SEC Form 10-Q filed by Johnson Outdoors Inc.

8/1/25 1:27:19 PM ET

$JOUT

Recreational Games/Products/Toys

Consumer Discretionary

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jout-20250627

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 27, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission file number 0-16255

JOHNSON OUTDOORS INC.

(Exact name of Registrant as specified in its charter)


Wisconsin						39-1536083
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

555 Main Street, Racine, Wisconsin 53403

(Address of principal executive offices)

(262) 631-6600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, $.05 par value per share	JOUT	NASDAQ Global Select MarketSM

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act: Large accelerated filer ☐Accelerated filer ☒Non-accelerated filer ☐Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 24, 2025, 9,164,729 shares of Class A and 1,207,534 shares of Class B common stock of the Registrant were outstanding.


			JOHNSON OUTDOORS INC.


Index			Page No.

PART I	FINANCIAL INFORMATION

	Item 1.	Financial Statements

		Condensed Consolidated Statements of Operations - Three and nine months ended June 27 , 2025 and June 28 , 2024	- 1

		Condensed Consolidated Statements of Comprehensive Income (Loss) - Three and nine months ended June 27 , 2025 and June 28 , 2024	- 2

		Condensed Consolidated Balance Sheets - June 27 , 2025, September 27, 2024, and Ju ne 28 , 2024	- 3

		Condensed Consolidated Statements of Shareholders' Equity - Three and nine months ended June 27 , 2025 and Ju ne 28 , 2024	- 4

		Condensed Consolidated Statements of Cash Flows - Nine months ended June 27 , 2025 and June 28 , 2024	- 6

		Notes to Condensed Consolidated Financial Statements	- 7

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	- 23

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	- 28

	Item 4.	Controls and Procedures	- 28

PART II	OTHER INFORMATION

	Item 1.	Legal Proceedings	- 29

	Item 1A.	Risk Factors	- 29

	Item 5.	Other Information	- 29

	Item 6.	Exhibits	- 29

		Signatures	- 30

		Exhibit Index	- 31


Index			JOHNSON OUTDOORS INC.

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


	Three Months Ended				Nine Months Ended
(thousands, except per share data)	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024
Net sales	$	180,655	$	172,472	$	456,653	$	486,972
Cost of sales	112,728		110,650		297,677		310,865
Gross profit	67,927		61,822		158,976		176,107
Operating expenses:
Marketing and selling	37,553		41,109		102,581		111,040
Administrative management, finance and information systems	15,423		13,935		41,134		42,302

Research and development	7,621		7,284		23,269		23,478
Total operating expenses	60,597		62,328		166,984		176,820
Operating profit (loss)	7,330		(506)		(8,008)		(713)
Interest income	(927)		(1,123)		(2,585)		(3,178)
Interest expense	49		37		164		115
Other (income) expense, net	(2,292)		(327)		(1,318)		(7,468)
Profit (loss) before income taxes	10,500		907		(4,269)		9,818
Income tax expense (benefit)	2,758		(715)		975		2,085
Net income (loss)	$	7,742	$	1,622	$	(5,244)	$	7,733

Weighted average common shares - Basic:
Class A	9,066		9,024		9,052		9,007
Class B	1,208		1,208		1,208		1,208
Participating securities	19		17		20		17
Weighted average common shares - Dilutive	10,293		10,249		10,280		10,232
Net income (loss) per common share - Basic:
Class A	$	0.75	$	0.16	$	(0.52)	$	0.75
Class B	$	0.72	$	0.16	$	(0.52)	$	0.75
Net income (loss) per common share - Diluted:
Class A	$	0.75	$	0.16	$	(0.52)	$	0.75
Class B	$	0.75	$	0.16	$	(0.52)	$	0.75

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Index			JOHNSON OUTDOORS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited)


	Three Months Ended				Nine Months Ended
(thousands)	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024
Net income (loss)	$	7,742	$	1,622	$	(5,244)	$	7,733
Other comprehensive income (loss):
Foreign currency translation	5,192		(439)		1,410		241
Unrealized (loss) gain on available-for-sale securities, net of tax	(8)		14		(13)		98
Change in pension plans, net of tax	9		6		25		21
Total other comprehensive income (loss)	5,193		(419)		1,422		360
Total comprehensive income (loss)	$	12,935	$	1,203	$	(3,822)	$	8,093

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Index			JOHNSON OUTDOORS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)


(thousands, except share data)	June 27, 2025		September 27, 2024		June 28, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	158,691	$	145,498	$	126,823
Short term investments	2,331		16,541		21,546
Accounts receivable, net	81,993		40,649		79,593
Inventories	163,732		209,788		223,160
Other current assets	13,326		16,252		9,883
Total current assets	420,073		428,728		461,005
Investments	—		—		2,237
Property, plant and equipment, net of accumulated depreciation of $205,136, $192,890 and $184,519, respectively	94,335		96,922		95,929
Right of use assets	45,038		47,547		49,017
Deferred income taxes	25,360		23,420		23,021
Goodwill	10,162		—		11,160
Other intangible assets, net	9,635		8,320		8,331
Other assets	29,870		30,275		29,125
Total assets	$	634,473	$	635,212	$	679,825
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	43,478	$	36,077	$	43,153
Current lease liability	7,793		7,528		7,648
Accrued liabilities:
Salaries, wages and benefits	16,999		12,408		14,801
Accrued warranty	12,443		10,211		10,932
Income taxes payable	1,676		2,109		—
Accrued discounts and returns	8,452		7,430		7,231
Accrued customer programs	4,941		4,200		4,347
Other	9,780		10,481		11,181
Total current liabilities	105,562		90,444		99,293
Non-current lease liability	39,137		41,806		43,124
Deferred income taxes	2,025		1,913		1,880
Retirement benefits	1,682		1,645		1,588
Deferred compensation liability	28,618		29,092		27,795
Other liabilities	6,985		6,888		7,476
Total liabilities	184,009		171,788		181,156
Shareholders’ equity:
Common stock:
Class A shares issued and outstanding: 9,164,729, 9,093,978 and 9,093,582, respectively	460		456		456
Class B shares issued and outstanding: 1,207,534, 1,207,760 and 1,207,760, respectively	61		61		61
Capital in excess of par value	91,422		90,146		89,846
Retained earnings	354,205		369,592		407,223
Accumulated other comprehensive income	7,386		5,964		3,683
Treasury stock at cost, shares of Class A common stock: 48,775, 42,654 and 35,353, respectively	(3,070)		(2,795)		(2,600)
Total shareholders’ equity	450,464		463,424		498,669
Total liabilities and shareholders’ equity	$	634,473	$	635,212	$	679,825

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Index			JOHNSON OUTDOORS INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(unaudited)


Nine Months Ended June 27, 2025
(thousands except for shares)	Shares	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock
BALANCE AT SEPTEMBER 27, 2024	10,301,738	$	517	$	90,146	$	369,592	$	5,964	$	(2,795)
Net loss	—	—		—		(15,290)		—		—
Dividends declared	—	—		—		(3,362)		—		—


Award of non-vested shares	32,121	1		(1)		—		—

Stock-based compensation	—	—		507		—		—		—

Currency translation adjustment	—	—		—		—		(4,915)		—
Unrealized loss on available-for-sale securities, net of tax	—	—		—		—		(1)		—
Change in pension plans, net of tax of $3	—	—		—		—		9		—
Non-vested stock forfeitures	(3,690)	—		200		—		—		(200)
Purchase of treasury stock at cost	(2,657)	—		—		—		—		(88)

BALANCE AT DECEMBER 27, 2024	10,327,512	$	518	$	90,852	$	350,940	$	1,057	$	(3,083)
Net income	—	—		—		2,304		—		—
Dividends declared	—	—		—		(3,372)		—		—

Award of non-vested shares	38,548	3		(3)		—		—		—
Stock-based compensation	—	—		750		—		—		—

Currency translation adjustment	—	—		—		—		1,133		—

Unrealized loss on available-for-sale securities, net of tax	—	—		—		—		(4)		—
Change in pension plans, net of tax of $3	—	—		—		—		7		—



BALANCE AT MARCH 28, 2025	10,366,060	$	521	$	91,599	$	349,872	$	2,193	$	(3,083)
Net income	—	—		—		7,742		—		—
Dividends declared	—	—		—		(3,409)		—		—
Issuance of stock under employee stock purchase plan	6,203	—		120		—		—		—

Stock-based compensation	—	—		(284)		—		—		—
B to A conversion	—	—		(13)		—		—		13
Currency translation adjustment	—	—		—		—		5,192		—
Unrealized loss on available-for-sale securities, net of tax	—	—		—		—		(8)		—
Change in pension plans, net of tax	—	—		—		—		9		—



BALANCE AT JUNE 27, 2025	10,372,263	$	521	$	91,422	$	354,205	$	7,386	$	(3,070)

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Index			JOHNSON OUTDOORS INC.


