Fiscal third quarter
Filed Aug 7, 2026Johnson Outdoors reported third-quarter net sales of $189.7 million, operating income of $18.3 million and net income of $14.9 million, supported by Fishing and Diving growth and approximately $15 million of tariff refunds.
Net sales increased 5 percent, gross margin improved to 45.3 percent from 37.6 percent, and operating income increased to $18.3 million from $7.3 million. The margin improvement included approximately $15 million of tariff refunds, while Camping & Watercraft Recreation sales declined 13 percent and management remained cautious on costs.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months endedGAAP | $ 189,731 (thousands) | – | increased 5 percent |
| Cost of sales, three months endedGAAP | 103,796 (thousands) | – | – |
| Gross profit, three months endedGAAP | 85,935 (thousands) | – | – |
| Gross margin, three months endedGAAP | 45.3 percent | – | – |
| Operating expenses, three months endedGAAP | 67,592 (thousands) | – | increased $7.0 million |
| Operating profit, three months endedGAAP | $ 18,343 (thousands) | – | – |
| Interest income, net, three months endedGAAP | $(1,149) (thousands) | – | – |
| Other expense (income), net, three months endedGAAP | $(3,778) (thousands) | – | – |
| Profit before income taxes, three months endedGAAP | $ 23,270 (thousands) | – | – |
| Income tax expense, three months endedGAAP | 8,322 (thousands) | – | – |
| Effective tax rate, three months endedGAAP | an expense of 35.8 percent | – | – |
| Net income, three months endedGAAP | $ 14,948 (thousands) | – | – |
| Weighted average common shares outstanding - Dilutive, three months endedGAAP | 10,388 (thousands) | – | – |
| Net income per common share - Diluted, three months endedGAAP | $ 1.42 | – | – |
| Net sales, nine months endedGAAP | $ 525,146 (thousands) | – | a 15.0 percent increase |
| Gross margin, nine months endedGAAP | 40.6 percent | – | – |
| Operating expenses, nine months endedGAAP | 187,253 (thousands) | – | increased $20.3 million |
| Operating profit (loss), nine months endedGAAP | $ 25,780 (thousands) | – | – |
| Profit (loss) before income taxes, nine months endedGAAP | $ 32,222 (thousands) | – | – |
| Net income (loss), nine months endedGAAP | $ 21,057 (thousands) | – | – |
| Net income (loss) per common share - Diluted, nine months endedGAAP | $ 2.00 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| FishingStrength in Minn Kota and pricing actions. | $ 149,985 (thousands) | – | increased 7 percent |
| Camping & Watercraft RecreationWeak marketplace conditions in these segments. | $ 16,432 (thousands) | – | declined 13 percent |
| DivingStrong sales in regulators and buoyancy compensator devices. | $ 23,313 (thousands) | – | increased 10 percent |
| Other / EliminationsNot provided. | $ 1 (thousands) | – | – |
Capital returns
- In May 2026, the Company’s Board of Directors approved a quarterly cash dividend to shareholders of record as of July 16, 2026, which was payable July 30, 2026.
What drove it
- Fishing revenue increased 7 percent, driven by strength in Minn Kota and pricing actions.
- Diving sales increased 10 percent, driven by strong sales in regulators and buoyancy compensator devices.
- Tariff refunds received of approximately $15 million during the quarter contributed to gross-margin improvement.
- Fiscal 2026 year-to-date margin improvement reflected tariff refunds, pricing actions, improved overhead absorption, and cost savings initiatives that more than offset higher material costs.
Concerns
- Camping & Watercraft Recreation sales declined 13 percent, primarily due to weak marketplace conditions in these segments.
- Operating expenses increased $7.0 million from the prior-year period due primarily to increased sales-volume related costs and increased variable compensation costs.
- Management said broader cost inflation and other expense increases offset some tariff-refund benefit.
- Management remained cautious about the outlook for costs as tariff policies continue to evolve.
