Johnson Outdoors Inc. Q2 FY2026 earnings call

Markets stabilized and new products received solid reception, helping drive double-digit growth in the quarter. The operating loss for the first quarter was much improved versus the prior year quarter. In fishing, Minn Kota and Humper brands had solid performance with strong demand for related products. In camping and watercraft, digital and e-commerce investments were paying off with strong performance from Jetboil and Old Town. In diving, improved global market conditions and innovation contributed to sales growth, and digital engagement was important in the diving segment.

In the first quarter of fiscal 2026, for fishing, both Minn Kota and Humper brands delivered solid performance. The category benefited from improved trade dynamics, with strong demand for Hummingbird's Explore Series and Megalive II fish binders, and healthy demand across Minn Kota's full lineup of trolling motors. For camping and watercraft, investments in digital and e-commerce paid off. Jetboil continued to see strong demand for its fast-boiled cooking systems, and both Old Town and Jetboil remained strong leaders in their respective markets. For diving, improved conditions across the global market and innovation drove an increase in sales. There was positive momentum for Scuba Pro's new Hydros Pro 2 product, and digital engagement was becoming increasingly important in diving.

Encouraged by how the fiscal year has started, management feels good about the execution of plans to accelerate the growth of the business and brands. Priorities include maintaining a strong innovation pipeline, building on the growing momentum in digital and e-commerce, and continuing to improve product costs and operating efficiency through cost savings initiatives.

There are uncertainties in the broader environment. Risks and uncertainties include those listed in the press release and filing with the Securities and Exchange Commission.

Q: General question on pricing versus unit volumes.

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

Q: Share broadly on sales from new product versus a few years ago.

A: Innovation has always been critical, and we've seen improvement in new product success over the last couple of years.

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

A: E-commerce is the fastest growing channel, and the goal is to continue to grow it at a faster pace than across businesses.

Q: Sense about current trade inventory levels.

A: Trade was in a good position from an inventory standpoint after a good sell-in in the December quarter.

Q: Expect more cost savings initiatives.

A: Cost savings initiatives are a key strategy going forward, and we'll continue to work on optimizing product costs.

Q: Significance of warranty expense adjustment.

A: Warranty expense came down in the quarter, which contributed to the operating expense percentage going down.

Q: Tax rate for balance of fiscal year.

A: The tax rate will be wonky going forward due to the valuation allowance on deferred tax assets in the U.S. until profits stabilize