Johnson Outdoors (JOUT) 3 Feb 232023 Q1 Earnings call transcript

Hello, everyone, and welcome to the Johnson Outdoors First Quarter 2023 Earnings Conference Call. Today's call will be led by Helen Johnson-Leipold, 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. is call This Instructions] being recorded. [Operator

implies participation consent to call. this recording our Your

not terms, to the you agree If do these line. simply off drop

Pat off Penman might I call on mute. Please to like your be go ahead, Penman line ahead. Penman to is go Ms. would Outdoors. Please from Penman. turn Ms. Ms. Johnson mute. now over the

you results Hey. Thank quarter. Johnson for Outdoors for our XXXX us you. Good for morning, discussion joining everyone. first the Thank fiscal of

today's news website of it you is Investor our copy If need on release, at Relations. available a under johnsonoutdoors.com

I events Johnson also and statements assumptions conference forward-looking Outdoors' differ statements those may beyond our need a are to may These and Actual this views are remind materially of from not of you statements. factors, to basis many current call control. due that guarantees made of number the on performance. contain future

with and These and Exchange risks press our and release in uncertainties those Securities the listed filings include Commission.

questions please you following If the Johnson additional contact or call, have myself. Dave

It my Helen to the Johnson-Leipold. turn is call pleasure now over to

review for then Thanks, businesses. thank on joining with begin the I'll share the you and then overview Pat. we'll of performance take outlook and your us. an quarter, will perspective and for Dave and morning, financial Good highlights, I'll our questions.

first year's $X.XX or million in the year quarter. million share Net first share XXXX our first rose the to prior in was $X.XX quarter. XX% diluted fiscal $X.X or December in quarter ending diluted versus compared income Sales million to previous $XXX.X per $XXX.X million per quarter $XX.X for

costs impacting hard prior fiscal pressures, including million versus increases profitability. $X.X We've cost and the reduction million all strategies mitigate year in supply to to decreased environment, challenging manage the cost with working XX% chain while avenues in profit to price Operating been first efforts. quarter, significantly evaluating inventory $XX.X

of availability We supply working orders In have priority. a and our allowing manage continuing pipeline orders. to chain customer component our solid still to through supply fill and remains continued more ease, business, that to Fishing challenges us we're

continued to to rebounds guiding, from as pandemic most world. the market In momentum continue in equity our we the levels, brands SCUBAPRO see trusted the benefit as dive depressed we from and

businesses, softening demand our inventory good seeing news Camping especially we in and at in that are brand to Jetboil. market recreation retail. and levels have some positions, Watercraft and is higher we Town continue Old In strong The

The thing to have continues brands. outdoor important to growth of Innovation brought participants our recreation, critically for last us. and years good a be is success new into few our which

understanding translating consumers' new into ongoing product needs existing investment and evolving new and success both our Our back remains into focus.

all new on products. businesses, we're working of pipeline our exciting of In

While orders to into our we're tell head it's up, supporting focused still primary consumer our on early and and end the behavior we season buying filling monitoring how customer season. as brands selling too will

As always, long-term business brands growth. our team for takes a and long-term view positioning our

I'll Now to Dave a over highlights. financial the for review of turn the call

morning, the Thank items highlight everyone. I few to Good want you, quarter. from a Helen.

in Fishing. from costs sales As inventory. cost X.X due to availability of are first gross customer increased to down especially quarter to Quarter's primarily us more continue Helen of allowing mentioned, to points fill material supply orders, in margin year's and we're due is XX.X% freight high the improve, seeing last that

challenged to all but profitability. concern. continue work a remains We're options cost inventory. expect through continue to in we see coming higher we margins somewhat, as Helen our eased costs as to starting improve be evaluate months our mentioned, the to And to we Inflation

expenses the the Operating sales quarter $XX.X increase. versus Higher million increased first driven of drove expenses the in first year quarter. prior some volume

health expense, services costs professional between the compensation We an experienced increase costs quarters. higher higher care in also and

lower year the in prior first prior fiscal taxes the XX.X%. million income the million, driven income quarter gross margin from expenses. for XX% effective XX% $X.X the first operating before million The to $X.X quarter $XX.X versus first down rate year increased was the was of and quarter. Profit by tax prior compared Net was quarter, rate

early will shake demand on managing felt season out, tell inventory monitoring how It but to the focused too levels. our proactively we're and

the to have balance value in continue debt remain invest to deliver We long-term ability cash opportunities no and our position to confident and to pay the in out enabled our our on cash sheet shareholders. to us dividends We strengthen consistently business.

