Johnson Outdoors Inc. (NASDAQ:JOUT) Q1 2024 Earnings Call Transcript
Johnson Outdoors Inc. (NASDAQ:JOUT) Q1 2024 Earnings Call Transcript February 2, 2024
Johnson Outdoors Inc. misses on earnings expectations. Reported EPS is $-1.56 EPS, expectations were $0.15. Johnson Outdoors Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Hello, everyone, and welcome to the Johnson Outdoors First Quarter 2024 Earnings Conference Call. Today's call will be led by Helen Johnson-Leipold, Johnson Outdoors Chairman and Chief Executive Officer. Also on the call is David Johnson, Vice President and Chief Financial Officer. Prior to the question-and-answer session, all participants will be placed in a listen-only mode. After the prepared remarks, the question-and-answer session will begin. [Operator Instructions] This call is being recorded. Your participation implies consent to our recording this call. If you do not agree to these terms, simply drop off the line. I would now like to turn the call over to Pat Penman from Johnson Outdoors. Please go ahead, Ms. Penman.
Pat Penman: Thank you. Good morning, and thank you for joining us for our discussion of Johnson Outdoors results for the 2024 fiscal first quarter. If you need a copy of today's news release, it is available on our website at johnsonoutdoors.com under investor relations. I also need to remind you that this conference call may contain forward-looking statements. These statements are made on the basis of our current views and assumptions and are not guarantees of future performance. Actual events may differ materially from those statements due to a number of factors, many beyond Johnson Outdoors control. These risks and uncertainties include those listed in our press release and filings with the Securities and Exchange Commission. If you have additional questions following the call, please contact Dave Johnson or myself. It is now my pleasure to turn the call over to Helen Johnson-Leipold.
Helen Johnson-Leipold: Thanks, Pat. Good morning, everyone, and thank you for joining us. I'll begin with an overview of our first quarter results, then I'll share perspective on the performance and outlook for our businesses. Today, we'll review financial highlights, and then we'll take your questions. Sales in our first fiscal quarter ending December, 2023 declined 22% to $138.6 million compared to $178.3 million in the prior year first quarter. Net income for the quarter was $4 million, or $0.38 per diluted share, versus $5.9 million, or $0.57 per diluted share in the previous year's first quarter. Our first quarter results are significantly impacted by high inventory levels at retail and slower consumer demand. In this challenging marketplace, we are investing in consumer marketing programs to reinforce the strengths of our brands, support new product launches, and to stimulate increased demand.
In addition, we are executing on a cost savings program and diligently managing expenses. Importantly, we continue to invest in innovation to bring consumers the best outdoor experience as possible. In fishing, while we are seeing headwinds in the marketplace, we're excited to see solid trade support behind Minn Kota's QUEST series, the all-new brushless trolling motor technology that we announced last fiscal year. Nonetheless, consumer behavior in season will be the critical factor. In our diving business, sales declined slightly compared to the prior year quarter, which reflected a strong recovery from the pandemic. In the current period, we have seen markets begin to normalize. Our Camping and Watercraft Recreation sales are down due to a continued decline in their markets from the elevated pandemic field demand of the past few years.
In watercraft recreation, however, our Old Town sportsman line is outperforming competitors in a very depressed marketplace. The award-winning ePDL+ drive announced last year is the newest addition to the line. And in camping, we continue to work on leveraging Jeff Boyle's brand equity into expansive growth opportunities. As we head into the season, we expect the outdoor recreation marketplace will remain challenged with uncertainty in demand and retailers continuing to tightly manage their inventory levels. We will continue to execute on our cost savings programs, manage expenses, and focus on creating consumer focused innovation, investing in marketing to keep our brand strong so we can provide consumers with the best outdoor experience possible.
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