Nine Months Ended June 28, 2024
(thousands except for shares)	Shares	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income		Treasury Stock
BALANCE AT SEPTEMBER 29, 2023	10,250,949	$	514	$	88,234	$	409,574	$	3,323	$	(1,908)
Net income	—	—		—		3,955		—		—
Dividends declared	—	—		—		(3,347)		—		—

Award of non-vested shares	37,712	2		(2)		—		—		—

Stock-based compensation	—	—		598		—		—		—

Currency translation adjustment	—	—		—		—		3,059		—
Unrealized gain on available-for-sale securities, net of tax	—	—		—		—		102		—
Change in pension plans, net of tax of $3	—	—		—		—		7		—

Purchase of treasury stock at cost	(4,661)	—		—		—		—		(241)

BALANCE AT DECEMBER 29, 2023	10,284,000	$	516	$	88,830	$	410,182	$	6,491	$	(2,149)
Net income	—	—		—		2,156		—		—
Dividends declared	—	—		—		(3,368)		—		—

Award of non-vested shares	22,692	1		(1)		—		—
Stock-based compensation	—	—		(180)		—		—		—

Currency translation adjustment	—	—		—		—		(2,379)		—
Unrealized loss on available-for-sales securities, net of tax	—	—		—		—		(18)		—
Change in pension plans, net of tax of $3	—	—		—		—		8		—
Non-vested stock forfeitures	(5,350)	—		341		—		—		(341)


BALANCE AT MARCH 29, 2024	10,301,342	$	517	$	88,990	$	408,970	$	4,102	$	(2,490)
Net income	—	—		—		1,622		—		—
Dividends declared	—	—		—		(3,369)		—		—
Issuance of stock under employee stock purchase plan	4,937	—		172		—		—


Stock-based compensation	—	—		574		—		—		—

Non-vested stock forfeitures	(1,887)	—		110		—		—		(110)
Currency translation adjustment	—	—		—		—		(439)		—
Unrealized gain (loss) on available-for-sale securities, net of tax	—	—		—		—		14		—
Change in pension plans, net of tax of $3		—		—		—		6		—
BALANCE AT JUNE 28, 2024	10,304,392	$	517	$	89,846	$	407,223	$	3,683	$	(2,600)

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Index			JOHNSON OUTDOORS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	Nine Months Ended
(thousands)	June 27, 2025		June 28, 2024
CASH PROVIDED BY OPERATING ACTIVITIES
Net (loss) income	$	(5,244)	$	7,733
Adjustments to reconcile net (loss) income to net cash used for operating activities:
Depreciation	14,872		14,548
Amortization of intangible assets	427		251
Amortization of deferred financing costs	55		26


Stock based compensation	973		992
Loss (Gain) on disposal of productive assets	80		(1,874)

Deferred income taxes	(1,711)		(4,663)
Change in operating assets and liabilities:
Accounts receivable, net	(40,761)		(36,504)
Inventories, net	48,928		38,680
Accounts payable and accrued liabilities	12,728		(5,435)
Other current assets	2,986		5,510
Other non-current assets	(23)		—
Other long-term liabilities	(1,072)		2,935
Other, net	572		(300)
	32,810		21,899
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES
Payments for purchase of businesses	(12,197)		—
Purchase of investments	—		(2,220)
Proceeds from maturity of short-term investments	14,021		19,650
Proceeds from sale of productive assets	—		2,244
Capital expenditures	(11,826)		(16,449)
	(10,002)		3,225
CASH USED FOR FINANCING ACTIVITIES


Common stock transactions	121		172
Debt issuance costs paid	(55)		—
Dividends paid	(10,120)		(10,067)
Purchases of treasury stock	(88)		(241)
	(10,142)		(10,136)
Effect of foreign currency rate changes on cash	527		(19)
Increase in cash and cash equivalents	13,193		14,969
CASH AND CASH EQUIVALENTS
Beginning of period	145,498		111,854
End of period	$	158,691	$	126,823

Supplemental Disclosure:
Cash paid for taxes	$	2,020	$	2,488
Accrued dividends	23		17
Cash paid for interest	121		88
Non-cash treasury stock activity	187		451

The accompanying notes are an integral part of the condensed consolidated financial statements.

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Index			JOHNSON OUTDOORS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1 BASIS OF PRESENTATION

The condensed consolidated financial statements included herein are unaudited. In the opinion of management, these statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Johnson Outdoors Inc. and subsidiaries (collectively, the “Company”) as of June 27, 2025 and June 28, 2024, and their results of operations for the three and nine month periods then ended and cash flows for the nine month periods then ended. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2024 which was filed with the Securities and Exchange Commission on December 11, 2024.

All monetary amounts, other than share and per share amounts, are stated in thousands.

2 ACCOUNTS RECEIVABLE

Accounts receivable are stated net of allowances for credit losses of $670, $3,543 and $649 as of June 27, 2025, September 27, 2024 and June 28, 2024, respectively. The determination of the allowance for credit losses is based on a combination of factors. In circumstances where specific collection concerns about a receivable exist, a reserve is established to value the affected account receivable at an amount the Company believes will be collected. For all other customers, the Company recognizes allowances for credit losses based on historical experience of bad debts as a percent of accounts receivable outstanding for each business segment. Uncollectible accounts are written off against the allowance for credit losses after collection efforts have been exhausted. The Company typically does not require collateral on its accounts receivable.

3 EARNINGS PER SHARE (“EPS”)

Net income or loss per share of Class A common stock and Class B common stock is computed using the two-class method. Grants of restricted stock which receive non-forfeitable dividends are classified as participating securities and are required to be included as part of the basic weighted average share calculation under the two-class method.

Holders of Class A common stock are entitled to cash dividends equal to 110% of all dividends declared and paid on each share of Class B common stock. The Company grants shares of unvested restricted stock in the form of Class A shares, which carry the same distribution rights as the Class A common stock described above. As such, the undistributed earnings for each period are allocated to each class of common stock based on the proportionate share of the amount of cash dividends that each such class is entitled to receive.

Basic EPS

Basic net income or loss per share is computed by dividing net income or loss allocated to Class A common stock and Class B common stock by the weighted-average number of shares of Class A common stock and Class B common stock outstanding, respectively. In periods with cumulative year to date net income and undistributed income, the undistributed income for each period is allocated to each class of common stock based on the proportionate share of the amount of cash dividends that each such class is entitled to receive. In periods where there is a cumulative year to date net loss or no undistributed income because distributions through dividends exceed net income, Class B shares are treated as anti-dilutive and, therefore, net losses are allocated equally on a per share basis among all participating securities.

For the three month period ended June 27, 2025, basic income per share for the Class A and Class B shares has been presented using the two class method and reflects the allocation of undistributed income as described above. For the nine month period ended June 27, 2025, and the three and nine month periods ended June 28, 2024, basic net income (loss) per share for Class A and Class B shares was the same because there were no cumulative undistributed earnings, which has been presented using the two class method described above.

Diluted EPS

Diluted net income per share is computed by dividing allocated net income by the weighted-average number of common shares outstanding, adjusted for the effect of dilutive stock options, restricted stock units (“stock units” or

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Index			JOHNSON OUTDOORS INC.

“units”) and non-vested restricted stock. Anti-dilutive stock options, units and non-vested stock are excluded from the calculation of diluted EPS. The computation of diluted net income per share of Class A common stock assumes that Class B common stock is converted into Class A common stock. Therefore, diluted net income per share is the same for both Class A and Class B common shares. In periods where the Company reports a net loss or no undistributed income because distributions through dividends exceed net income, the effect of anti-dilutive stock options and units is excluded and diluted loss per share is equal to basic loss per share for both classes of stock.

For the three month period ended June 27, 2025, diluted net income per share reflects the effect of dilutive stock units and assumes the conversion of Class B common stock into Class A common Stock. For the nine month period ended June 27, 2025, and the three and nine month periods ended June 27, 2025 and June 28, 2024, the effect of non-vested restricted stock units is excluded from the diluted income (loss) per share calculation as their inclusion would have been anti-dilutive.

Shares of non-vested stock that could potentially dilute earnings per share in the future which were not included in the fully diluted computation because they would have been anti-dilutive totaled 95,654 and 69,044 for the three months ended June 27, 2025 and June 28, 2024, respectively, and 80,507 and 67,429 for the nine months ended June 27, 2025 and June 28, 2024, respectively. Stock units that could potentially dilute earnings per share in the future and which were not included in the fully diluted computation because they would have been anti-dilutive were 102,291 and 71,176 for the three months ended June 27, 2025 and June 28, 2024, respectively, and 101,638 and 71,776 for the nine months ended June 27, 2025 and June 28, 2024, respectively

Dividends per share

Dividends per share for the three and nine month periods ended June 27, 2025 and June 28, 2024 were as follows:


	Three Months Ended				Nine months ended
	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024
Dividends declared per common share:
Class A	$	0.33	$	0.33	$	0.99	$	0.99
Class B	$	0.30	$	0.30	$	0.90	$	0.90

4 STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS

The Company’s current stock ownership plans allow for issuance of stock options to acquire shares of Class A common stock by key executives and non-employee directors. Current plans also allow for issuance of shares of restricted stock, restricted stock units or stock appreciation rights in lieu of stock options.

