Outdoor recreation equipment and technology company, Johnson Outdoors, reported lower sales and net income during the Company’s 2020 third fiscal quarter ending June 26, 2020, compared to the prior year quarter. Year-to-date revenue and net income also declined.
“As expected, the COVID-19 pandemic had a significant impact on the quarter. Strong momentum in Fishing, Watercraft Recreation and Camping in May and June could not offset the pandemic-related impact on operations in April. Stay-at-home mandates hit during the heart of our primary selling season, as many retailers were closed and consumers were restricted to essential-only activities. As those mandates eased, we began to see high demand and growing participation in Fishing, Camping and Watercraft Recreation, while travel restrictions continue to limit accessibility to Diving,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “Going forward, our goal is to continue the positive momentum of our Fishing, Watercraft Recreation and Camping brands through the end of the year by leveraging the increased interest in outdoor activities to the fullest.”
At the beginning of the third quarter, the company temporarily suspended operations at some locations. When production and shipments resumed in its North American operations on April 22, 2020, the company began operating under strict procedures and protocols, consistent with CDC guidelines and public health safety directives for COVID-19, and will continue to do so for the foreseeable future.
THIRD QUARTER RESULTS
Total company net sales declined 21.5% to $138.4 million, versus $176.3 million in the prior year third quarter.
- Strong demand in Fishing throughout May and June was not enough to offset the impact of COVID-19 in April, resulting in a 20% decline in sales.
- New product innovation and positive market dynamics in Watercraft drove higher demand, leading to a 17% growth in revenue.
- Retail closures and state and national park closures contributed to a 34% decline in Camping sales.
- Diving, our most global business and the first to be affected by stay-at-home mandates, posted a 47% decline in revenue.
Content extracted from https://boatingindustry.com/news/2020/08/04/johnson-outdoors-reports-lower-third-quarter-results/