Johnson Outdoors posts slight drop in sales for Q2
By IBI Magazine
Johnson Outdoors reported sales of US$121.8 million for its second quarter ended March 28, 2008, a one per cent decline compared to the same period a year ago. Its net income declined by 74 per cent to US$462,000, compared to US$1.7 million for the same period a year ago. The company said in a statement that sales were flat because of lower marine electronics sales, which were 4.6 per cent behind last year's numbers, and lower military sales. Its Watercraft division's sales increased 5.1 per cent over last year because of a growth in paddle sport accessories. Its Diving revenues were up 20.3 per cent because of growth in international markets. Its profit margins were driven down because of lower margins on marine electronics and lower military sales. "Economic uncertainty in the US is starting to have an effect on outdoor retailers, which are keeping inventory levels below last year until they can gauge consumer demand at shelf in the next few months," said Helen Johnson-Leipold, chairman and CEO, in a statement. "On the other hand, international sales continue to grow and orders among US specialty retailers are solid." Johnson-Leipold said that Johnson Outdoors has instituted company-wide cost-control measures. "We are working hard to manage inventory levels down in the face of a soft marketplace," she added.
(28 April 2008)
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