Johnson Outdoors Inc. (NASDAQ:JOUT) has reported its operating results for the third fiscal quarter ending June 28, 2024. The company's total net sales in the third quarter declined by 8 percent to $172.5 million compared to $187.0 million in the prior year third fiscal quarter.
The total company operating loss was $0.5 million for the third fiscal quarter, a significant change from the operating profit of $17.4 million in the prior year third quarter. Gross margin declined to 35.8 percent from 41.5 percent in the prior year quarter. Operating expenses of $62.3 million increased by $2.2 million from the prior year period, primarily due to increased advertising and promotional spending.
Profit before income taxes was $0.9 million in the current year quarter, compared to $19.8 million in the prior year third quarter. Net income was $1.6 million, or $0.16 per diluted share, versus $14.8 million, or $1.44 per diluted share in the previous year’s third quarter.
For the fiscal 2024 year-to-date period, net sales were $487.0 million, a 14 percent decrease over last year’s fiscal nine-month period. The total company operating loss declined to $0.7 million compared to a profit of $34.3 million in the prior fiscal year-to-date period. Gross margin decreased to 36.2 percent from 38.0 percent in the prior fiscal year-to-date period.
Operating expenses were $176.8 million in the nine-month period ending June 28, 2024, a decrease of $4.6 million from the nine-month period of the prior year due to lower sales volumes year over year, as well as lower incentive compensation and professional services expense, partially offset by increased advertising and promotional spending.
Profit before income taxes for the year-to-date period was $9.8 million versus $47.9 million in the prior year-to-date period. Net income during the first fiscal nine months was $7.7 million, or $0.75 per diluted share, versus $35.5 million, or $3.47 per diluted share, in the prior fiscal year-to-date period.
The company reported cash and short-term investments of $148.4 million as of June 28, 2024. Depreciation and amortization were $14.8 million in the nine-month period ending June 28, 2024, compared to $11.8 million in the prior nine-month period. Capital spending totaled $16.4 million in the current year-to-date period compared with $19.4 million in the prior year period.
In May 2024, the company’s board of directors approved a quarterly cash dividend to shareholders of record as of July 11, 2024, which was payable on July 25, 2024.
Following these announcements, the company's shares moved -0.5%, and are now trading at a price of $40.54. If you want to know more, read the company's complete 8-K report here.