call Operator? the to operator the Q&A the over for turn I'll session. Now

from Instructions] Thank Lebiedzinski [Operator question line first Our come Sidoti. will of Anthony you. from the

open. line Your is

the taking you Good for morning, and questions. thank

the maybe just versus talk just or give a fiscal So guys sounds additional be would Fishing, you It about expand first, it's could ago? us unfulfilled orders very maybe that you if is helpful. where the your is it now end year year about like could pipeline of -- backlog mostly for but mostly you directionally, can color, versus

availability Fishing, supply our as supply you meet the going we're are in, there we in good as to in still there It's but orders. able as the forward, continue continue in as we Yeah. orders momentum, working We've pre-season season that feel good we to far solid be pipeline comes as there got move know, forward. a and to are we're those going goes mode, but to that continuing on

on it. good shape that So end of

retailers you are early Obviously, it's are season. order far recreation. tied or still in be seeing thus may outdoor to I cancellations orders? seeing -- you maybe some know you are Okay. their the as weather And postponing warm far? as What any

but far retailers? just I guess, your you're what it's on probably from hearing So consumer as to side, the as early too wondering tell,

to cautious the all tough now predict being is a one. trying think are retailers and season right I Well,

cautious. there's So

I demand their has solid side, pretty even slowed and the at think Camping they've a Watercraft got and On retail. inventory

in, there's read. waiting a think out then that's I to the So and there. can we for come But season caution get

Understood. Okay.

segments. yeah, smaller So it Diving versus sounds are and so like shape the Fishing better two in

much reported revenue and increases? about think for increases quarter you talk the talked I you pricing then about Can to the well. whether have or as Okay. plans any contributed price additional in not you And how price just

price increase, taken months few a the increases price of tranches XX I mean last we've the or so. Yeah. over

I as number significantly total be, And mean, quarter. the as don't at pricing quarter have the unit we going obviously, as I everything that back margins the to see on effect volume this that for up, we include last just we'll to But our versus price look quarter, reductions. like said, to would So for it increase and did we'd strategies get cost out. where well forward point to

it. Got

of inventory position? would at peak And be high do then And you're inventory, in inventory? what able point your at now Okay. work terms think say to you when you the to cost through we're the able

Yeah.

-- those our to We balanced start the starting expect key down to in that with more inventory our working may to to season down selling back inventory we're start get numbers. April with go to start start start further, in see to normal costs gross incrementally to the unless see increase to our levels. We'll coming -- even have moderated, margin start quarters. see we improve we'll and they But

take we'll will get into So see that probably -- improvement next be through, the fiscal but year quarter. whole to going start the to that will

fees talked you professional to hear. expense then and services on higher so side, And good That's insurance health on. about operating your Okay. and

think to expense forward, volume the if expenses, for how your we sales the wondering in you that of going the the in driven contribute And did overall back should how about increase rest fiscal much quarter? out Just year? growth expenses the

good related. quarter, mean the significant. a expect wouldn't we'll Yeah, some of in increase year I this anything the see increases our in Yeah. volume moderate that in half portion, uses in of balance expenses. operating I almost

not just and and here versus of and due be So to headcount probably talking the merit expenses, that for the we're year kind big incrementally quarter, but they it's numbers compensation thing. last will this year higher --

it. Got

Okay. Well, much that’s you had. luck. of I best all very and Thank

you. Thank

Thank you.

queue. I'd not to showing back And the any to Johnson-Leipold like call in Helen any over questions remarks. turn further closing I'm for the

thank for day. hope I us Well, and you have Okay. great all joining a you today,

today's for call. you this participating. Thank conference And concludes

a You disconnect. have may day. now Everyone, great