- Inventories, net were 188,263 (thousands) compared to 163,732 (thousands).
What to watch
- The development of tariff policies and their effect on costs.
- Whether Fishing strength in Minn Kota and pricing actions continues.
- Demand conditions in Camping & Watercraft Recreation.
- Inventory management as the Company positions the business to support sales demand.
Balance sheet and cash flow
- Cash, cash equivalents and short-term investments were $ 175,245 (thousands) as of July 3, 2026, compared to $ 161,022 (thousands).
- Accounts receivable, net were 76,414 (thousands) as of July 3, 2026, compared to 81,993 (thousands).
- Inventories, net were 188,263 (thousands) as of July 3, 2026, compared to 163,732 (thousands).
- Total current assets were 447,901 (thousands) as of July 3, 2026, compared to 420,073 (thousands).
- Total assets were 648,370 (thousands) as of July 3, 2026, compared to 634,473 (thousands).
- Total current liabilities were 132,953 (thousands) as of July 3, 2026, compared to 105,562 (thousands).
- Total liabilities were 217,735 (thousands) as of July 3, 2026, compared to 184,009 (thousands).
- Shareholders’ equity was 430,635 (thousands) as of July 3, 2026, compared to 450,464 (thousands).
- Depreciation and amortization were $15.0 million in the nine-month period ending July 3, 2026, compared to $15.3 million in the prior nine-month period.
- Capital spending totaled $16.4 million in the current quarter compared with $11.8 million in the prior year quarter.
Analysis
Johnson Outdoors delivered broad third-quarter improvement in reported profitability. Net sales increased 5 percent to $189.7 million, while gross margin improved to 45.3 percent from 37.6 percent and operating income increased to $18.3 million from $7.3 million. Net income was $14.9 million, or $1.42 per diluted share, compared with $7.7 million, or $0.75 per diluted share, in the prior-year quarter.
Fishing was the principal revenue contributor, increasing 7 percent on strength in Minn Kota and pricing actions. Diving sales increased 10 percent on regulators and buoyancy compensator devices. These gains were partly offset by a 13 percent decline in Camping & Watercraft Recreation, where the Company cited weak marketplace conditions.
Margin performance benefited materially from approximately $15 million of tariff refunds received during the quarter. Management also cited pricing actions, improved overhead absorption and cost savings initiatives in year-to-date margin improvement. This benefit came alongside higher costs: quarterly operating expenses increased $7.0 million because of increased sales-volume related costs and variable compensation costs, and the CFO said broader cost inflation and other expense increases offset some tariff-refund benefit.
The nine-month results show a substantial improvement from the prior year, with net sales of $525.1 million, operating profit of $25.8 million and net income of $21.1 million, compared with a prior-year operating loss of $(8.0) million and net loss of $(5.2) million. Other income increased by $2.1 million year to date, primarily from investment gains and earnings on assets related to the non-qualified deferred compensation plan, offset entirely by higher operating expense.
Liquidity included cash, cash equivalents and short-term investments of $175.2 million as of July 3, 2026. Inventory was higher than the prior-year quarter as the Company positioned the business to support sales demand. Capital spending was $16.4 million in the current quarter, and the Board approved a quarterly cash dividend, but the release did not disclose the dividend amount. No forward financial guidance was provided, while management emphasized uncertainty around macroeconomic conditions and evolving tariff policies.
Management, verbatim
We delivered solid third quarter results with total company sales increasing 5 percent, reflecting the strength of our market-leading brands.
Helen Johnson-Leipold, Chairman and Chief Executive Officer
We recognized approximately $15 million of tariff refunds in the third quarter, with some of that benefit offset by broader cost inflation and other expense increases.
Asad Rahman, Chief Financial Officer
Not in the filing
stated, not guessed- Forward financial guidance
- Previous-quarter comparisons for reported metrics
- Operating cash flow
- Free cash flow
- Debt balances
- Share repurchases
- Quarterly cash dividend amount
- Non-GAAP financial metrics
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.