World News: 10:00 GMT Friday 7th December 2018. [Johnson Outdoors Inc. via Globe Newswire via SPi World News]
RACINE, Wis., Dec. 07, 2018 (GLOBE NEWSWIRE) -- a leading global innovator of outdoor recreation equipment and technology, today announced all-time high revenue and earnings for the second consecutive fiscal year. Strong marketplace demand for new products in the Company’s core Fishing and Diving brands propelled an 11 percent increase in sales as operating profit grew 38 percent and net income rose 16 percent over the prior fiscal year. The seasonally slow fourth quarter net sales nearly equaled prior year results.
“Unprecedented growth in our flagship Fishing business has driven record results two years in a row on the strength of revolutionary, consumer driven innovation. Our goal is consistent bigger, better new product success like this across our entire brand portfolio,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer.
“Importantly, deeper, richer consumer understanding is at the core of everything we do. Going forward, our ability to connect with more consumers in new, more meaningful ways will enable us to fully leverage and maximize investments in digital transformation, marketing sophistication and ecommerce to enhance performance in all segments and channels. Much progress has been made in transforming Johnson Outdoors for future success in a changing marketplace. More work and more investment will be needed to ensure continued sustainable growth and profitability.”
Operating profit soared to a record-high $63.0 million, a 38 percent increase over $45.6 million in the prior fiscal year, due to significantly higher sales volume and margin improvement year-over-year. Higher volume-related expenses and increased digital marketing expenditures and R&D investment primarily accounted for the year-over-year uptick in operating expense dollars. As a percent of sales, fiscal 2018 operating expense declined versus fiscal 2017.
Net income for the fiscal year increased 16 percent to $40.7 million, or $4.05 per diluted share, versus $35.2 million, or $3.51 per diluted share, last fiscal year. The effective tax rate of 40.3 percent reflects $8.4 million in charges resulting from changes in accounting for taxes prompted by U.S. tax reform legislation enacted during the fiscal year.
“Looking ahead to next year, while we expect revenue to grow, recently enacted tariffs are estimated to have a negative impact of $6.0 - $9.0 million on fiscal 2019 operating profit, which includes foreseeable mitigation efforts at this time. In addition, we expect our fiscal 2019 tax rate to decline, reflecting the reduction in the US federal corporate income tax rate,” said David W. Johnson, Chief Financial Officer.
Globe Newswire: 10:00 GMT Friday 7th December 2018
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