Johnson Outdoors' (JOUT) Q4 Earnings and Sales Miss Estimates
Johnson Outdoors Inc. JOUT reported dismal fourth-quarter fiscal 2023 (ended Sep 29, 2023) results, with earnings and net sales missing the Zacks Consensus Estimate. On a year-over-year basis, the top and the bottom line declined.
The moderating pandemic-driven demand and elevated retail inventory levels affected the company's performance.
Johnson Outdoors’ shares dropped 9.86% on Dec 8 after the earnings release.
Inside the Numbers
In the quarter under review, Johnson Outdoors reported an adjusted loss of $1.56 per share, missing the Zacks Consensus Estimate of an adjusted loss of 32 cents. The company reported an adjusted earnings per share of 95 cents in the prior-year quarter.
Johnson Outdoors Inc. Price, Consensus and EPS Surprise
Johnson Outdoors Inc. price-consensus-eps-surprise-chart | Johnson Outdoors Inc. Quote
JOUT reported quarterly net sales of $96.4 million, missing the consensus estimate of $121.1 million. The metric declined 50.9% year over year.
The gross margin contracted 540 basis points (bps) year over year to 29.5%. The gross profit plunged 58.6% year over year to $28.4 million. The downside was due to lower sales, increased inventory reserves and unfavorable overhead absorption.
The company reported an operating loss of $22.6 million against the operating profit of $13.3 million in the prior-year quarter.
Financial Highlights
As of Sep 29, 2023, cash and cash equivalents totaled $111.9 million compared with $129.8 million as of Sep 30, 2022. The company stated that it has no debt obligations.
In September 2023, the company's board of directors approved a 3% increase in the quarterly cash dividend for shareholders of record as of Oct 13, 2023. The dividend was payable on Oct 27, 2023.
Fiscal 2023 Highlights
In the fiscal 2023, JOUT reported adjusted earnings per share of $1.9, down 56.5% year over year. Net sales of $663.8 million were down 11% year over year. Operating profit margin was 1.8% compared with 8.9% in the year-ago quarter. The gross margin was 36.8%, slightly improved from 36.5% reported in the year-ago quarter.
Zacks Rank & Key Picks
Johnson Outdoors currently sports a Zacks Rank #5 (Strong Sell).
Here are some better-ranked stocks from the Zacks Consumer Discretionary sector:
Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 28.3% on average. Shares of RCL have surged 111.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 57.7% and 187.9%, respectively, from the year-ago period’s levels.
Live Nation Entertainment, Inc. LYV flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 37.5% on average. Shares of LYV have increased 15.8% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a rise of 28.6% and 132.8%, respectively, from the year-ago period’s levels.
Stride, Inc. LRN carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 44.3% on average. Shares of LRN have increased 85.1% in the past year.
The Zacks Consensus Estimate for LRN’s 2024 sales and EPS indicates a rise of 9.1% and 34.7%, respectively, from the year-ago period’s levels.
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Stride, Inc. (LRN) : Free Stock Analysis Report
