JOHNSON OUTDOORS INC Q1 FY2025 earnings call

• Strengthening innovation capability: In fishing, Humminbird launched new technology with positive reception; in diving, acquired a long-time supplier for SCUBAPRO to aid innovation and vertical integration. - Focus on operational efficiencies: Working on cost savings across businesses, managing inventory levels. - Tariffs: Discussing implications and leveraging U.S.-based manufacturing for mitigation plans. - Enhancing e-commerce: Investing in digital commerce center and CoE to accelerate sales and profitability.

The camping business performed better relative to the Watercraft business in the first quarter. No specific absolute revenue numbers or contribution percentages were provided for product segments.

• No expectation of market bounce back in Q2. - Confident in strategic priorities (innovation, operational efficiencies, e-commerce) to position for future healthy profitable growth.

• Ongoing marketplace challenges with cautious retail and trade channel environment and competitive pressures. - Impact of tariffs, with uncertainties around their implications. - Mixed inventory levels across partners, with cautious ordering in the market.

Q: Could you give a sense of pricing versus unit volume dynamics in the quarter?

A: Affected by discounting, both units down exacerbated by discounting in the first quarter.

Q: Could you provide more details on the diving acquisition?

A: Purchased a long-time supplier for SCUBAPRO in South Africa, around $14 million, increasing efficiency and aiding innovation.

Q: What's the situation with inventory levels?

A: Mixed bag, some partners healthy, some with too much inventory, cautious ordering, new products getting good trade reception but market still unpredictable.

Q: Could you parse out Camping and Watercraft Recreation segments?

A: Camping business doing better than Watercraft, paddling market still challenged.

Q: Talk about impact of cost savings initiatives and future impact?

A: Progress made on cost savings, expanding to sourcing initiatives and product design to reduce costs, mid-term to longer-term payoff.

Q: Talk about tariffs and mitigation strategies?

A: Working on mitigation strategies, leveraging U.S. manufacturing footprint as part of plan, dynamic situation with ongoing work to learn more.