Johnson Outdoors Inc. (NASDAQ:JOUT) shares fell 2.8% in premarket trading on Friday after the outdoor recreation equipment company posted second-quarter results that included stronger revenue but earnings that narrowly missed analyst expectations.
Revenue rises across all major business segments
The company reported adjusted earnings per share of $0.89 for the quarter, slightly below analyst forecasts of $0.91 per share.
Revenue came in at $194.5 million, ahead of Wall Street expectations of $181.9 million and representing a 16% increase from $168.3 million recorded in the same quarter last year.
Johnson Outdoors said sales growth was supported by improved retail demand and higher revenue across each of its business divisions.
Fishing segment sales increased 18% during the quarter, while Diving revenue rose 9%. Camping & Watercraft Recreation sales also posted a modest 1% increase.
“We delivered a strong second quarter, with growth across all of our business segments as retail conditions improved and our innovation continued to perform well,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
Margins and operating income improve
Gross margin improved to 38.8% from 35.0% in the prior-year period, helped by stronger overhead absorption and company cost-saving measures.
Operating income more than doubled to $10.3 million from $4.9 million recorded in the second quarter of fiscal 2025.
However, operating expenses increased by $11.2 million to $65.1 million, driven by higher costs linked to increased sales volumes and greater variable compensation expenses.
Net income increases sharply year-on-year
Net income reached $9.4 million, or $0.89 per diluted share, compared with $2.3 million, or $0.22 per diluted share, in the same quarter a year earlier.
The company’s effective tax rate fell to 7.8%, compared with 44.6% in the prior-year quarter.
For the first six months of the fiscal year, net sales rose 21.5% to $335.4 million.
Johnson Outdoors reported net income of $6.1 million, or $0.58 per diluted share, for the six-month period, compared with a net loss of -$13.0 million, or -$1.26 per diluted share, in the previous year.
Cash position remains solid
As of April 3, 2026, the company held cash and short-term investments totalling $107.9 million.