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May 8, 2026 12:50 PM

Johnson Outdoors' Strong Quarter Comes With A Catch: Mounting Cost Pressures

Johnson Outdoors Inc. (NASDAQ:JOUT), the outdoor recreation products maker, reported stronger-than-expected second-quarter results on Friday, driven by higher sales, margin expansion, and improved operating income.

Strong Quarterly Results Beat Expectations

Net sales rose 16% year over year to $194.5 million, topping analyst estimates of $185.1 million. Earnings per share came in at 89 cents, ahead of Wall Street expectations of 87 cents.

Operating income improved to $10.3 million from $4.9 million a year earlier. Gross margin expanded to 38.8% from 35% in the prior-year quarter, helped by improved manufacturing absorption and ongoing cost-reduction efforts.

The company ended the quarter with $107.9 million in cash and ...