X of during $X.X period diluted share $X.X $X.XX profit operating diluted per previous share prior in million third period. million fiscal million X-month to prior $X.XX million third or year-to-date an Net diluted quarter diluted in fiscal or share year's declined operating per approximately $X.XX the period, income income to or share was year-to-date per compared the versus $X.XX quarter. $XX.X for the

increase tough promotional quarter. Consumer for required outdoor Continued market results demand across activity. the products in peak of down significantly soft The impacted recreation the remain significantly investment marketplace conditions categories our and for our our all through depressed season. to us demand

demand. as our hard we progress and redeploy As normal strengthening in to the outdoor well remains of enable Improving our challenging we marketplace improve lower to the well operations be working start future. out. reduce more financial as operate this aspects been been by working a has profitability positioned consumer even to resilient once evaluating conditions and levels, environment, the resources that all will our We've continue limited long to over focus attractive area. We've results term recreation do to critical is brands to been business believe and the although growth inventory to for business the

cost cost our additional our opportunities. expanding actions and structure evaluating for savings efficiency are We

performance. our these While a efforts, work margins some boost do have to more seen to improve from and we progress we have financial lot our

key success to pipeline we continues work of we will deliver to products we our costs initiatives of in the outdoor where across technology always experience and be our as and in strategic a that the products pace. been Innovation at e-commerce consumer-focused efficiency drive mission-critical working innovation, growth, and rapid recreation including a all and new categories possible, on imperative as to priority, increase marketplace that has success. and capabilities. has outdoor been a best changing reduce invest Creating As an to possible are to to drive digital winning

points digital research provides purchase Enhancing brands e-commerce touch presence our from our as is and support. for to capability our to one post-purchase key product consumer key priority online

important in future e-commerce digital investment of and our Our and brands sophistication of to is the businesses. all

are contributor will this confident be We accelerating our in meaningful profitability. a growth to

growth. While that improve investing good the rating about this We performance the hard long-term opportunity will we for future. committed are of the to position in and see business, investments these financial are and to benefits from fiscal our year initiatives we'll that are revenue working is challenging, in our brands and long-term we confident feel

the turn for to I'll over the financials. Dave Now on call more details

David Johnson

Thank in the you, from investment as Profits volumes by I impacted Good quarter. promotional wanted as morning, everyone. highlight third items activity. to well the ongoing sales few Helen. were in lower quarter a

versus savings While we're overhead sales or lower expenses spending, the primarily quarter year and and by product offset absorption quarters. Operating advertising to gaining this efficiency was by our million increased X% benefits cost between in prior promotional partially increased lower offset operations, due mix. volume $X.X and

cost critical more levels, our although are financial lower We'll update profile. our savings of we all has the you on that working hard consumer to demand normal mentioned, reduce aspects inventory quarter. progress. efforts back business progress been hindered improve expanding our across Helen We've our As we to next as it's

last was $XX June down $XX $XXX June year's March. balance and from about of million from million as quarter inventory QX Our down million,

balance the year. We through the of expect inventory fiscal some reductions

long-term us consistently deliver have dividends in sheet shareholders. enables cash value no ability to strengthen balance confident and business. out to invest position debt our opportunities Our our cash to the pay to remain continues and our We to with in

the Q&A for turn I'll operator the to session. over call Operator? the Now

Operator

[Operator Instructions]

comes the of line question Anthony Our Sidoti. of from first

Anthony Lebiedzinski

you quarterly was Can a the know comment on sales volumes touched that Dave, So about quarter. in the decline? I also impacting pricing, the sales factor whether lower you

David Johnson

really, In we've the in marketplace. that, discounting some not done

position in shore the have our offset So marketplace. increases, up we've if price been we've discounting done the taken by to

Anthony Lebiedzinski

Understood.

operating increased what and activity Okay. the And impact for then of was promotional expenses? advertising spending

David Johnson

It's for promo got last quarter, quarter. -- $X.X the versus increased number. year's Adam million Yes, that I've about

Anthony Lebiedzinski

Got Okay. you.

Okay. That's helpful, okay.

your at as as Okay. of then we How just as being replenishments? as should what's also think And you sense that is with Are going far inventory that? far about there? what careful seeing retailers more on retail, levels

Helen Johnson-Leipold

is pretty better, end think inventory still our conservative and but the we of trying purchasing level retail retailers things getting situation the a of see I going being inventory to very maintain on forward. conservative

Anthony Lebiedzinski

Understood.

more do planning terms you in just efficiencies? June else what in about far? quarter? can about little What then the that also cost of was And cost have the -- taken that Okay. you impact And of a actions savings the bit talk to are you so

David Johnson

fruit focus with the Yes. us. good. volume. has the operations over year getting of the that's the help historically efficiencies on I this has It been offset borne been we're mean, of lower some factories that, and some seeing the issues It's for and absorption out

us. margin it's everywhere and continue to So of for We're to successful us. further even find across forward, to in efficiencies going going and for the going drive been and try we're what's invest to that, board to we kind important that look more try while

Anthony Lebiedzinski

the focus know you in It as good. pipeline give better reasons, new of or as that recently for I you in the greater a just of innovation. 'XX. last the investing you've profit-generating new maybe me I in as -- far sounds fiscal many too any about you sure know you shape And want revenue activities. like guess for you sounds strong that drive do what That in don't have seen the and magnitude to competitive I like products. Can do us other about but discuss as far looking on kind question talked I'm as talk like here introductions, to always can some to Okay. sense that product things line is then you've is, you're what to maybe details, had top to be of than things

Helen Johnson-Leipold

give future lever don't on related is our innovation key details, focus We of area ourselves. products. and the to differentiate really But to new obviously, been a whole has the

some has motivations, is market the for different think which It's the consumer door up different and opens because needs innovation. think, I I the -- positive, got changed.

to going ability be going right I all the there good been feel with good feel about leadership say the that's and to So consumer the the key we and new to our to understand about our key And it's term in can forward. be our long products. is past and

Operator

you. questions closing turn I'm Johnson-Leipold no to at now Thank further showing this I like Helen time. it remarks. to would for back

Helen Johnson-Leipold

great hope Thank joining rest of you. today. us you Thank a day. the has everybody for I

Operator

Thank you does This for conference. today's conclude the participation program. in your

disconnect. now may You

Johnson Outdoors (JOUT) 5 Aug 242024 Q3 Earnings call transcript