JOUT - Earnings call transcript Q4 2024

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Operator

Hello, everyone, and welcome to the Johnson Outdoors' Fourth 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.

to of consent call. implies participation our this recording Your

terms, agree off If not these simply you do to drop the line.

I call over Outdoors. to turn Penman like Ms. Johnson ahead, Please would from go to now Pat Penman. the

Patricia Penman

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

Investor you our website on need is it available a If johnsonoutdoors.com copy Relations. under release, of today's news at

statements. differ Outdoors' These I our and and call forward-looking filings also guarantees may need number Johnson may basis Actual control. a These Exchange the to with the that risks remind assumptions performance. press release Securities events not views are include conference this statements statements of to from you in are of materially and current and due on listed future made beyond of factors, Commission. contain our many uncertainties those those and

additional myself. have you questions contact call, please If Johnson the or following Dave

pleasure call It now over turn Johnson-Leipold. my is Helen to to the

Helen Johnson-Leipold

Pat. you questions. and the addressing quarter everyone. some our in Dave financials, us. cover tough to and take performance, we'll year-end address and joining Thank rehash announcement. I'll plan year. then will for morning, fiscal was XXXX earnings by future a our key begin I challenges. fourth I'll won't it then your Thanks, Good numbers share our Obviously,

competitive conditions marketplace and significantly pressures impacted XXXX challenging Continued fiscal our performance.

of across businesses products demand soft. all our for recreation outdoor Consumer remained

strategy efficiencies are enable been away leaning strategic our aggressively for priorities, our While critical we're indicators businesses. challenging and to and soon, anytime into not seeing operational have we growth these go-to-market going future brands that our conditions innovation,

more innovation marketplace, on strong critical. outdoor our competitive recreation cannot highly this In focus be

approach. we including talent innovation to are our strengthening As elements, technologies investing and next the in a our and as consumer-centric key the as critical approach well level innovation result, taking

to categories. requires ever-evolving Our the across digital all focus our possible us best front do to of stay engage delivering experiences and things consumers. of The in remains on differently landscape outdoor our

consumer to support. points the our confident will investments enhance contributor to key profitability. Our to research in online be for drive to and from post-purchase provides and go we we're capabilities growth, product our to brands this presence market way accelerating touch our sales We've a been restructuring meaningful making purchase and

masked business mentioned I and to cost as be quarters, we our more The Lastly, worked previous results, focus recognize and against resources do. were priorities. to profitability operations savings areas. important our our improving to drive operational strengthening strategic and by in there hard cost is We've redeploy efforts savings continue work

been Fiscal XXXX times is tough, but before. tough we've through

lot are a strategic working from committed these also investments that have investing brands performance. hard for will We to of that growth the see do, but financial know in to work priorities the we're confident we long-term to in while future. our our improve we'll position We benefits

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

David Johnson

for wanted morning, Good XXXX, by highlighting important areas. to the everyone. of X start Helen. fiscal results you, challenging our Thank I midst In

debt-free, to remains competitive today's enables which mission-critical and is marketplace invest sheet advantage First balance us a Helen of priorities all, our discussed. strategic strong just in in

been quarterly mentioned manage hard higher-than-normal we've on Second, working levels. inventory as previously I've our to calls,

flow were quarter. 'XX. fiscal positive September million of fourth Our inventory inventory cash year's down prudent last generate balance from Through able as was in to operations million, about we $XX.X from $XXX.X management,

for December we shareholders. announced our Lastly, recent on dividend, meaningful we long-term continue X. our to dividend confident the to with to pay in our which create and remain We approving Board ability a plans most shareholders value

inventory mix fiscal the by numbers product was and toward in increased promotional changes quarter negatively the get year. increased from margin and pricing, let's impacted quarter in Now Gross the reserves. lower-margin of some products into fourth

of For gross about by not of X.X product mix. X the declined margin but and points about impact overhead unfavorable the Operational did absorption year, savings offset impacted cost fiscal margin gross unfavorable points. by fixed positively costs

$X.X increased due The $X.X was impairment million million professional and result expenses charge $XX.X primarily compensation in marketing versus of between prior operating million by the noncash For and million increase offset partially plan million, market incentive goodwill to year, bad deferred reserves, compensation a lower fiscal increased a the to the year, years. of $X.X a debt of severance fiscal higher of expense as service costs assets value. expenses increase $XX.X

business. Looking forward, the protecting to while we'll continue investments strengthen strategically structure cost our manage to

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

Operator

[Operator Anthony Instructions] of Our Sidoti. from first question line Lebiedzinski comes from the

Anthony Lebiedzinski

in first, X as in segments. up unit Can you versus of X inventory were at see quarter, far the fourth ASP? about talk So And out the the as you what your retail volumes sales level? levels

