Fishing takes brunt as Johnson Outdoors posts 15% sales decline

Johnson Outdoors is not pulling any punches following a 15% decline in sales to $175.9 million for the second quarter of this year and an operating loss of $250,000. Operating profit in the same quarter last year was $11.4 million.

The Wisconsin company says the competitive landscape is intensifying, and the operating loss indicates that current strategies may not be enough to overcome market challenges.

Brands owned by Johnson include Minn Kota trolling motors, Humminbird electronics and charts, Cannon Downriggers and Old Town canoes and kayaks.

All four business segments – fishing, camping, diving and watercraft recreation – took a significant hit on sales, with fishing the worst affected.

The company’s reaction to the dismal figures is to focus on investment in marketing, promotions and new product launches, with lower-priced products gaining traction. It is working to reduce inventory levels and improve profits through cost-saving. Profit growth will be achieved by organic efforts or acquisitions, it told investors.

Despite a difficult year, the company has maintained a dividend yield of 3.49%, the eleventh consecutive year it has raised its dividend and evidence of a commitment to returning value to shareholders.