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1. Company Snapshot

1.a. Company Description

Johnson Outdoors Inc.designs, manufactures, and markets seasonal and outdoor recreational products for fishing worldwide.It operates through four segments: Fishing, Camping, Watercraft Recreation, and Diving.


The Fishing segment offers electric motors for trolling, marine battery chargers, and shallow water anchors; sonar and GPS equipment for fish finding, navigation, and marine cartography; and downriggers for controlled-depth fishing.This segment sells its products under the Minn Kota, Humminbird, and Cannon brands through outdoor specialty and Internet retailers, retail store chains, original equipment manufacturers, and distributors.The Camping segment provides consumer, commercial, and military tents and accessories; camping furniture and stoves; other recreational camping products; and portable outdoor cooking systems, as well as manufactures fabric floors and insulated thermal liners and a subcontract manufacturer of military tents.


This segment sells its products under the Eureka! and Jetboil brands through independent sales representatives and Internet retailers.The Watercraft Recreation segment offers kayaks, canoes, and paddles for family recreation, touring, angling, and tripping through independent specialty and outdoor retailers under the Ocean Kayaks, Old Town, and Carlisle brands.The Diving segment manufactures and markets underwater diving and snorkeling equipment, such as regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels, and accessories through independent specialty dive stores and diving magazines under the SCUBAPRO brand name.


This segment also provides regular maintenance, product repair, diving education, and travel program services; and sells diving gear to dive training centers, resorts, public safety units, and armed forces.It sells its products through Websites.The company was founded in 1970 and is headquartered in Racine, Wisconsin.

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1.b. Last Insights on JOUT

Johnson Outdoors' recent performance was negatively impacted by dismal market demand trends and competitive risks. The company's Q1 fiscal 2025 results reflected weak sales, partly due to the challenging market conditions for outdoor recreation products. Additionally, the acquisition of a diving equipment business for $12 million has weakened the company's balance sheet, exacerbating the poor expense control. The lack of progress on excess inventory is also a concern, indicating a need for improved operational efficiency.

1.c. Company Highlights

2. Johnson Outdoors' Q1 Fiscal 2026 Earnings: A Strong Start

Johnson Outdoors reported a loss before income taxes of $1.3 million for the first quarter of fiscal 2026, significantly improved from the pre-tax loss of $18.9 million in the previous year quarter. The company's gross margin increased to 36.6%, up 6.7 points from the prior year, driven by revenue growth and improving margins. Actual EPS came out at -$0.33, beating estimates of -$0.45. Revenue growth was driven by double-digit growth in the quarter, with new products receiving a solid reception in the market.

Publication Date: Mar -07

📋 Highlights
  • Q1 Fiscal 2026 Start:: Double-digit growth driven by stabilized markets and strong new product reception.
  • Operating Loss Improvement:: Loss reduced to $1.3M (vs $18.9M prior year), aided by revenue growth and margin gains.
  • Gross Margin Expansion:: Jumped to 36.6%, up 670 bps year-over-year, reflecting cost savings and operational efficiency.
  • E-Commerce Momentum:: Jetboil and Old Town brands saw growth via enhanced digital discovery and purchase ease.
  • Unit Volume vs Pricing:: 75% of growth attributed to unit volume, with selective price hikes offsetting cost pressures.

Operational Highlights

The company's focus on meeting consumers online and making it easier for them to discover and purchase products helped drive growth in the quarter for Jetboil and Old Town, with both brands remaining strong leaders in their markets. According to David W. Johnson, "most of the increase in the quarter was unit volume driven, but the company did take pricing to react to cost increases."

Growth Drivers and Outlook

The company is pleased with the start of fiscal 2026, with priorities including maintaining a strong innovation pipeline, building a growing momentum in digital and e-commerce, and continuing to improve product costs and operating efficiency. The e-commerce channel has seen expansive growth, with a goal to continue to grow at a faster pace than across the businesses. Analysts estimate next year's revenue growth at 3.7%.

Valuation and Profitability

The company's current valuation metrics indicate a mixed picture, with a P/S Ratio of 0.76 and an EV/EBITDA of 13.35. The ROE is currently at -5.18%, and ROIC is at -0.6%, indicating room for improvement in profitability. However, the Dividend Yield is 2.88%, providing some support to the stock. With the current P/E Ratio at -21.22, the market is pricing in significant improvement in earnings.

Cost Savings and Efficiency

The company's cost savings efforts have been evident in the gross margin improvement, with more initiatives planned to optimize product costs and operating efficiency. The healthy trade inventory level and retailers' good position to react to good sell-in also bode well for future growth.

3. NewsRoom

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Johnson Outdoor (JOUT) Upgraded to Strong Buy: Here's Why

Mar -31

Source: zacks.com

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Buy 5 Small & Mid-Cap Outdoor Industry Stocks to Boost Your Portfolio

Mar -30

Source: zacks.com

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Are Consumer Discretionary Stocks Lagging Johnson Outdoors (JOUT) This Year?

