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RACINE, Wis. - On Friday, Johnson Outdoors Inc. (NASDAQ:JOUT) reported fiscal third-quarter earnings that significantly exceeded analyst expectations, driven by strong performance in its fishing segment and improved operational efficiency.
The outdoor recreation equipment manufacturer posted adjusted earnings per share of $0.75 for the quarter ending June 27, 2025, substantially beating the analyst estimate of $0.18. Revenue rose 5% to $180.7 million, surpassing the consensus estimate of $172.98 million and improving from $172.5 million in the same period last year.
The company’s fishing segment led the growth with an 8% revenue increase due to successful new product launches. Diving sales rose 7%, benefiting from stronger market conditions and favorable currency translation. The camping and watercraft recreation segment declined 14%, primarily due to the company’s exit from the Eureka! business.
"While the marketplace continues to fluctuate, this quarter’s positive results emphasize the importance of our focus and investment on delivering market-winning innovation," said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
Gross margin improved to 37.6% from 35.8% in the prior year quarter, driven by better overhead absorption from higher sales volumes and reduced product discounting. Operating expenses decreased by $1.7 million to $60.6 million, reflecting lower promotional and professional services expenses.
The company maintained a strong financial position with $161 million in cash and short-term investments as of June 27, 2025, up from $148.4 million a year earlier. Capital spending totaled $11.8 million in the quarter, down from $16.4 million in the prior year period.
Looking ahead, Johnson Outdoors continues to focus on operational efficiency while navigating an uncertain tariff environment. "We continue to work through short- and long-term strategies to mitigate the potential increases in costs," said David W. Johnson, Chief Financial Officer.
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