Johnson Outdoors Inc. Q1 FY2026 earnings call

• Fiscal 2026 started with markets stabilizing and strong reception to new products, driving double-digit growth. Operating loss improved vs prior year. • Fishing: Minn Kota and Humminbird had solid performance, with Humminbird's Explorer series and Mega Live 2 in demand, and Minn Kota's trolling motors seeing healthy demand. • Camping and watercraft: Investments in digital and e-commerce paying off, with Jetboil and Old Town strong in their markets. • Diving: Improved global conditions and innovation led to sales increase, with positive momentum for Scubapro's Hydros Pro 2. • Priorities include maintaining innovation pipeline, growing digital/e-commerce, and improving product costs/operating efficiency.

In the Fishing segment, Minn Kota and Humminbird brands delivered solid performance. The category benefited from improved trade dynamics, with strong demand for Humminbird's Explorer series and Mega Live 2 fish finders, and healthy demand across Minn Kota's trolling motors. In camping and watercraft, investments in digital and e-commerce paid off, with Jetboil and Old Town remaining strong leaders; Jetboil saw strong demand for its fast-boil cooking systems. In diving, improved global market conditions and innovation drove sales growth, with positive momentum for Scubapro's Hydros Pro 2 product.

• Continue to maintain a strong and robust innovation pipeline. • Build growing momentum in digital and e-commerce. • Continue to improve product costs and operating efficiency with cost savings initiatives.

• Uncertainties in the broader environment; actual events may differ materially from forward-looking statements due to factors beyond Johnson Outdoors' control, as listed in press releases and SEC filings.

Q: General question about pricing versus unit volumes.

A: Most increase in the quarter was unit volume driven, but pricing taken across businesses to react to cost increases.

Q: Share on innovation and new product component of sales.

A: Innovation critical, focus on improving success rate; new product success improved over last couple years, though COVID cycle may have affected it temporarily.

Q: Percentage of revenue related to e-commerce and goals.

A: E-commerce is the fastest growing channel, goal is to grow it faster than overall business.

Q: Sense of current trade inventory levels.

A: Trade was in good position from inventory standpoint due to good sell-in during first quarter, and in healthy position currently.

Q: Expectations on further cost savings initiatives.

A: Cost savings is a key strategy going forward, with slew of initiatives to optimize product costs and efficiency.

Q: Significance of warranty expense adjustment to OpEx.

A: Warranty expense came down in the quarter, being less than a point of operating expense percentage decrease.

Q: Expectation on tax rate for rest of fiscal year.

A: Tax rate will be wonky going forward until profits stabilize due to valuation allowance in the US and profits in various geographies