Johnson Outdoors (JOUT) investor relations material

Executive summary

• Net sales for Q2 rose 16% year-over-year to $194.5 million, with all business segments contributing to growth amid improved retail and trade conditions.

• Operating income more than doubled to $10.3 million, driven by higher sales, improved margins, and cost savings initiatives.

• Net income for Q2 was $9.4 million ($0.89 per diluted share), up from $2.3 million ($0.22 per diluted share) in the prior year quarter.

• Year-to-date net sales increased 21.5% to $335.4 million, with net income of $6.1 million versus a net loss of $13.0 million in the prior year period.

• Market-leading brands, product innovation, and digital expansion reinforced leadership and drove consumer demand.

Financial highlights

• Q2 FY2026 net sales: $194.5 million (+16% YoY); YTD: $335.4 million (+21.5% YoY).

• Gross margin for Q2 improved to 38.8%, up from 35.0% in the prior year quarter; YTD gross margin is 37.9%.

• Operating expenses increased by $11.2 million year-over-year, mainly due to higher sales volume and variable compensation.

• Profit before income taxes for Q2 was $10.2 million, up from $4.2 million in the prior year quarter.

• Cash and equivalents totaled $107.9 million as of April 3, 2026, with no debt outstanding.

Outlook and guidance

• Management remains focused on financial discipline and balancing near-term pressures with investments for sustainable growth amid ongoing macroeconomic uncertainties.

• Gross margin may face headwinds from dynamic component costs, but cost savings efforts are expected to help offset this.

• Operating expenses are expected to stabilize as volume-driven costs settle.

• Tax expense for the year is projected at $4–5 million, with quarterly rates fluctuating based on profit mix.

• Uncertainty remains regarding the timing and amount of potential tariff refunds following a Supreme Court ruling.