Johnson Outdoors Inc.

Hello and welcome to the Johnson Outdoors second quarter 2024 earnings conference call. Today's call will be led by Helen Johnson-Leopold, Johnson Outdoors chairman and chief executive officer. Also on the call is David Johnson, vice president and chief financial officer. Prior to the question and answer session, all participants will be placed in a listen-only mode after the prepared remarks. The question and answer session will begin. If you'd like to ask a question at that time, please press star 1-1 on your telephone keypad. This call is being recorded. Your participation implies consent to our recording this call. If you do not agree to these terms, simply drop off the line. I would now like to turn the call over to Pat Penman from Johnson Outdoors. Please go ahead, Ms. Penman.

Thank you. Good morning, and thank you for joining us for our discussion of Johnson Outdoors results for the 2024 fiscal second quarter. If you need a copy of today's news release, it is available on our website at johnsonoutdoors.com under Investor Relations. I also need to remind you that this conference may contain forward-looking statements. These statements are made on the basis of our current views and assumptions and are not guarantees of future performance. Actual events may differ materially from those statements due to a number of factors, many beyond Johnson Outdoors control. These risks and uncertainties included those listed in our press release and filings with the Securities and Exchange Commission. If you have any additional questions following the call, please contact Dave Johnson or myself. It is now my pleasure to turn the call over to Helen Johnson-Leopold.

Thanks, Pat. Good morning, everyone, and thank you for joining us. I'll begin by addressing our results and giving perspective on the performance, and then I'll share the outlook for the business. Dave will provide more detailed financial review, and then Leo will take your questions. Sales in our second fiscal quarter and in March 2024 declined 13% to $175.9 million, compared to $202.1 million in the prior year's second quarter. Year-to-date company sales decreased 17% over last year's fiscal six-month period. The company reported an operating loss of $250,000 for the second quarter compared to an operating profit of $11.4 million in the prior year's second quarter. For the year-to-date period, total company operating loss declined to $200,000 compared to an operating profit of $16.9 million for the prior year-to-date period. Net income for the second quarter was $2.2 million or 21 cents per diluted share versus $14.9 million or $1.45 per diluted share in the previous year's second quarter. Net income during the first months with $6.1 million or $0.59 per diluted share versus $20.7 million or $2.02 per diluted share in prior fiscal year-to-date period. Continued tough marketplace conditions significantly impacted our second quarter results. While inventory levels at retail are starting to improve, We have been facing increased competitive activity across our categories, requiring additional promotion in pricing actions. At the same time, economic uncertainty continues to impact consumer buying behavior. We expect these challenges to continue in the season ahead. In the midst of this tough environment, we are prioritizing critical investments in our businesses to navigate challenges in the short term and position us for marketplace success in the long term. We have strong brands that are leaders in our categories. We believe in the potential of these categories, and we are looking for opportunities to facilitate growth. Innovation is and always has been key to our success in the marketplace and remains a strategic priority to create consumer-focused products and technology that delivers the best outdoor experience as possible. We are investing in marketing and promotions and supporting our new product launches like the new Minn Kota Quest trolling motor line, which is seeing positive response from the trade. Striking our business operations and improving profitability are also a critical focus. We put a cost savings program in place, and we are evaluating our cost structure for additional efficiency opportunities. We have been working hard to reduce inventory to more normal levels. We have a lot more work to do, but we are starting to see progress from these efforts. This is a tough time, and we are not satisfied with where we are, but we are taking actions to improve our position in the market, and we will continue to invest in the long-term profitable growth of our brands. Now we'll turn the call over to Dave for more details on financials.