Johnson Outdoors Inc. Q4 FY2025 earnings call

• Fiscal 2025 ended solidly despite slow start, with total company sales flat vs prior year but operating loss improved to $16.2M from $29.9M in 2024.
• In Fishing, Humminbird's new products drove demand and won awards.
• In Camping and Watercraft, JetBoil and Old Town showed strength despite sales decline from Eureka! exit.
• In Diving, sales improved in some regions and SCUBAPRO launched new product.
• Focus on innovation across all businesses, with innovation as key priority.
• Strengthening digital and e-commerce capabilities to make products easy to find.
• Cost savings program remains a priority company-wide, with focus on driving optimal product costs and operating efficiencies in fiscal 2026.

Fishing

• Demand exceeded expectations for Humminbird's XPLORE Series and MEGA Live 2 fishfinders. XPLORE won best in category marine electronics at ICAST and Anglers' Choice Award.

Camping and Watercraft

• Sales declined for fiscal 2025 primarily due to Eureka! inventory closeout in 2024 after exiting the brand. Excluding Eureka! sales, the segment grew by 2%. JetBoil's new fast boil cooking systems had strong demand, and Old Town's fishing kayak line performed well.

Diving

• Sales were up for the fiscal year due to modest improvements in certain regional markets. SCUBAPRO launched the new Hydros Pro 2 buoyancy control device, which received positive reception at DEMA.

• Ongoing investment in consumer-driven innovation, digital and e-commerce excellence, and operational efficiencies for fiscal 2026.
• Confident that momentum seen in late 2025 will continue into fiscal 2026, with focus on innovation as key driver for growth.

• Global macroeconomic challenges continuing to drive uncertainties.
• Tariff situation evolving, which may impact business.

Q: Could you comment on if the fourth quarter revenue gain was mostly volume driven and if momentum continued into early fiscal '26?

A: Helen Johnson-Leipold said they were excited about third and fourth quarter performance, things grew each month, market momentum continuing early in fiscal '26 but not ready to say market has turned corner yet.

Q: Talk about new product pipeline for '26 at a high level?

A: Helen Johnson-Leipold mentioned diving has new buoyancy compensator, fishing has momentum from past launches, innovation is key priority across all businesses.

Q: Comment on tariffs, pricing actions and reception from retail partners?

A: David Johnson said they took strategic pricing, retailers understand, preseason now, will be up to consumers.

Q: Can you put a number on operational efficiencies impact on gross margin and more opportunities?

A: David Johnson said they drove over 1 point of gross margin improvement from operational efficiencies, full portfolio of cost savings initiatives for fiscal '26.

Q: Thoughts on effective tax rate for fiscal '26?

A: David Johnson said with the reserve in place, expected tax rate to be in mid- to high-20s range going forward