Under the Company’s 2023 Non-Employee Director Stock Ownership Plan and the 2020 Long-Term Incentive Plan (the only plans where shares currently remain available for future equity incentive awards) there were a total of 284,109 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at June 27, 2025. Share awards previously made under the Company's 2012 Non-Employee Director Stock Ownership Plan, which no longer allow for additional share grants, also remain outstanding.

Non-vested Stock

All shares of non-vested restricted stock awarded by the Company have been granted in the form of shares of Class A common stock at their fair market value on the date of grant and vest within one year from the date of grant for stock granted to directors and within a period ranging from one to four years from the date of grant for stock granted to officers and employees, based on the terms of the agreement with such officer or employee. The fair value at date of grant is based on the number of shares granted and the average of the Company’s high and low Class A common stock price on the date of grant or, if the Company’s Class A shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock price on the last preceding date on which the Company’s Class A shares traded.

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Index			JOHNSON OUTDOORS INC.

A summary of non-vested stock activity for the nine months ended June 27, 2025 related to the Company’s stock ownership plans is as follows:


	Shares	Weighted Average Grant Price
Non-vested stock at September 27, 2024	56,389	$	59.69
Non-vested stock grants	67,312	30.20
Restricted stock vested	(24,357)	54.60
Forfeitures	(3,690)	54.20
Non-vested stock at June 27, 2025	95,654	40.44

Non-vested stock grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of shares by tendering a portion of the vested shares back to the Company. Shares tendered back to the Company were 1,609 and 2,330 during the nine month periods ended June 27, 2025 and June 28, 2024, respectively.

Stock compensation expense, net of forfeitures, related to non-vested stock was $462 and $398 for the three month periods ended June 27, 2025 and June 28, 2024, respectively, and $1,278 and $1,148 for the nine month periods ended June 27, 2025 and June 28, 2024, respectively. Unrecognized compensation cost related to non-vested stock as of June 27, 2025 was $1,907, which amount will be amortized to expense through December 2027 or adjusted for changes in future estimated or actual forfeitures.

The fair value of restricted stock vested during the nine month periods ended June 27, 2025 and June 28, 2024 was $690 and $964, respectively.

Restricted Stock Units

All restricted stock units (RSUs) awarded by the Company have been granted in the form of units payable in shares of Class A common stock upon vesting. The units are valued at the fair market value of a share of Class A common stock on the date of grant and vest within one year from the date of grant for RSUs granted to directors, and subject to satisfaction of applicable performance criteria, three years from the date of grant for RSUs granted to employees. The fair value at the date of grant is based on the number of units granted and the average of the Company’s high and low Class A common stock trading price on the date of grant or, if the Company’s Class A shares did not trade on the date of grant, the average of the Company’s high and low Class A common stock trading price on the last preceding date on which the Company’s Class A shares traded.

A summary of RSU activity for the nine months ended June 27, 2025 follows:


	Number of RSUs	Weighted Average Grant Price
RSUs at September 27, 2024	84,192	$	64.58
RSUs granted	57,792	33.14
RSUs vested and canceled due to performance targets not being met	(17,041)	101.22
RSU's forfeited	(3,690)	54.20
RSUs at June 27, 2025	121,253	44.76

The Company recognized income related to RSUs of $660 and $384 for the three and nine month periods ended June 27, 2025, respectively, as a result of reversing compensation expense previously recognized, due to an expectation that performance conditions wouldn't be met for certain awards. The Company recognized expense of $201 and income of $239 related to RSUs for the three and nine month periods ended June 28, 2024, respectively. Unrecognized compensation cost related to non-vested RSUs as of June 27, 2025 was $542, which amount will be amortized to expense through September 2027 or adjusted for changes in future estimated or actual forfeitures.

RSU grantees may elect to reimburse the Company for withholding taxes due as a result of the vesting of units and issuance of unrestricted shares of Class A common stock by tendering a portion of such unrestricted shares back to the Company. Because performance criteria was not met, the RSUs expiring in the nine month period ended June 27,

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Index			JOHNSON OUTDOORS INC.

2025 were canceled so shares tendered back to the Company for this purpose were 0 during the nine month period ended June 27, 2025. Shares tendered back to the Company for the reimbursement of withholding taxes were 2,331 during the nine month period ended June 28, 2024.

The fair value of restricted stock units recognized as a tax deduction during the nine month periods ended June 27, 2025 and June 28, 2024 was $0 and $1,171, respectively.

Compensation expense related to units earned by employees (as opposed to grants to outside directors) is based upon the attainment of certain Company financial goals related to cumulative net sales and cumulative operating profit over a three-year performance period. Awards are only paid if at least 80% of the target levels are met, and maximum payouts are made if 120% or more of target levels are achieved. The payouts for achievement at the threshold levels of performance are equal to 50% of the target award amount. The payouts for achievement at maximum levels of performance are equal to 150% of the target award amount, which payout level was increased to 200% of the target award amount for the RSU awards issued to employees for the fiscal 2025 – 2027 performance period. To the extent earned, awards are issued in shares of Company Class A common stock after the end of the three-year performance period.

Employees’ Stock Purchase Plan

The Company’s shareholders previously adopted the Johnson Outdoors Inc. 2009 Employees’ Stock Purchase Plan, which was most recently amended on March 2, 2017, but was terminated effective as of May 9, 2025. Prior to termination, this plan provided for the issuance of shares of Class A common stock at a purchase price of not less than 85% of the fair market value of such shares on the date of grant or on the date of purchase, whichever is lower.

During the three month period ended June 27, 2025, the Company issued 6,203 shares of Class A common stock and recognized $86 of income in connection with the Employees' Stock Purchase Plan. During the nine month period ended June 27, 2025, the Company issued 6,203 shares of Class A common stock and recognized $79 of expense in connection with the Employees' Stock Purchase Plan. During the three month period ended June 28, 2024, the Company issued 4,937 shares of Class A common stock and recognized $25 of expense in connection with this plan. During the nine month period ended June 28, 2024, the Company issued 4,937 shares of Class A common stock and recognized $83 of expense in connection with this plan.

5 LEASES

The Company leases certain facilities and machinery and equipment under long-term, non-cancelable operating leases. The Company determines if an arrangement is a lease at inception.

As of June 27, 2025, the Company had approximately 150 leases, with remaining terms ranging from less than one year to 14 years. Some of the leases contain variable payment terms, such as payments based on fluctuations in the Consumer Price Index (CPI). Some leases also contain options to extend or terminate the lease. To the extent the Company is reasonably certain to exercise these options, they have been considered in the calculation of the right-of-use ("ROU") assets and lease liabilities. Under current lease agreements, there are no residual value guarantees or restrictive lease covenants. In calculating the ROU assets and lease liabilities, several assumptions and judgments were made by the Company, including whether a contract is or contains a lease under the applicable definition, and the determination of the discount rate, which is assumed to be the incremental borrowing rate. The incremental borrowing rate is derived from information available to the Company at the lease commencement date based on lease length and location.

The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended June 27, 2025 and June 28, 2024 were as follows:

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Index			JOHNSON OUTDOORS INC.


	Three months ended				Nine months ended
	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024
Lease Cost
Operating lease costs	$	2,680	$	2,470	$	7,951	$	7,411
Short-term lease costs	559		602		1,687		1,828
Variable lease costs	53		43		152		129
Total lease cost	$	3,292	$	3,115	$	9,790	$	9,368

Included in the amounts in the table above was rent expense to related parties of $314 and $941 for the three and nine months ended June 27, 2025, respectively, and $314 and $941 for the three and nine months ended June 28, 2024, respectively.

As of June 27, 2025, the Company did not have any finance leases or sublease agreements. Additionally, the Company does not have any leases in which it is the lessor. While the Company extended or renewed various existing leases during the quarter, there were no significant new leases entered into during the quarter ended June 27, 2025. As of June 27, 2025, the Company did not have any significant operating lease commitments that have not yet commenced. Supplemental balance sheet, cash flow, and other information related to operating leases was as follows:


	Nine months ended
	June 27, 2025			June 28, 2024
Operating leases:

Operating lease ROU assets	$	45,038		$	49,017

Current operating lease liabilities	7,793			7,648
Non-current operating lease liabilities	39,137			43,124
Total operating lease liabilities	$	46,930		$	50,772

Weighted average remaining lease term (in years)	10.58			11.21

Weighted average discount rate	3.41		%	3.22		%

Cash paid for amounts included in the measurement of lease liabilities	$	7,565		$	6,884

ROU assets obtained in exchange for lease liabilities	$	4,147		$	3,497

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at June 27, 2025 were as follows:

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Index			JOHNSON OUTDOORS INC.


