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Johnson Outdoors Inc.
8/1/2025
Hello everyone and welcome to the Johnson Outdoors third quarter 2025 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 the listen-only mode. After the prepared remarks, the question and answer session will begin. If you would like to ask a question during that time, please press the star and then the numbers 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.
Good morning, and thank you for joining us for our discussion of Johnson Outdoors results for the 2025 fiscal third 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 this call, please contact Dave Johnson or myself. It is now my pleasure to turn the call over to Helen Johnson Leopold.
Good morning, everyone. Thank you for joining us. I'll begin by sharing perspective on our third 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. Sales in our third fiscal quarter ending June 2025 increased 5% to $180.7 million compared to $172.5 million in the prior year third quarter. Operating profit was up significantly to $7.3 million versus an operating loss in the previous third quarter. While the marketplace continues to fluctuate, our positive results this quarter reinforce the critical importance of our focus and investment in market-leading innovation to continued growth and success of our brands. In our fishing business, demand for Hummingbird's new fish finder technology, Mega Live 2 sonar, and our new Explorer fish finder unit has been exceeding expectations. I'm excited to announce that a few weeks ago, our Explore series captured Best in Electronics honors at ICAST, the world's most prestigious fishing show. Also, Boating Magazine recently awarded our Minn Kota brand the Marine Power Innovation Award for our Riptide Instinct brushless trolling motor. We're excited by the response to our innovation in this business, and we will continue to invest in being an innovation leader to drive future growth. In our camping and watercraft business, both our Old Town and Jetboil brands remain strong leaders in their markets. Orders for Jetboil's newest fast-boil cooking systems with features building on lightened fast-boil times and fuel efficiency continue to outpace expectations. And while the watercraft marketplace is still weak and the industry struggles, Old Town remains resilient and continues to build on its industry-leading innovation. Results in our diving business were slightly improved amid stronger market conditions during the third quarter. However, the diving marketplace remains challenged with uncertainties in the global economy and consumer travel, and we continue to work well to be well-positioned in diving for the future. We continue our integration work with the long-term supplier we purchased at the beginning of this fiscal year, and we are confident it will deliver the benefits we planned for. We are also focused on finding ways to drive more operational efficiencies across the business. Overall, we are pleased with our positive third quarter results and the success of our innovation. At the same time, global macroeconomic challenges continue to drive uncertainties in the marketplace. We can continue to invest and execute on our strategic priorities, innovation, operational efficiencies, and e-commerce, and our resiliency as a company is further bolstered by our debt-free balance sheet and cash position. 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 the financials.
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