Supply chain issues provoke 19% drop in Johnson Outdoors fishing sales
Shares in Johnson Outdoors dropped 23% to a 52-week low after the company revealed second quarter earnings well short of expectations. The shortfall in revenue was largely due to fishing sales.
The company, which owns brands including Humminbird, Minn Kota and Cannon, reported earnings of $9.9 million compared to $27.8 million in the same quarter last year.
Sales came in at $189.6 million compared to last year’s $206.2 million and the $202.3 million that analysts were expecting.
Fishing sales dropped 19% due to supply chain disruptions, said the company, while there was growth in camping, watercraft recreation and diving sales
“In fishing, anglers continue to look to Johnson Outdoors for the best fishing experience possible, and demand across all product lines remains strong,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
“Ongoing supply issues and component delays are slowing our ability to complete and ship finished products. We have invested in available components, so we’re positioned to finish the products as we receive remaining parts. This is a very difficult and challenging environment.
“We expect our margins to be challenged this fiscal year with the current supply chain dynamics.”
At the halfway mark of the fiscal year, Johnson’s year-to-date sales are down 8% compared to the same period in 2021. Year-to-date, operating profit also declined compared to the prior six-month period.