Year	Related parties included in total		Total
Remainder of 2025	$	329	$	2,580
2026	1,348		9,308
2027	226		7,473
2028	—		4,882
2029	—		3,534
Thereafter	—		29,768
Total undiscounted lease payments	1,903		57,545
Less: Imputed interest	(21)		(10,615)
Total net lease liability	$	1,882	$	46,930

6 INCOME TAXES

For the three and nine months ended June 27, 2025 and June 28, 2024, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:


	Three Months Ended						Nine Months Ended
(thousands, except tax rate data)	June 27, 2025			June 28, 2024			June 27, 2025			June 28, 2024
Profit (loss) before income taxes	$	10,500		$	907		$	(4,269)		$	9,818
Income tax expense (benefit)	2,758			(715)			975			2,085
Effective income tax rate	26.3		%	(78.8)		%	(22.8)		%	21.2		%

The change in the Company’s effective tax rate for the three months ended June 27, 2025 versus the prior year period was primarily due to the change in the geographic mix of profits or losses from a tax perspective in the current year. The Company's effective tax rate is impacted by valuation allowances in certain foreign tax jurisdictions and, as a result, changes in the geographic source of Company profits or losses between periods can, in certain instances, have varying impacts on the Company's effective tax rate during a particular period.

The change in the effective tax rate for the nine months ended June 27, 2025 compared to the nine months ended June 28, 2024 was primarily due to the recording of an unrecognized tax benefit and the change in the geographic mix of profits or losses from a tax perspective in the current year as compared to the prior year. The Company's effective tax rate is impacted by valuation allowances in certain foreign tax jurisdictions and, as a result, changes in the geographic source of Company profits or losses between periods can, in certain instances, have varying impacts on the Company's effective tax rate during a particular period.

The Company maintains valuation allowances when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In determining whether a valuation allowance is required, the Company considers such factors as prior earnings history, expected future earnings, carry-back and carry-forward periods, and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset. Due to recent operating losses in the U.S., the Company has evaluated the realizability of U.S. net deferred tax assets. The evaluation concluded that the Company's U.S. deferred tax assets are realizable. The Company will continue to monitor the need for a valuation allowance on its U.S. deferred tax assets.

The impact of the Company’s operations in jurisdictions where a valuation allowance is assessed is removed from the overall effective tax rate methodology and recorded directly based on year to date results for the year for which no tax expense or benefit can be recognized. The significant tax jurisdictions that have a valuation allowance for the periods ended June 27, 2025 and June 28, 2024 were:

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Index			JOHNSON OUTDOORS INC.


June 27, 2025			June 28, 2024
Indonesia			Indonesia
Switzerland			Switzerland

The Company regularly assesses the adequacy of its provisions for income tax contingencies in accordance with the applicable authoritative guidance on accounting for income taxes. As a result, the Company may adjust the reserves for unrecognized tax benefits due to the impact of changes in its assumptions or as a result of new facts and developments, such as changes to interpretations of relevant tax law, assessments from taxing authorities, settlements with taxing authorities and lapses of statutes of limitation. The Company recorded a $858 unrecognized tax benefit including interest and penalties of $258 during the nine month period ended June 27, 2025 and estimates that reductions to unrecognized tax benefits for the remainder of fiscal 2025 will total $700 due mainly to lapses in statutes of limitations.

In accordance with its accounting policy, the Company recognizes accrued interest and penalties related to unrecognized benefits as a component of income tax expense.

On July 4, 2025, the One Big Beautiful Bill (OBBB) Act, which includes a broad range of tax reform provisions, was signed into law in the United States. We are currently assessing its potential impact on our estimated annual effective tax rate.

7 INVENTORIES

The Company values inventory at the lower of cost (determined using the first-in first-out method) or net realizable value. Inventories at the end of the respective periods consisted of the following:


	June 27, 2025		September 27, 2024		June 28, 2024
Raw materials	$	85,956	$	103,780	$	107,384

Finished goods	77,776		106,008		115,776
	$	163,732	$	209,788	$	223,160

8 GOODWILL

The changes in goodwill during the nine months ended June 27, 2025 and June 28, 2024 were as follows:


	June 27, 2025		June 28, 2024
Balance at beginning of period	$	—	$	11,172
Acquisitions	10,231		—

Amount attributable to movements in foreign currency rates	(69)		(12)
Balance at end of period	$	10,162	$	11,160

The goodwill at June 27, 2025 relates to the acquisition of Endless Summer Technologies Proprietary, Ltd. See Note 18 below for additional information on the acquisition.

The Company evaluates the carrying value of goodwill for a reporting unit on an annual basis or more frequently when events and circumstances warrant such an evaluation. In conducting this analysis, the Company uses the income approach to compare the reporting unit's carrying value to its indicated fair value. Fair value is determined primarily by using a discounted cash flow methodology that requires considerable management judgment and long-term assumptions and is considered a Level 3 (unobservable) fair value determination in the fair value hierarchy (see Note 12) below.

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Index			JOHNSON OUTDOORS INC.

During the fourth quarter of fiscal 2024, the Company's annual goodwill impairment test indicated the carrying value of the Fishing reporting unit exceeded its estimated fair value as of the measurement date of August 30, 2024. As a result, the Company recognized a goodwill impairment charge in the fourth quarter of fiscal 2024, which reduced the carrying value of the balance of goodwill reported as of June 28, 2024 of $11,167 to $0 as of September 27, 2024. This non-cash impairment was primarily driven by reduced cash flow projections in the Fishing reporting unit, prompted by ongoing market challenges and competitive pressure occurring in this segment.

9 WARRANTIES

The Company provides warranties on certain of its products as they are sold. The following table summarizes the Company’s warranty activity for the nine months ended June 27, 2025 and June 28, 2024.


	June 27, 2025		June 28, 2024
Balance at beginning of period	$	10,211	$	11,741
Expense accruals for warranties issued during the period	8,969		6,359
Less current period warranty claims paid	(6,737)		(7,168)
Balance at end of period	$	12,443	$	10,932

10 CONTINGENCIES

The Company is subject to various legal actions and proceedings in the normal course of business, including those related to commercial disputes, product liability, intellectual property and regulatory matters. The Company is insured against loss for certain of these matters. Although litigation is subject to many uncertainties and the ultimate exposure with respect to these matters cannot be ascertained, management does not believe the final outcome of any pending litigation will have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company.

11 INDEBTEDNESS

The Company had no debt outstanding at June 27, 2025, September 27, 2024, or June 28, 2024.

Revolver

The Company and certain of its subsidiaries have entered into an unsecured credit facility with PNC Bank National Association and Associated Bank, N.A. ("the Lending Group"). This credit facility consists of a $75 million Revolving Credit Facility among the Company, certain of the Company’s subsidiaries, PNC Bank National Association, as lender and as administrative agent, and the other lender named therein (as amended, the “Credit Agreement” or “Revolver”). The Revolver provides for borrowing of up to an aggregate principal amount not to exceed $75,000 with a $50,000 accordion feature that gives the Company the option to request an increase of the maximum financing availability (i.e., an aggregate borrowing amount of $125,000) subject to the conditions of the Credit Agreement and subject to the approval of the lenders. On July 15, 2021, the Company entered into a First Amendment to this credit facility that extended its expiration date from November 15, 2022, to July 15, 2026. On January 29, 2025, the Company entered into a Second Amendment to this credit facility that reduced the Revolver to $50,000 (but maintained the accordion feature) and modified the terms of the Credit Agreement as disclosed below for the period from the amendment date until the earlier of (1) the Company’s compliance with both a 3.00x maximum leverage ratio and a 3.50x minimum interest coverage ratio for the trailing twelve month period or (2) delivery of the Company’s fiscal 2025 financial statements and compliance certificate (the “Second Amendment Period”):

•suspension of application of the maximum leverage and minimum interest coverage ratios during the Second Amendment Period;

•the Company and its subsidiaries must maintain a $50,000 minimum cash balance;

•acquisition, dividends, repurchases and distributions permitted, provided the Company and its subsidiaries maintain a $50,000 minimum cash balance;

•monthly financial reporting if the facility availability is less than or equal to 95%; and

•the granting of a security interest in the Company’s personal property assets if the facility availability is less than or equal to 95%.

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Index			JOHNSON OUTDOORS INC.

Other key provisions of the credit facility remained as outlined herein and the description herein is qualified in its entirety by the terms and conditions of the original Credit Agreement (a copy of which was filed as Exhibit 99.1 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on November 20, 2017), the First Amendment, (a copy of which was filed as Exhibit 10.1 to the current report on Form 8-K dated and filed with the Securities and Exchange Commission on July 16, 2021), and the aforementioned Second Amendment (a copy of which was filed as Exhibit 10.1 to the quarterly report on Form 10-Q dated and filed with the Securities and Exchange Commission on February 3, 2025).

