Johnson Outdoors, the renowned manufacturer of fishing and camping equipment, experienced a substantial decline in sales during its fiscal fourth quarter. This significant decrease in revenue signals a shift in consumer behavior, as individuals are now cutting back on their spending in these areas after years of strong demand.
The company, based in Racine, Wisconsin, is known for producing high-quality products such as Old Town canoes and Eureka! tents. However, it faced a challenging quarter, posting a loss of $16 million, equivalent to a loss of $1.56 per share, for the three months ending on September 29. In the same period last year, the company had achieved a profit of $9.7 million, or 95 cents per share.
The decline in sales was significant, with a 51% decrease totaling $96.3 million.
Helen Johnson-Leipold, the Chief Executive of Johnson Outdoors, acknowledged that the quarter was heavily impacted by a notable decrease in demand. She stated that retailers are currently grappling with high inventory levels, adding to the company's challenges.
Despite these difficulties, Chief Financial Officer David Johnson assured investors that the company's debt-free balance sheet would allow them to continue investing in the business despite the market downturn. The company's primary focus for the upcoming fiscal year will be managing high levels of inventory and striving to improve profitability.
Johnson Outdoors remains committed to its mission of providing top-notch camping and fishing equipment to consumers, and they are optimistic about overcoming these current obstacles.