Johnson Outdoors Inc. (NASDAQ:JOUT) stock traded higher on Friday after the company posted fiscal third-quarter earnings and revenue above analyst estimates, aided by a one-time tariff refund that management said is not expected to provide a similar boost going forward.
Tariff Refund Benefit Unlikely To Repeat
During the earnings call, Johnson Outdoors cautioned that the tariff-related benefit that boosted third-quarter results is unlikely to continue.
CFO Asad Rahman said the company does not expect additional meaningful tariff refunds and noted that, excluding the approximately $15 million refund received during the quarter, gross margin would have been modestly lower due to higher raw material costs.
He added that the company remains vigilant as the tariff landscape continues to evolve.
Earnings Beat Driven By Revenue Growth And Tariff Refund
Diluted earnings came in at $1.42 per share, topping the analyst consensus estimate of 68 cents. Revenue increased 5% year over year to $189.7 million, ahead of the consensus estimate of $186.2 million.
The company said revenue growth was supported by continued momentum across its leading brands, product innovation, digital commerce expansion and operational improvements.
Operating income rose to $18.3 million from $7.3 million a year earlier, primarily due to approximately $15 million in tariff refunds received during the quarter.
Gross margin expanded 770 basis points year over year to 45.3%, benefiting from the tariff refund. Excluding the refund, gross margin would have been slightly lower because of higher raw material costs.
Inventory increased to $188.3 million at quarter-end from $163.7 million a year earlier as the company prepared for stronger customer demand and sales activity.
CFO Transition
The company also announced that Asad Rahman joined Johnson Outdoors as chief financial officer on June 30, succeeding longtime CFO Dave Johnson, who is expected to retire later this year.
Segment Performance
The Fishing segment posted 7% year-over-year revenue growth, with Minn Kota maintaining its leadership in trolling motors, supported by steady demand and continued investment in fishing technology.
The Diving business grew revenue 10% year over year, driven by strong demand for regulators and buoyancy compensators. The company said digital initiatives continue to strengthen SCUBAPRO’s consumer engagement and support retail partners globally.
Revenue in the Camping and Watercraft segment declined 13% from a year earlier due to weaker market conditions.
Cash Flow And Balance Sheet
Johnson Outdoors ended the quarter with $175.2 million in cash and short-term investments, up from about $161 million a year earlier.
Cash used in operating activities totaled $3.5 million during the first nine months of fiscal 2026, compared with cash provided by operating activities of $31.3 million in the prior-year period.
JOUT Price Action: Johnson Outdoors shares were up 2.65% at $48.81 at the time of publication on Friday, according to Benzinga Pro data.
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