Johnson Outdoors Inc. (NASDAQ:JOUT), a global leader in outdoor recreation equipment and technology, reported fiscal first-quarter results for the period ended Jan. 02, 2026. Revenue increased year over year, losses narrowed, and the company exceeded analyst expectations for both sales and EPS.
Net sales increased 31% year-over-year to $140.935 million, surpassing the $123.948 million estimate, while Johnson Outdoors posted a GAAP net loss of $3.3 million, or $(33) cents per diluted share, which exceeded the $(45) cents estimate, compared with a net loss of $15.3 million, or $(1.49) per diluted share, a year earlier.
The company is preparing for the main selling season of its warm-weather outdoor recreation products in the second and third fiscal quarters.
Profitability and Margins
Operating loss narrowed to $(2.9) million from $(20.2) million, and gross margin improved to 36.6% from 29.9%, primarily due to better overhead absorption and cost-saving measures.
Operating expenses rose to $54.5 million, up $2.1 million from the prior year, mainly due to higher sales-volume-related costs, partially offset by lower warranty expenses.
“We’re pleased with the positive start to our fiscal year. We saw markets stabilize and we continue to get solid reception to our innovation. Our critical investments in new products and digital commerce, combined with our ongoing hard work on improving profitability, are essential to position us for success,” said Helen Johnson-Leipold, Chairman and CEO.
“We continue to benefit from our ongoing efforts to improve operational efficiency, enabling us to improve our margins and continue to reduce our inventory levels,” said David W. Johnson, CFO. “Looking forward, we will continue to strategically manage costs while protecting investments to strengthen the business.”
Segment Performance
Fishing net sales rose to $112.370 million from $82.472 million, with an operating profit of $7.520 million compared with an operating loss of $(8.261) million. Revenue increased 36%, driven mainly by new product launches and improved trade inventory levels.
Camping & Watercraft Recreation net sales were $10.601 million versus $9.451 million, and operating loss widened to $(1.118) million from $(0.646) million.
Diving net sales rose to $17.974 million from $15.684 million, while operating loss narrowed to $(0.336) million from $(0.908) million.
Balance Sheet and Outlook
Johnson Outdoors reported cash, cash equivalents, and short-term investments of $130.731 million as of Jan. 2, 2026, up from $101.617 million. Inventories were $183.940 million, down from $201.606 million.
The company cited risks including “changes in U.S. trade policies, tariffs” in its Safe Harbor statement.
JOUT Price Action: Johnson Outdoors shares fell 2.3% to close at $48.38 on Thursday. Despite the pullback, the stock remains within striking distance of its 52-week high of $50.99, according to Benzinga Pro data.
Photo by Wonderful Nature via Shutterstock
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