David Johnson

across good unit in there's last fourth And a because it's ASP but inventory increased quarter little terms seeing seeing -- Yes. of seeing quarter. in other it's we the the did mean of mixed we're I bit volume volumes, trade, obviously shape, terms a both. -- a we're as I unit pockets in fourth in lift of year's bag for quarter right we're mean was of a of really the well inventory, challenging retailers from quarter, the that's there. in inventory growth bit as Overall, some board year, now. kind of retail fourth the see in

very partners. still our they're So -- perspective and from trade cautious a

Anthony Lebiedzinski

you. Got

can Is any come maybe to far can you few expecting. So margin, that? wanted as way some I specifics far shift don't did you lower items, just I details. things quantify get share promotional reserves. as the Can than the out as any these I inventory their if lower-margin details there were way a how mix more of to impactful but you as or provide more called as about items, mean pricing, that -- provide to we're what more you gross in know there's

David Johnson

fourth a X.X -- I in for promotional Yes. point mean the was versus about impact roughly quarter. pricing year's Sure. fourth the pricing last quarter the decrease

So X points down were the we quarter. for

pricing and that. the promotional big the a Mix that So to quarter. pricing for of chunk comparable reduced fourth just was was

just had out the most X we a And inventory of decrease. of and So point. mix the there, of about that rest the reserves was lower

Anthony Lebiedzinski

differently terms I about pipeline strategy, could And That's in focus so Johnson then maybe of on But touch anything, the Outdoors been remember. key very what, on for you're your a as the factor helpful. innovation you of products? you of can as has long sort new if upcoming doing and talk can

Helen Johnson-Leipold

we terms behind hard But dedicated to do Well, -- good. lot good We've are it's approach getting types at really it we is some happening look those about putting it we year. And this research got and about actual we of launches about insights through. of We've helping and that driving of a in our in quantity, innovation, it's that taking quality. people are consumer and feel got a more not are resources area.

really So in got, solid our Rec XPLORE we've we've increase got success Live Water us are new that the which to better sure process year some competitive. It's our can Watercraft product, that Jetboil. launches we're are our and I got make make looking category. We've approaching for a this it way critical competition, and in entering us more at why But we for would of product We've Fishing that to launches. gets our -- got X say, got launches. in that's launches the We've business. MEGA and market that

Anthony Lebiedzinski

Got you.

you execute So strategy, do capabilities resources to you think to guys do have make for internal to strategy? that? the this Or for to appropriate an acquisition your execute you the you you think need improve

Helen Johnson-Leipold

always great has for and in have as critical are today, as consumer categories I matter plan us, the which . really leveraging the that understanding need to win and job is get we're the it's to the a we resources consumer innovation have a the for to do. But internal. and opportunity always looking can is, But we do to have and we changed, changing. looking do to well us. it's better, we we I think, Well, we think don't and external a problem of resources

Anthony Lebiedzinski

Understood.

Okay. And think savings results? And the What's about we savings -- opportunities? share on from the then cost you benefit in program? efficiencies, the cost terms operational how should about recent the of future more details can been

David Johnson

program X in our fiscal us materials into a benefit of had operational over factory, big launched areas the to those deliberate cost focused goods, efficiencies, about 'XX. that for scrap gross We it Yes. on. really for savings points of a reducing factories, cost we We've on driving fiscal the our drove 'XX. are we year very And down us fruit really ago, bore that and for margin on increasing worked rates, the logistics the X savings, the come

results. the by masked was it Unfortunately, that. with pleased we're So

forward also elimination expense savings the will expand us keep mean, expect We opportunities help we on program, did operational that. cost back to job quarter, operational just side down product things. a to and And costs. on with sourcing I of fourth the we to driving in working want which the going

place in to to effort. effort that continue plans got that we've So expand

Anthony Lebiedzinski

Got you.

Okay.

that severance So in the quarter? release, as the cost you fourth guys far as in press was the all cited that

David Johnson

fourth the basically quarter. all it's yes, Yes, in

Anthony Lebiedzinski

me. Okay. lastly guess I for And Got you.

So guys of you lot but a here, components. obviously, do the U.S. you guys predominantly are use in imported manufacturer

potential you think to what far from Just impact from a year? next wanted as you as the sense get about coming tariffs

David Johnson

we've definitely mitigate had our could the preliminary to got we've Yes. could and discussions I on ways ear what we that, ground happen. on that mean

been some So strategies come yes, mitigation on before, we obviously, but had this and that. we've to through before, more

Operator

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

Helen Johnson-Leipold

to you. a want today, thank us Thank happy just I everybody everyone I holiday. hope joining for has and

Operator

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

now may disconnect. You

Johnson Outdoors (JOUT) 10 Dec 242024 Q4 Earnings call transcript