JOUT - Earnings call transcript Q1 2025

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Operator

Hello, everyone, and welcome to the Johnson Outdoors' First Quarter 2025 Earnings Conference Call. Today's call will be led by Helen Johnson-Leipold, Johnson Outdoors 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.

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

Patricia Penman

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

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

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

Helen Johnson-Leipold

everyone. priorities Good Dave review us. well our take we'll the an Thanks, highlights, as I'll the quarter morning, sharing businesses. perspective Pat. for on you begin first on update then and as for performance Thank our strategic by joining financial will your questions.

retail channel environment trade and and to continue cautious challenges ongoing face pressures. a We with marketplace competitive

recreation one like some strategic not elements for we is efficiencies We're to we growth. are drivers, our outdoor and growth. on making soon driving we capability our on focused them. In reflect changes innovation of strengthening indicators As into competitive this We to and these results critical last operational the quarter key and the progress are conditions future it making on of leaning each as seeing the first that. are aggressively innovation, and our call, quarterly away marketplace, share necessary our our said these highly of inroads e-commerce going I'd anytime most during priorities, remain

business, Humminbird launched fishing so our build our not and shipping results. We're we've in enthusiasm our retail we excited products example, seen technology reflected in consumer These in new January well. with start and to recently beginning far fishing For are the our first in as positive and reception partners time continue number from about brand a we past long successful of business. momentum purchased hard as that we innovations possible. In work company give experience an SCUBAPRO our diving, best the it's to our of for part anglers a as been to in brand, has that integral been recently a supplier quarter

footprint. Improving this savings businesses. our In operational priority, drive catalyst and for we've is and to being efficient innovation, SCUBAPRO business us cost our and integration a our product and to accelerate working a diving business enabling addition been of operational that acquisition more efforts operations continue in vertical future allows all our simplifying hard to a strengthening across be to profitability strategic

In inventory managing on give will details our we Dave addition, more on this. focused levels. are

news the new around heard have the also We tariffs.

our we few ourselves know, you years. the in U.S.-based pride As American are expanded past operations, We company. have and we on which an manufacturing

and or California, have Maine, Alabama, manufacturing multiple Wisconsin. states, Georgia, in operations For we including Minnesota example,

plan. be Regarding of plans, leveraging have tariffs, discuss American this our we our continue part implications mitigation an and important on started will to already the footprint

ability e-commerce. drive Another enhancing to growth priority our strategic is key through

capabilities which to sales digital investing commerce allow commerce We and expertise profitability. of Center accelerate us and will digital that adds are a in in center Excellence,

strategic As we priorities. tough and navigate invest execute to our this continue will environment, we on

future right things us position confident healthy to growth. for are We profitable the are these

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

David Johnson

comparison absorption challenging margin overhead and quarter in quarter pricing, first wanted quarter. To motor negatively Man unfavorable Helen. Gross reflect I to previous trolling between the the was of quarters load-in to sales line due point promotional out by the product you, that unfavorable increased in mix. results first first Thank coda a start, the also Quest impacted

and mentioned, program with savings to continue plan. $XXX,XXX we the down the initiatives cost decreased drive and to expenses between resources costs year Operating improved company's nearly investing first in compensation offset levels. product consulting lower expand quarters prior our been quarter in addition include due hard by higher-than-normal inventory Helen working to deferred on manage the design. with expenses As product primarily to cost volumes warranty savings expense of expenses. We've versus increases our sales that decreased

in million inventory as million, to we our $XXX.X results, quarter. year's that remains challenging is debt-free, our continue which first competitive shareholders. and highlight marketplace sheet continue Our want to the December balance from of strong advantage midst balance a $XX to was down I dividend a in of last meaningful to today's about pay

and dividend ability our to long-term in remain for We recent announced Board confident the our value With December. most plans shareholders. create approving in

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

Operator

[Operator Instructions].

from of LLC. first the Anthony question from comes Sidoti Company, Our & Libizinski line

Anthony Lebiedzinski

So is certainly above revenue, to estimate, as our far as good which see. first, your it in came

I just kind first. So guess broad question housekeeping of

pricing promotional quarterly in know you engaged So of pricing. sort of just more give versus in can us unit terms volumes. the a you have about revenue, sense I

the a again, the to in dynamics pricing So sense of happened just volume unit that versus get quarter? wanted

David Johnson

Yes. I obviously, were mean, in discounting, we the affected quarter. by

of down, that I discounting both But but exact breakdown the by exacerbated So give units you first the quarter. certainly, did can't in are we it. an

Anthony Lebiedzinski

Okay. And was a heard then there made. I acquisition diving

add would -- this? completed that that some us could you be what you So anything said we price you that, like this to you can was can before When helpful. you think about purchase and or give very details more