The interest rate is based on the Secured Overnight Financing Rate ("SOFR") plus an applicable margin. The applicable margin ranges from 1.00% to 1.75% and is dependent on the Company’s leverage ratio for the trailing twelve month period. The interest rates on the Revolver at both June 27, 2025 and June 28, 2024 were approximately 5.4% and 6.45%, respectively. During the Second Amendment Period, the interest rate on borrowings under the Revolver will equal SOFR plus a 1.75% applicable margin.

The Credit Agreement restricts the Company's ability to incur additional debt, includes maximum leverage ratio and minimum interest coverage ratio covenants and is unsecured, except as noted above during the Second Amendment Period.

Other Borrowings

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of June 27, 2025 or June 28, 2024. The Company utilizes letters of credit primarily as security for the payment of future claims under its workers’ compensation insurance, which totaled approximately $67 and $67 as of June 27, 2025 and June 28, 2024, respectively.

12 FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy has been established based on three levels of inputs, of which the first two are considered observable and the last unobservable.

•Level 1 - Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets or liabilities.

•Level 2 - Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments.

•Level 3 - Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances.

The carrying amounts of accounts receivable, accounts payable and accrued expenses approximated their fair values at June 27, 2025, September 27, 2024 and June 28, 2024 due to the short term maturities of these instruments. See Note 13 for discussion of fair value of cash and cash equivalents. When indicators of impairment are present, the Company may be required to value certain long-lived assets such as property, plant, and equipment, and other intangibles at their fair value.

Valuation Techniques

Rabbi Trust Assets

Rabbi trust assets are classified as trading securities and are comprised of marketable debt and equity securities that are marked to fair value based on unadjusted quoted prices in active markets. The rabbi trust assets are used to fund amounts the Company owes to certain officers and other employees under the Company’s non-qualified deferred compensation plan. These assets are included in "Other assets" in the accompanying Company's Condensed Consolidated Balance Sheets, and the mark to market adjustments on the assets are recorded in “Other income, net” in the accompanying Condensed Consolidated Statements of Operations. The offsetting deferred compensation liability is also reported at fair value as "Deferred compensation liability" in the Company's accompanying Condensed

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Index			JOHNSON OUTDOORS INC.

Consolidated Balance Sheets. Changes in the liability are recorded in "Administrative management, finance and information systems" expense in the accompanying Condensed Consolidated Statements of Operations.

Marketable Securities

Marketable securities are classified as available-for-sale, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.

The following table summarizes the Company’s financial assets measured at fair value as of June 27, 2025:


	Level 1		Level 2		Level 3		Total
Assets:
Rabbi trust assets	$	28,617	$	—	$	—	$	28,617
Marketable securities	—		2,331		—		2,331
Total	$	28,617	$	2,331	$	—	$	30,948

The following table summarizes the Company’s financial assets measured at fair value as of September 27, 2024:


	Level 1		Level 2		Level 3		Total
Assets:
Rabbi trust assets	$	29,059	$	—	$	—	$	29,059
Marketable securities	—		16,541		—		16,541
Total	$	29,059	$	16,541	$	—	$	45,600

The following table summarizes the Company’s financial assets measured at fair value as of June 28, 2024:


	Level 1		Level 2		Level 3		Total
Assets:
Rabbi trust assets	$	27,793	$	—	$	—	$	27,793
Marketable securities	—		23,783		—		23,783
Total	$	27,793	$	23,783	$	—	$	51,576

The effect of changes in the fair value of financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three and nine month periods ended June 27, 2025 and June 28, 2024 was:


		Three Months Ended				Nine months ended
	Location of income recognized in Statement of Operations	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024

Rabbi trust assets	Other income (expense), net	$	2,407	$	403	$	(358)	$	5,175

There were no assets or liabilities measured at fair value on a non-recurring basis in periods subsequent to their initial recognition for either of the nine month periods ended June 27, 2025 or June 28, 2024.

13 CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

The Company considers all short-term investments in interest bearing accounts and all securities and other instruments with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost which approximates market value.

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Index			JOHNSON OUTDOORS INC.

The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at estimated fair value, with unrealized gains and losses, net of tax, reported as a separate component of accumulated other comprehensive income in the Condensed Consolidated Statements of Shareholders' Equity.

At June 27, 2025, cost for marketable securities was determined using the specific identification method. A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the period presented is shown in the following table. All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.

The following table summarizes the Company’s marketable securities measured at fair value as of June 27, 2025:


	Amortized Cost		Fair Value		Gross unrealized gains		Gross unrealized losses

Fixed rate Canadian Government Bonds	$	2,326	$	2,331	$	5	$	—

Total	$	2,326	$	2,331	$	5	$	—

The following table summarizes the Company’s marketable securities measured at fair value as of September 27, 2024:


	Amortized Cost		Fair Value		Gross unrealized gains		Gross unrealized losses

Fixed rate US Government Bonds	$	7,493	$	7,496	$	3	$	—
Fixed rate Canadian Government Bonds	9,025		9,045		20		—
Total	$	16,518	$	16,541	$	23	$	—

The following table summarizes the Company’s marketable securities measured at fair value as of June 28, 2024:


	Amortized Cost		Fair Value		Gross unrealized gains		Gross unrealized losses

Fixed rate US Government Bonds	$	14,984	$	14,975	$	—	$	9
Fixed rate Canadian Government Bonds	8,830		8,808		—		22
Total	$	23,814	$	23,783	$	—	$	31

Proceeds from the maturities of available for sale securities were $14,021 and $19,650 for the nine month periods ended June 27, 2025 and June 28, 2024, respectively. There were no sales or purchases of available-for-sale securities for the nine month periods ended June 27, 2025 or June 28, 2024. No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods.

The future contractual maturities of the marketable securities held at June 27, 2025 are as follows: $2,331 within one year, classified as Short-Term Investments on the Condensed Consolidated Balance Sheets, and $0 greater than one year, but less than five years, classified as Investments on the Condensed Consolidated Balance Sheets.

14 NEW ACCOUNTING PRONOUNCEMENTS

Recently issued accounting pronouncements

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Index			JOHNSON OUTDOORS INC.

In November 2024, the Financial Account Standards Board (FASB), issued Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). ASU 2024-03 is intended to improve disclosures and provide more detailed information about a public entity’s expenses, specifically amounts related to purchases of inventory, employee compensation, depreciation, intangible asset amortization, and selling expenses, along with qualitative descriptions of certain other types of expenses. This guidance in this ASU is effective in fiscal 2028, and interim periods in fiscal 2029, with early adoption permitted. The Company is currently reviewing this ASU and its potential impact on its financial statements and disclosures.

In March 2024, the United States Securities and Exchange Commission (SEC) issued Final Rulemaking Release No. 33-11275: The Enhancement and Standardization of Climate-Related Disclosures for Investors. This release is intended to improve consistency, completeness and transparency related to climate risks and events. The disclosure requirements related to this new rule will be phased in, and effective for the Company beginning in fiscal 2027 on a prospective basis. The Company is currently evaluating the potential impact of this release on its financial statements and disclosures.

In December 2023, the FASB, issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this ASU are effective for the Company in fiscal 2026 on a prospective basis, with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on its financial statements and disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 is intended to improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses. The amendments in this ASU are effective in fiscal 2025, and interim periods in fiscal 2026, on a retrospective basis, with early adoption permitted. The Company does not expect this guidance to have a material effect on its financial statements and disclosures.

15 REVENUES

Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. The amount of consideration received can vary, primarily because of customer incentive or rebate arrangements. The Company estimates variable consideration based on the expected value of total consideration to which customers are likely to be entitled based on historical experience and projected market expectations. Included in the estimate is an assessment as to whether any variable consideration is constrained. Revenue estimates are adjusted at the earlier of a change in the expected value of consideration or when the consideration becomes fixed. For all contracts with customers, the Company has not adjusted the promised amount of consideration for the effects of a significant financing component as the period between the transfer of the promised goods and the customer's payment is expected to be one year or less. Sales are made on normal and customary short-term credit terms, generally ranging from 30 to 90 days, or upon delivery of point of sale transactions. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue.

The Company enters into contractual arrangements with customers in the form of individual customer orders which specify the goods, quantity, pricing, and associated order terms. The Company does not have contracts which are satisfied over time. Due to the nature of these contracts, no significant judgment exists in relation to the identification of the customer contract, satisfaction of the performance obligation, or transaction price. The Company expenses incremental costs of obtaining a contract due to the short-term nature of the contracts.

Estimated costs of returns, allowances and discounts, based on historic experience, are accrued as a reduction to sales when revenue is recognized. The Company provides customers the right to return eligible products under certain circumstances. At June 27, 2025, the right to returns asset was $1,447 and the accrued returns liability was $3,783. At June 28, 2024, the right to returns asset was $1,195 and the accrued returns liability was $2,981. The Company also offers assurance-type warranties relating to its products sold to end customers that continue to be accounted for under ASC 460 Guarantees.

