DRIVING STRENGTH THROUGH INNOVATION

JOHNSON OUTDOORS SEEKS TO OUTPERFORM A CHALLENGING MARKETPLACE

Total company revenue for fiscal 2023 fell 11 percent to $663.8 million, versus fiscal 2022 revenue of $743.4 million. Factors in the year-over-
year comparison included:

• Fishing revenue decreased 6 percent as demand moderated to pre-pandemic levels.
• Diving sales increased 8 percent over the prior fiscal year, with strong performance in a recovering market.
• Camping decreased $25.0 million due primarily to decline in demand as well as the sale of the Military and Commercial tents product lines in the fiscal second quarter.
• Watercraft Recreation sales decreased $27.2 million, reflecting significant reductions in market demand.

Total operating profit was $11.7 million in fiscal 2023, comparing unfavorably to operating profit of $66.3 million in the prior fiscal year due to lower sales volumes and a $27.3 million increase in operating expenses. Warranty expense, investments in research and development, and marketing and professional services further drove the operating expense increase.

Profit before income taxes was $25.8 million in fiscal 2023, compared to $58.9 million in fiscal 2022. Net income for the fiscal year fell to $19.5 million, or $1.90 per diluted share, a 56 percent decline versus $44.5 million, or $4.37 per diluted share, in the last fiscal year. The effective tax rate was 24.4 percent compared to the previous fiscal year’s rate of 24.4 percent. Heading into fiscal 2024, we’re focused on managing higher-than-normal inventories and improving profitability with a defined cost savings program and prudent expense management. The balance sheet remains debt-free, and our healthy cash position enables us to continue investing in strategic opportunities to strengthen the business and consistently pay dividends to shareholders.