Johnson Outdoors Inc. (JOUT) announced on Monday that its third-quarter profit weakened, attributed to lower net sales and volumes amid decreased demand.
The outdoor recreation equipment and technology company reported third-quarter net income of $1.62 million, or $0.16 per share, a significant drop from last year's $14.80 million, or $1.44 per share.
The company experienced an operating loss of $0.51 million, in stark contrast to the prior year's operating profit of $17.44 million. Gross margin also declined to 35.8 percent from 41.5 percent the previous year.
The reduction in gross margin was primarily due to unfavorable overhead absorption resulting from decreased sales volumes and a shift in the product mix towards lower margin products.
Total net sales for the third quarter fell by 8 percent to $172.47 million, down from $187.05 million the previous year.
Helen Johnson-Leipold, Chairman and Chief Executive Officer, stated, "Challenging marketplace conditions, primarily due to lower consumer demand for outdoor recreation products and intense promotional activity, have affected our performance. Consequently, we are assessing all aspects of the business to enhance our financial results and are reallocating resources to drive future growth."
Johnson-Leipold added, "While expanding our cost-saving measures to improve margins and continuing to reduce inventory levels, we remain dedicated to investing in revenue and profit-generating initiatives, particularly in innovation, digital, and e-commerce capabilities, to ensure Johnson Outdoors' long-term success in the marketplace."