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Index			JOHNSON OUTDOORS INC.

The Company accounts for shipping and handling activities as a fulfillment activity, consistent with the timing of revenue recognition; that is, when a customer takes control of the transferred goods. In the event that a customer were to take control of a product upon or after shipment, the Company has made an accounting policy election to treat such shipping and handling activities as a fulfillment cost. Shipping and handling fees billed to customers are included in "Net Sales," and shipping and handling costs are recognized within "Marketing and selling expenses" in the same period the related revenue is recognized.

The Company has a wide variety of seasonal, outdoor recreation products used primarily for fishing from a boat, diving, paddling, hiking and camping, that are sold to a variety of customers in multiple end markets. The revenue recognition policies are similar among all the various products sold by the Company.

See Note 16 for required disclosures of disaggregated revenue.

16 SEGMENTS OF BUSINESS

The Company conducts its worldwide operations through separate business segments, each of which represents major product lines. Operations are conducted in the United States and various foreign countries, primarily in Europe, Canada and the Pacific Basin.

The Company has historically reported "Camping" and "Watercraft Recreation" segments separately. As of December 27, 2024, the Company combined these two segments into one segment, "Camping & Watercraft Recreation," consistent with the manner in which its chief operating decision maker ("CODM") assesses performance and makes resource allocations. The operating segment change was for financial reporting purposes only and did not impact or result in changes to operations of the business segments, nor did it impact the Company's consolidated financial statements, but it did impact our previous segment footnote disclosure and the table below, including the corresponding items of segment information disclosed in the prior year.

Net sales and operating profit include both sales to customers, as reported in the Company’s accompanying Condensed Consolidated Statements of Operations, and interunit transfers, which are priced to recover cost plus an appropriate profit margin. Total assets represent assets that are used in the Company’s operations in each business segment at the end of the periods presented.

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Index			JOHNSON OUTDOORS INC.

A summary of the Company’s operations by business segment is presented below:


	Three Months Ended				Nine Months Ended
	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024		September 27, 2024
Net sales:
Fishing:
Unaffiliated customers	$	140,243	$	130,415	$	357,138	$	379,242
Interunit transfers	436		122		904		395
Camping & Watercraft Recreation:
Unaffiliated customers	18,884		21,946		46,153		52,861
Interunit transfers	24		51		58		110
Diving
Unaffiliated customers	21,197		19,856		52,691		54,248
Interunit transfers	4		5		14		15
Other / Corporate	331		255		671		621
Eliminations	(464)		(178)		(976)		(520)
Total	$	180,655	$	172,472	$	456,653	$	486,972
Operating profit (loss):
Fishing	$	14,553	$	5,258	$	15,761	$	24,214
Camping & Watercraft Recreation:	1,588		2,031		2,188		1,534
Diving	1,576		898		255		22
Other / Corporate	(10,387)		(8,693)		(26,212)		(26,483)
	$	7,330	$	(506)	$	(8,008)	$	(713)
Total assets (end of period):
Fishing					$	304,451	$	365,842	$	325,882
Camping & Watercraft Recreation:					78,304		77,821		69,516
Diving					97,008		81,818		77,465
Other / Corporate					154,710		154,344		162,349
					$	634,473	$	679,825	$	635,212

Other Segment Information

During the three and nine month periods ended June 27, 2025, one customer of the Company's Fishing and Camping & Watercraft Recreation segments accounted for more than 10% of the Company's consolidated revenues, which amounted to net sales of approximately $34,171 and $95,215, respectively, of the Company's consolidated revenues. During the three and nine month periods ended June 28, 2024, one customer of the Company's Fishing and Camping & Watercraft Recreation segments accounted for more than 10% of the Company's consolidated revenues, which amounted to net sales of approximately $41,273 and $150,166, respectively, of the Company's consolidated revenues.

During the first quarter of fiscal 2024, the Fishing segment of the Company sold a building, which resulted in a gain of approximately $1,900, which was recorded in Other income, net in the accompanying Condensed Consolidated Statements of Operations.

17 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the nine months ended June 27, 2025 were as follows:

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Index			JOHNSON OUTDOORS INC.


	Foreign Currency Translation Adjustment		Unrealized gain (loss) on available-for sale securities		Unamortized Loss on Defined Benefit Pension Plans		Accumulated Other Comprehensive Income (Loss)
Balance at September 27, 2024	$	6,056	$	17	$	(109)	$	5,964
Other comprehensive loss before reclassifications	(4,915)		(1)		—		(4,916)
Amounts reclassified from accumulated other comprehensive income	—		—		11		11
Tax effects	—		—		(2)		(2)
Balance at December 27, 2024	$	1,141	$	16	$	(100)	$	1,057
Other comprehensive income before reclassifications	1,133		(4)		—		1,129
Amounts reclassified from accumulated other comprehensive income	—		—		10		10
Tax effects	—		—		(3)		(3)
Balance at March 28, 2025	$	2,274	$	12	$	(93)	$	2,193
Other comprehensive income before reclassifications	5,192		(8)		—		5,184
Amounts reclassified from accumulated other comprehensive income	—		—		11		11
Tax effects	—		—		(2)		(2)
Balance at June 27, 2025	$	7,466	$	4	$	(84)	$	7,386

The changes in AOCI by component, net of tax, for the nine months ended June 28, 2024 were as follows:


	Foreign Currency Translation Adjustment		Unrealized gain (loss) on available-for sale securities		Unamortized Loss on Defined Benefit Pension Plans		Accumulated Other Comprehensive Income (Loss)
Balance at September 29, 2023	$	3,581	$	(121)	$	(137)	$	3,323
Other comprehensive income before reclassifications	3,059		138		—		3,197
Amounts reclassified from accumulated other comprehensive income	—				10		10
Tax effects	—		(36)		(3)		(39)
Balance at December 29, 2023	$	6,640	$	(19)	$	(130)	$	6,491
Other comprehensive loss before reclassifications	(2,379)		(24)		—		(2,403)
Amounts reclassified from accumulated other comprehensive income	—		—		10		10
Tax effects	—		6		(2)		4
Balance at March 29, 2024	$	4,261	$	(37)	$	(122)	$	4,102
Other comprehensive loss before reclassifications	(439)		20		—		(419)
Amounts reclassified from accumulated other comprehensive income	—		—		9		9
Tax effects	—		(6)		(3)		(9)
Balance at June 28, 2024	$	3,822	$	(23)	$	(116)	$	3,683

The reclassifications out of AOCI for the three and nine months ended June 27, 2025 and June 28, 2024 were as follows:

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Index			JOHNSON OUTDOORS INC.


	Three Months Ended				Nine Months Ended
	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024		Statement of Operations Presentation
Unamortized loss on defined benefit pension plans:
Amortization of loss	$	11	$	10	$	32	$	29	Other income and expense
Tax effects	(2)		(2)		(7)		(8)		Income tax expense


Total reclassifications for the period	$	9	$	8	$	25	$	21

18 ACQUISITIONS

On October 25, 2024, the Company acquired all the outstanding common stock of Endless Summer Technologies Proprietary, Ltd ("EST") and related patents and other assets used in EST's business and operations in a purchase transaction with EST's sole shareholder (the "Seller"). EST, based in Durban, South Africa, has been a long term supplier of products to the Company and it specializes in the design, development and manufacturing of scuba equipment through unique application of existing, new and emerging technologies. The EST acquisition is included in the Company's Diving segment, and is expected to provide new innovative products, unlock synergies and enhance operating efficiencies for the Diving segment.

The approximately $12,197 acquisition cost was funded with existing cash. Approximately $1,650 of the purchase price was paid into segregated escrow accounts which were set aside to fund (1) any potential downward purchase price adjustment tied to cash, debt and net working capital levels as of the closing or (2) potential indemnity claims that may be made by the Company against the Seller in connection with the inaccuracy of certain representations and warranties made by the Seller or related to the breach or nonperformance of certain other actions, agreements or conditions related to the acquisition, for a period of 24 months from the acquisition date. The Company cannot estimate the probability or likelihood of bringing such an indemnity claim against the Seller or any related costs at this time. The remaining escrow balance, if any, net of any indemnity claim then pending, will be released to the Seller once the 24 month period has lapsed.

The Company is currently in the process of finalizing the fair value of the assets acquired and the liabilities assumed in this acquisition and anticipates completing the valuation of intangibles and other assets, including any final cash, debt, net working capital adjustments and the related tax effects, within this fiscal year. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed, and the resulting goodwill acquired at the date of acquisition:


Recognized amounts of identifiable assets acquired and liabilities assumed
Accounts receivable	$	245
Inventories	2,261
Other current assets	72
Property, plant and equipment	502
Identifiable intangible assets	1,439
Deferred tax asset	237
Less, accounts payable and accruals	(1,044)
Less, other current liabilities	(636)
Less, long term liabilities	(1,110)
Total identifiable net assets	1,966
Goodwill	10,231
Net assets acquired	$	12,197

Pro forma financial information has not been presented because such amounts are not material to the unaudited condensed consolidated financial statements.

