Johnson Outdoors Inc. (NASDAQ: JOUT) shares acquired much momentum Friday, hours after the Racine, Wisconsin-based company announced higher revenue and earnings for the 2020 fiscal year ending October 2.
High demand for products in Fishing, Camping and Watercraft Recreation extended into the industry’s seasonally slow fiscal fourth quarter, driving higher sales and operating profit year-over-year for a strong finish to a challenging year.
Total company revenue grew 6% to $594.2 million versus fiscal 2019 revenue of $562.4 million. Operating profit was $71.1 million in fiscal 2020, which compared favorably to operating profit of $63.8 million in the prior fiscal year.
Gross margins remained steady as improved cost absorption through higher volumes and a strong product mix helped offset a $1.0 million increase in tariff costs. Operating expenses increased $7.9 million versus the prior year due largely to volume-related expenses, but declined as a percentage of sales versus fiscal 2019.
Net income for the fiscal year improved to $55.2 million, or $5.47 per diluted share, a 7% improvement versus $51.4 million, or $5.11 per diluted share, in the last fiscal year. The effective tax rate was 25.1% compared to the previous fiscal year’s rate of 22.7%.
Said CEO Helen Johnson-Leipold, “The 2020 fiscal year was like no other year in our history. We started the year with a very strong first quarter, but the onset of the pandemic and the initial stay-at-home mandates cut short our momentum and significantly impacted our second and third quarters, the heart of our primary selling season.”
JOUT shares popped $10.68, or 11.8%, to $101.23.