DRIVING STRENGTH THROUGH INNOVATION

PRIORITIZING INNOVATION & EFFICIENCY

AFTER A SLOW START TO FISCAL 2025, JOHNSON OUTDOORS SAW DOUBLE-DIGIT GROWTH IN THE YEAR’S SECOND HALF. Total revenue was essentially flat at $592.4 million versus fiscal 2024 revenue of $592.8 million.

• FISHING revenue increased 2 percent due primarily to the success of innovative new products.
• DIVING sales rose 2 percent due to modest market improvements and a favorable foreign currency translation impact on sales.
• CAMPING & WATERCRAFT RECREATION revenue decreased 13 percent, primarily due to the exit of the Eureka! brand. Excluding that impact, this segment grew by 2 percent.

Total company operating loss was $16.2 million in fiscal 2025, compared to an operating loss of $43.5 million in the prior fiscal year. Gross margin increased from 33.9 percent in fiscal 2024 to 35.1 percent, primarily due to improved overhead absorption and reduced inventory reserves, as well as cost savings initiatives that helped offset increases in materials costs.

Operating expenses decreased from the prior year by $20.2 million. Key drivers of this change were the write-off of goodwill in 2024, reduced promotional spending, and lower deferred compensation costs between years.

Loss before income taxes was $9.3 million in fiscal 2025, compared to a pretax loss of $29.9 million in fiscal 2024. The improvement was mainly due to the increase in gross margin and the decrease in operating expenses.

Net loss for the fiscal year was $34.3 million, or $3.35 per diluted share, versus net loss of $26.5 million, or $2.60 per diluted share, in fiscal 2024. We saw income tax expense of $25.0 million in 2025, compared to a tax benefit of $3.3 million in 2024. Our fiscal 2025 effective income tax rate was impacted by a $25.9 million non-cash reserve on U.S. deferred tax assets. This reserve reflects our
assessment of the realizability of deferred tax assets in light of recent operating losses; it may be released when profitability improves.

For the third year in a row, we drove positive cashflow from operations. We continued to reduce inventory levels through our focus on operational efficiency. Looking ahead, we’ll continue to strategically manage costs while at the same time making critical investments to strengthen the business.