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Index			JOHNSON OUTDOORS INC.

Transaction costs incurred for the acquisition to date were approximately $635, of which approximately $135 was recognized during the nine months ended June 27, 2025, and which are included in Administrative management, finance and information systems expenses in the accompanying Condensed Consolidated Statements of Operations.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) includes comments and analysis relating to the results of operations and financial condition of Johnson Outdoors Inc. and its subsidiaries (collectively, the “Company”) as of and for the three and nine month periods ended June 27, 2025 and June 28, 2024. All monetary amounts, other than share and per share amounts, are stated in thousands.

This discussion should be read in conjunction with the Condensed Consolidated Financial Statements and related notes that immediately precede this section, as well as the Company’s Annual Report on Form 10-K for the fiscal year ended September 27, 2024 which was filed with the Securities and Exchange Commission on December 11, 2024.

Forward Looking Statements

Certain matters discussed in this Form 10-Q are “forward-looking statements,” and the Company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of those safe harbor provisions. These forward-looking statements can generally be identified as such because they include phrases such as the Company “expects,” “believes,” “anticipates,” “intends,” use of words such as “confident,” “could,” “may,” “planned,” “potential,” “should,” “will,” “would” or the negative of such words or other words of similar meaning. Similarly, statements that describe the Company’s future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results or outcomes to differ materially from those currently anticipated.

Factors that could affect actual results or outcomes include the matters described under the caption “Risk Factors” in Item 1A of the Company’s Form 10-K for the fiscal year ended September 27, 2024 which was filed with the Securities and Exchange Commission on December 11, 2024 and the following: changes in economic conditions, consumer confidence levels and discretionary spending patterns in key markets; uncertainties stemming from political instability (and its impact on the economies in jurisdictions where the Company has operations); uncertainties stemming from changes in U.S. trade policies, tariffs, and the reaction of other countries to such changes; the global outbreaks of disease, such as the COVID-19 pandemic which has affected, and may continue to affect, market and economic conditions, along with wide-ranging impacts on employees, customers and various aspects of our operations; the Company’s success in implementing its strategic plan, including its targeted sales growth platforms, innovation focus and its increasing digital presence; litigation costs related to actions of and disputes with third parties, including competitors; the Company’s continued success in its working capital management and cost-structure reductions; the Company’s success in integrating strategic acquisitions; the risk of future writedowns of goodwill or other long-lived assets; the ability of the Company’s customers to meet payment obligations; the impact of actions of the Company's competitors with respect to product development or enhancement or the introduction of new products into the Company's markets; movements in foreign currencies, interest rates or commodity costs; fluctuations in the prices of raw materials or the availability of raw materials or components used by the Company; any disruptions in the Company's supply chain as a result of material fluctuations in the Company's order volumes and requirements for raw materials and other components, or the demand for those same raw materials and components by third parties, necessary to manufacture and produce the Company's products including related to shortages in procuring necessary raw materials and components to manufacture and produce such products; the success of the Company’s suppliers and customers and the impact of any consolidation in the industries of the Company's suppliers and customers; the ability of the Company to deploy its capital successfully; unanticipated outcomes related to outsourcing certain manufacturing processes; unanticipated outcomes related to litigation matters; and adverse weather conditions and other factors impacting climate change legislation. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this filing. The Company assumes no obligation, and disclaims any obligation, to update such forward-looking statements to reflect subsequent events or circumstances.

Trademarks

We have registered the following trademarks, among others, which may be used in this report: Minn Kota®, Cannon®, Humminbird®, Jetboil®, Old Town®, Ocean Kayak®, Carlisle®, and SCUBAPRO®.

Overview

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Index			JOHNSON OUTDOORS INC.

The Company is a leading global manufacturer and marketer of branded seasonal outdoor recreation products used primarily for fishing, diving, paddling and camping. The Company’s portfolio of well-known consumer brands has attained leading market positions due to continuous innovation, marketing excellence, product performance and quality. The Company’s values and culture support innovation in all areas, promoting and leveraging best practices and synergies within and across its subsidiaries to advance the Company’s strategic vision set by executive management and approved by the Company’s Board of Directors. The Company is controlled by Helen P. Johnson-Leipold, the Company’s Chairman and Chief Executive Officer, members of her family and related entities.

Recent Developments

As disclosed in Part I, Item 1A: Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended September 27, 2024, the Company’s business is subject to risks related to, among other factors, tariffs put in the place by the United States or other countries, including ongoing negotiations on tariffs by the United States with foreign nations and trading partners. During the nine months ended June 27, 2025, the United States government has announced additional tariffs on goods imported into the U.S. from numerous countries. These tariffs may result in an increase costs to the Company, which may ultimately negatively impact demand for our products and/or reduce the Company's overall profitability. The Company continues to analyze the potential impacts of the tariffs and actions that can be taken to mitigate their effects, including, among other options, adjusting our supply chain strategy, evaluating potential operational changes to improve efficiencies, and considering potential adjustments to our pricing strategy.

As disclosed in Part I, Item 1A: Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended September 27, 2024, the Company is subject to risks related to changes in tax laws or rulings. On July 4, 2025, the One Big Beautiful Bill (OBBB) Act, which includes a broad range of tax reform provisions, was signed into law in the United States. The Company is currently assessing the potential impact of the OBBB Act on our estimated annual effective tax rate.

Highlights

Net sales of $180,655 for the third quarter of fiscal 2025 increased $8,183, or 5%, from the same period in the prior year. The increase between quarterly periods was mainly driven by innovation and new product success across several of the Company's product categories. Gross margin increased to 37.6% compared to 35.8% in the prior year quarter. In addition to the gross margin improvement, lower operating expenses also contributed to a $7,836 improvement in operating profit in the current year quarter versus the prior year quarter.

As of December 27, 2024, and as referenced in “Note 16 – Segments of Business” of the notes to the accompanying Condensed Consolidated Financial Statements, the Company has combined the previously reported "Camping" and "Watercraft Recreation" segments into one segment, referred to as "Camping & Watercraft Recreation."

During the first quarter of fiscal 2025, the Company's Diving segment completed an acquisition of a scuba equipment manufacturer for $12,197, which is expected to provide new innovative products, unlock synergies and enhance operating efficiencies for this segment. See “Note 18 – Acquisitions” of the notes to the accompanying Condensed Consolidated Financial Statements for additional information.

Seasonality

The Company’s business is seasonal in nature. The third fiscal quarter traditionally falls within the Company’s primary selling season for its warm-weather outdoor recreation products. The table below sets forth a historical view of the Company’s seasonality during the last three fiscal years.


	Fiscal Year
	2024				2023				2022
Quarter Ended	Net Sales		Operating Loss		Net Sales		Operating Profit (Loss)		Net Sales		Operating Profit
December	23	%	—	%	27	%	47	%	21	%	21	%
March	30	%	1	%	30	%	97	%	26	%	23	%
June	29	%	1	%	28	%	149	%	27	%	36	%
September	18	%	98	%	15	%	(193)	%	26	%	20	%
	100	%	100	%	100	%	100	%	100	%	100	%

Results of Operations

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Index			JOHNSON OUTDOORS INC.

The Company’s net sales and operating profit (loss) by business segment for the periods shown below were as follows:


	Three Months Ended				Nine Months Ended
	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024
Net sales:
Fishing	$	140,679	$	130,537	$	358,042	$	379,637
Camping & Watercraft Recreation	18,908		21,997		46,211		52,971
Diving	21,201		19,861		52,705		54,263
Other / Corporate / Eliminations	(133)		77		(305)		101
Total	$	180,655	$	172,472	$	456,653	$	486,972
Operating profit (loss):
Fishing	$	14,553	$	5,258	$	15,761	$	24,214
Camping & Watercraft Recreation	1,588		2,031		2,188		1,534
Diving	1,576		898		255		22
Other / Corporate / Eliminations	(10,387)		(8,693)		(26,212)		(26,483)
Total	$	7,330	$	(506)	$	(8,008)	$	(713)

See “Note 16 – Segments of Business” of the notes to the accompanying Condensed Consolidated Financial Statements for the definition of segment net sales and operating profit.

Net Sales - Third Fiscal Quarter

Consolidated net sales for the three months ended June 27, 2025 were $180,655, an increase of $8,183, or 5%, compared to $172,472 for the three months ended June 28, 2024. Foreign currency translation had a negligible impact on current year third quarter net sales compared to the prior year's third quarter net sales.

Net sales for the three months ended June 27, 2025 for the Fishing business were $140,679, an increase of $10,142, or 8%, from $130,537 during the third fiscal quarter of the prior year. The increase in sales in this segment between quarters was mainly due sales generated by the introduction of new products.

