DRIVING STRENGTH THROUGH INNOVATION

FOCUSING ON BUILDING A STRONG FOUNDATION

Marketplace and competitive challenges resulted in lower sales and an operating loss for our 2024 fiscal year. Total company revenue fell 11 percent to $592.8 million versus fiscal 2023 revenue of $663.8 million.

• Fishing revenue decreased 8 percent due to market and competitive dynamics.
• Diving sales were down 13 percent, driven by softening global demand.
• Camping revenue decreased 17 percent due to declines in demand and from revenue of Military and Commercial Tents, which were previously divested.
• Watercraft sales were down 29 percent as demand decreased.

Total company operating loss was ($43.5 million) in discal 2024, versus operating profit of $11.7 million in the prior fiscal year. Gross margin decreased to 33.9 percent from 36.8 percent. Cost savings initiatives were more than offset by unfavorable absorption of fixed overhead costs driven by lower sales volumes and a shift toward lower-margin products.

Operating expenses increased from the prior year by $12.2 million due primarily to a non-cash goodwill impairment charge of $11.2 million, increased bad debt reserves of $2.5 million, and increased severance costs of $1.5 million. These increases were partially offset by lower incentive compensation and professional services expenses.

Loss before income taxes was ($29.9 million) in fiscal 2024, compared to profit of $25.8 million in fiscal 2023. Other income decreased slightly from $9.7 million in the prior year to $9.0 million in the current year.

Net loss for the fiscal year fell to ($26.5 million), or ($2.60) per diluted share, versus net income of $19.5 million, or ($1.90) per diluted share, in fiscal 2023. The effective tax rate was 11.1 percent compared to the previous fiscal year's rate of 24.4 percent.

Throughout 2024, we focused resources on our strategic priorities and worked hard to drive operational cost savings. Looking forward, we will continue to strategically manage our cost structure while protecting investments to strengthen the business.