Helen Johnson-Leipold

offered more excited and making the and of a innovation partner SCUBAPRO of Well, a our efficiency I'll they've product had we and products contributing our to been for long consolidation a some that how that opportunity acquisition. lot time for start just with if we And was we the about source. and making our have are with manufacturing

we're very smoothly excited, the because went know So with and very and worked them. them we integration before

And very into details. a and think, Dave, I added go value. was, it positive can general, in you So

David Johnson

Yes. innovation our will also The to, details increase efficiency as and we're million. but is Q, operation, about. that's as diving price price. that There's All strong the that in which operations well. some approximate Africa in we'll be happy for the out Helen alluded South to the The plant it located around $XX be purchase very of will the able leverage

Anthony Lebiedzinski

that. you value-added thank is It certainly sounds Well, certainly congrats helpful. information. much acquisition a very Okay. And that accretive. on It like for very here

for season you innovation. about I like It off start. know you product busy to side indications the And broadly for of the sense other speaking, is give incoming as now, level, orders just good rest what the as you as far that? So as us is I guess to retail business? the early talked of any at your inventory Can looks enter Humminbird the the a levels

Helen Johnson-Leipold

still all class there's the cautious to things which of new But will train good back given and QX. bounce about. as we on little to are really very as like. It trade. getting our talking reception inventory, understandable that in market predict our unpredictable hard time mixed that's the ordering some may good a expect much But sell-in and are business position Now and products just -- still and don't Watercraft inventory We're got bit well very yet. the going we depends we're on a that but it's they can business by are partner be which and cautious let's the what and in on, is in things as hit some getting but what the in of Jetboil, have talk we've that very reception, it's It's are depends good It's numbers but some innovation new bag our tell. a environment in our too frame, as it some levels. healthy products glad far and and haven't

Anthony Lebiedzinski

Understood.

together just X But Okay. can give I Watercraft you out And about and them. combined additional parse also then segments now. some Recreation you us the information and know Camping

quarter? you what curious Just the in saw to as

David Johnson

The seeing more relative say little of Watercraft but business, a The camping -- in is for quarter. in the growth to the is hate side that paddling I doing business market positivity to better a little bit Yes. market in the bit still We're challenged. business. business camping the the really of

kind quarter of a of different really. is markets, the of first kind tale So X

Anthony Lebiedzinski

about Okay. expanding measures. right. of these then And the talked savings initiatives, your then the about cost savings All as -- talk cost far can also you that. And as impact you

So how as here you come the what to that about could should we on going impact path? look forward continue of think

David Johnson

savings. with it's I progress the happy -- mean we've Yes. made in cost we're

our fruit and getting savings at of the the type initiatives like in really we're but borne of the We're was a pay out to, at factory talked should do. together payout, rates, I costs little we design our trying some on quarter, focused longer-term [ It's first physically of back discount just it to that. scrap us. masked has just the sourcing last cost think but That's to -- alluded factory efficiency, year act impacted product. take looking by We're the looking for midterm just a to that has we we've reducing product expanding on before which floor fruit. and ] about bit had bear definitely

Anthony Lebiedzinski

Okay. Understood.

of terms And right. then All the Okay. in tariffs. lastly,

bit. And for the there you just even know XX being actually I So like actually on little Mexico was about actually new hour announced actually, actually a before was a month news it looks ago. are just a.m. an half tariffs this touched some shortly paused

obviously, manufacturing of just lot do you company a overall, an but the -- guys components. So use U.S., as American imported in

is about guess terms what kind just What you're going broadly strategies other forward? here China tariffs, about sources of far looking at I as just that? to are talk as as the how like should in of we maybe as mitigation far maybe your broadly think speaking any us or exposure So

David Johnson

that to, China, that to with mitigate have Mexico do China. alluded we hesitate to a I think Mexico. in We what American I change do footprint the strategies exposure as on U.S., pretty a do you number things -- some we We right and to with I with business business you are help mean mitigation do Yes. do things stuff. working this because I to Canada, now. want and give are and We on dynamic situation. it's to quickly. can we business mean, of there alluded we we -- our There's

learn think I we as we're and is But assured, going rest to working here. to just more where strategies. as So on we mitigation know come more dust settle the

Operator

turn closing Instructions]. over to Helen now time, remarks. this the for conference back to would I [Operator like At Johnson-Leipold

Helen Johnson-Leipold

and us you. have great hope I joining today, for everyone a Thank you Thank day.

Operator

call. This conference Thank concludes today's participating. for you

You may now disconnect.

Johnson Outdoors (JOUT) 3 Feb 252025 Q1 Earnings call transcript