Mar -26

Source: zacks.com

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Johnson Outdoors (NASDAQ:JOUT) versus Sportradar Group (NASDAQ:SRAD) Critical Survey

Mar -10

Source: defenseworld.net

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5 Leisure and Recreation Stocks to Buy Amid Strong Demand in 2026

Mar -06

Source: zacks.com

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What Makes Johnson Outdoor (JOUT) a Good Fit for 'Trend Investing'

Feb -27

Source: zacks.com

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Johnson Outdoors Announces Cash Dividend

Feb -27

Source: globenewswire.com

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Johnson Outdoors Inc. (JOUT) Hit a 52 Week High, Can the Run Continue?

Feb -11

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.18%)

6. Segments

Fishing

Expected Growth: 4.83%

Johnson Outdoors Inc.'s 4.83% growth in Fishing segment is driven by increasing demand for recreational fishing, innovative product offerings, and strategic acquisitions. Expanding distribution channels, favorable government regulations, and growing popularity of outdoor activities also contribute to the growth. Additionally, the company's focus on sustainability and eco-friendly products resonates with environmentally conscious consumers, further boosting sales.

Diving

Expected Growth: 7.43%

Johnson Outdoors Inc.'s 7.43% growth is driven by increasing demand for outdoor recreational products, particularly in fishing and camping segments. Strong brand recognition, innovative product offerings, and strategic acquisitions have contributed to the company's growth. Additionally, the trend towards outdoor activities and wellness has boosted sales, while effective cost management has improved profitability.

Camping

Expected Growth: 4.83%

Johnson Outdoors Inc.'s Camping segment growth of 4.83% is driven by increasing outdoor recreation participation, particularly among millennials and Gen Z. Growing demand for camping gear and accessories, such as tents, sleeping bags, and backpacks, also contributes to this growth. Additionally, the company's strategic investments in e-commerce and digital marketing have expanded its online presence, further boosting sales.

Watercraft Recreation

Expected Growth: 5.15%

Johnson Outdoors Inc.'s Watercraft Recreation segment growth of 5.15% is driven by increasing consumer spending on outdoor activities, rising popularity of kayaking and paddleboarding, and the company's strategic expansion into new markets and product lines, such as fishing kayaks and stand-up paddleboards.

Other/Corporate

Expected Growth: 4.83%

Johnson Outdoors Inc.'s Other/Corporate segment growth of 4.83% is driven by strategic investments in digital marketing, expansion of e-commerce platforms, and cost savings initiatives. Additionally, the company's focus on innovation and new product development has contributed to increased sales and revenue growth.

7. Detailed Products

Fishing

Johnson Outdoors Inc. offers a wide range of fishing products, including rods, reels, lures, and other fishing gear under its brands such as Minn Kota, Humminbird, and Cannon.

Watercraft

The company designs and manufactures watercraft, including canoes, kayaks, and paddleboards, under its Old Town and Necky Kayaks brands.

Scuba Diving

Johnson Outdoors Inc. offers scuba diving gear and equipment, including regulators, BCDs, and dive computers, under its SCUBAPRO brand.

Marine Electronics

The company provides marine electronics, including fish finders, GPS, and chart plotters, under its Humminbird and Minn Kota brands.

8. Johnson Outdoors Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Johnson Outdoors Inc. is medium due to the availability of alternative outdoor recreational products and services.

Bargaining Power Of Customers

The bargaining power of customers for Johnson Outdoors Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Johnson Outdoors Inc. is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for Johnson Outdoors Inc. is high due to the relatively low barriers to entry in the outdoor recreational products industry.

Intensity Of Rivalry

The intensity of rivalry for Johnson Outdoors Inc. is high due to the competitive nature of the outdoor recreational products industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.48%
Debt Cost 3.95%
Equity Weight 90.52%
Equity Cost 7.70%
WACC 7.34%
Leverage 10.47%

11. Quality Control: Johnson Outdoors Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Johnson Outdoors

A-Score: 5.8/10

Value: 8.9

Growth: 3.2

Quality: 3.5

Yield: 5.0

Momentum: 8.0

Volatility: 6.0

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JAKKS Pacific

A-Score: 4.5/10

Value: 6.3

Growth: 4.4

Quality: 4.6

Yield: 6.0

Momentum: 1.5

Volatility: 4.0

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Vista Outdoor

A-Score: 3.7/10

Value: 3.2

Growth: 4.9

Quality: 5.3

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

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American Outdoor Brands

A-Score: 3.6/10

Value: 8.1

Growth: 4.2

Quality: 4.6

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

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Xponential Fitness

A-Score: 3.5/10

Value: 8.5

Growth: 5.7

Quality: 5.2

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

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Inspirato

A-Score: 3.4/10

Value: 9.5

Growth: 2.6

Quality: 4.7

Yield: 0.0

Momentum: 2.5

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

46.56$

Current Price

46.56$

Potential

-0.00%

Expected Cash-Flows