2/3/2025

speaker
Operator
Conference Call Operator

If you would like to ask a question during that time, please press star 11 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.

speaker
Pat Penman
Director of Investor Relations

Thank you. Good morning, and thank you for joining us for our discussion of Johnson Outdoors results for the 2025 fiscal first 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 call 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 include those listed in our press release and filings with the Securities and Exchange Commission. If you have 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.

speaker
Helen Johnson-Leopold
President and CEO

Thanks, Pat. Good morning, everyone. Thank you for joining us. I'll begin by sharing perspective on our first quarter performance as well as an update on the strategic priorities for our businesses. Dave will review the financial highlights and then we'll take your questions. We continue to face ongoing marketplace challenges with a cautious retail and trade channel environment and competitive pressures. As we said during our last quarterly call, we are not seeing indicators these conditions are going away anytime soon, and our first quarter results reflect that. We remain focused on aggressively leaning into our strategic priorities, innovation, operational efficiencies, and e-commerce, and making the necessary changes for the future growth. We're making inroads on these key drivers, and I'd like to share some of our progress on each of them. In this highly competitive outdoor recreation marketplace, we are strengthening our innovation capability as it is one of the most critical elements to driving growth. For example, in our fishing business, we recently launched new technology in our Hummingbird brand and we've seen positive reception from our retail partners so far with consumer enthusiasm beginning to build as well. These products start shipping in January and are not reflected in our first quarter results. We're excited about the momentum as we continue to work hard to give anglers the best fishing experiences possible. In diving, we recently purchased a company that has been a longtime supplier for our Scuba Pro brand, and has been an integral part of a number of our past successful innovations in that business. In addition to being a catalyst for future Scuba Pro innovation, this acquisition is a vertical integration that allows us to accelerate our efforts in simplifying our diving business and enabling more efficient operational footprint. Improving profitability and strengthening our business operations continue to be a strategic priority, and we've been working hard to drive operational and product cost savings across all of our businesses. In addition, we are focused on managing our inventory level. Dave will give more details on this. We also have heard the news around the new tariffs. As you know, we are an American company. We pride ourselves on our U.S.-based manufacturing and operations, which we have expanded in the past few years. For example, we have operations or manufacturing in multiple states, including Maine, Georgia, Alabama, California, Minnesota, and Wisconsin. Regarding tariffs, we continue to discuss the implications and have already started on our mitigation plans. Leveraging our American footprint will be an important part of this plan. Another key strategic priority is enhancing our ability to drive growth through e-commerce. We are investing in a digital commerce center of excellence, which adds expertise and capabilities that will allow us to accelerate sales and profitability. As we navigate this tough environment, we will continue to invest and execute on our strategic priorities. We are confident these are the right things to position us for future healthy, profitable growth. Now I'll turn the call over to Dave for more details on financials.

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Investor presentation