Net sales for the Camping & Watercraft Recreation business were $18,908 for the third quarter of the current fiscal year, a decrease of $3,089, or 14%, from the prior year net sales during the same period of $21,997. As previously announced, the Company exited the Eureka! brand in this segment and completed all sales of Eureka! inventory in the first fiscal quarter of 2025. There were no Eureka! sales in the current year third quarter, compared to approximately $3,573 of Eureka! sales in the prior year third quarter. Excluding the impact of Eureka! sales in the prior year third quarter, sales in this segment increased slightly over the prior year third quarter due to success of new Jetboil products introduced into the market by the Company.

Net sales for Diving for the third quarter of fiscal 2025 were $21,201, which increased $1,340, or 7%, compared to net sales of $19,861 for the three months ended June 28, 2024. The sales increase over the prior year third quarter was primarily driven by modest improvements in market conditions across certain regions, which led to slightly higher demand in those regions. Additionally, foreign currency translation had a favorable impact of approximately 2% on sales in this segment versus the prior year third quarter.

Net Sales - Year-To-Date

Consolidated net sales for the nine months ended June 27, 2025 were $456,653, a decrease of $30,319, or 6%, compared to $486,972 for the nine months ended June 28, 2024. Foreign currency translation had a negligible impact on net sales of the current year to date period compared to the prior year to date period.

Net sales for the nine months ended June 27, 2025 for the Fishing business were $358,042, a decrease of $21,595, or 6%, from $379,637 during the prior year to date period. The growth in sales of new products in the third quarter noted above, was not enough to offset declines in overall sales in this segment in the first two fiscal quarters of 2025 driven in large part by ongoing challenging market conditions.

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Index			JOHNSON OUTDOORS INC.

Net sales for the Camping & Watercraft Recreation business were $46,211 for the nine months ended June 27, 2025, a decrease of $6,760, or 13%, from the prior year net sales during the same period of $52,971. As discussed above, the decrease over the prior year to date period is mainly attributable to $7,577 of Eureka! sales in the prior year to date period that were not repeated in the current fiscal year due to the exit of the brand.

Diving net sales for the nine months ended June 27, 2025 were $52,705, which declined $1,558, or 3%, compared to net sales of $54,263 for the nine months ended June 28, 2024, due to continued soft market demand for our Diving segment products across most geographic regions during the first two fiscal quarters of 2025. Foreign currency translation had a favorable impact of less than 1% on sales in this segment versus the prior year to date period.

Cost of Sales

Cost of sales for the three months ended June 27, 2025 of $112,728 increased $2,078 compared to $110,650 for the three months ended June 28, 2024, due primarily to the increase in sales volumes over the prior year quarter.

Cost of sales for the nine months ended June 27, 2025 of $297,677 decreased $13,188 compared to $310,865 for the nine months ended June 28, 2024, mainly due to the decrease in sales volumes between year-to-date periods, partially offset by a shift in mix to higher cost products between year-to-date periods.

Gross Profit Margin

For the three months ended June 27, 2025, gross profit as a percentage of net sales increased to 37.6% compared to 35.8% in the three month period ended June 28, 2024, mainly as a result of improved overhead absorption driven by higher sales volumes between periods.

For the nine months ended June 27, 2025, gross profit as a percentage of net sales was 34.8% compared to 36.2% in the nine month period ended June 28, 2024. The decrease in gross profit percentage over the prior year-to-date period was primarily due to promotional pricing on end-of-life products and a shift in mix to higher cost products between year-to-date periods.

Operating Expenses

Operating expenses were $60,597 for the three months ended June 27, 2025, compared to $62,328 for the three months ended June 28, 2024, for a decrease of $1,731 between quarters. The main drivers of the decrease were lower commission rates, reduced promotional expenses, and lower professional services expenses, partially offset by a $2,012 increase in expense related to the Company's deferred compensation plan between quarters. The deferred compensation expense is entirely offset in Other Income, as discussed below.

Operating expenses were $166,984 for the nine months ended June 27, 2025, compared to $176,820 for the nine months ended June 28, 2024, for a decrease of $9,836 between year-to-date periods. Decreased sales volume-driven expenses and a $3,948 decrease in expense related to the Company's deferred compensation plan contributed to the variance versus the prior year-to-date period. The decrease in deferred compensation expense is entirely offset in Other Income, as discussed below.

Operating Profit/Loss

Operating profit on a consolidated basis for the three month period ended June 27, 2025 was $7,330, compared to operating loss of $506 in the third quarter of the prior fiscal year. As discussed above, the increase in operating profit between quarters was driven by an increase in sales, gross margin improvements and a reduction in operating expenses between periods.

Operating loss on a consolidated basis for the nine month period ended June 27, 2025 was $8,008, compared to an operating loss of $713 in the prior year to date period. As discussed above, the increase in operating loss between periods was driven primarily by lower sales volumes, promotional pricing and a shift in product mix toward lower margin products between year-to-date periods.

Interest

Interest expense was $49 and $37 for the three months ended June 27, 2025 and June 28, 2024, respectively, and $164 and $115 for the nine months ended June 27, 2025 and June 28, 2024, respectively.

Interest income was $927 and $1,123 for the three months ended June 27, 2025 and June 28, 2024, respectively, and $2,585 and $3,178 for the nine months ended June 27, 2025 and June 28, 2024, respectively.

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Index			JOHNSON OUTDOORS INC.

Other Expense (Income), net

Other income was $2,292 for the three months ended June 27, 2025 compared to $327 in the prior year period. The main driver of the $1,965 increase over the prior year quarter was a $2,012 increase in net investment gains and earnings on the assets related to the Company’s non-qualified deferred compensation plan in the current year quarter over the prior year quarter, entirely offset in operating expenses as noted above. For the three months ended June 27, 2025, foreign currency exchange losses were $456 compared to $28 for the three months ended June 28, 2024.

For the nine months ended June 27, 2025, other income was $1,318, compared to $7,468 in the nine months ended June 28, 2024. The $6,150 decrease between year-to-date periods was mostly attributable to a $3,948 decrease in net investment gains and earnings on the assets related to the Company’s non-qualified deferred compensation plan in the current year to date period over the prior year to date period, entirely offset as a reduction to operating expense as noted above. Additionally, the prior year to date period included a gain on the sale of a building of approximately $1,900. For the nine months ended June 27, 2025, foreign currency exchange losses were $274 compared to $173 for the nine months ended June 28, 2024.

Income Tax Expense

The Company’s provision for income taxes is based upon estimated annual effective tax rates in the tax jurisdictions in which the Company operates. The effective tax rates for the three and nine month periods ended June 27, 2025 were an expense of 26.3% and a benefit of 22.8%, respectively, compared to a benefit of 78.8% and an expense of 21.2% in the corresponding periods of the prior year.

Net Income/Loss

Net income for the three months ended June 27, 2025 was $7,742, or $0.75 per diluted common class A and B share, compared to $1,622, or $0.16 per diluted common class A and B share, for the third quarter of the prior fiscal year.

Net loss for the nine months ended June 27, 2025 was $5,244, or $0.52 per diluted common class A and B share, compared to net income of $7,733, or $0.75 per diluted common class A and B share, for the third quarter of the prior fiscal year.

Liquidity and Financial Condition

Cash and cash equivalents and short term investments totaled $161,022 as of June 27, 2025, compared to $148,369 as of June 28, 2024. The Company’s debt to total capitalization ratio was 0% as of June 27, 2025 and June 28, 2024. The Company’s total debt balance was $0 as of each of June 27, 2025 and June 28, 2024. See “Note 11 – Indebtedness” in the notes to the Company’s accompanying condensed consolidated financial statements for further discussion.

Accounts receivable, net of allowance for credit losses, were $81,993 as of June 27, 2025, an increase of $2,400 compared to $79,593 as of June 28, 2024. The increase is consistent with the increased sales volumes over the prior year quarter. Inventories were $163,732 as of June 27, 2025, a decrease of $59,428, compared to $223,160 as of June 28, 2024. The decrease is consistent with the Company's ongoing efforts to reduce inventory balances. Accounts payable were $43,478 at June 27, 2025 compared to $43,153 as of June 28, 2024.

The Company’s cash flows from operating, investing and financing activities, as presented in the Company’s accompanying Condensed Consolidated Statements of Cash Flows, are summarized in the following table:


	Nine months ended
(thousands)	June 27, 2025		June 28, 2024
Cash provided by (used for):
Operating activities	$	32,810	$	21,899
Investing activities	(10,002)		3,225
Financing activities	(10,142)		(10,136)
Effect of foreign currency rate changes on cash	527		(19)
Increase in cash and cash equivalents	$	13,193	$	14,969

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Index			JOHNSON OUTDOORS INC.

Operating Activities

Cash provided by operations totaled $32,810 for the nine months ended June 27, 2025 compared to $21,899 during the corresponding period of the prior fiscal year. The increase in cash provided by operations over the prior year nine month period was due primarily to cash provided by working capital reductions between quarters, partially offset by lower income on decreased sales volumes between year-to-date periods. Depreciation and amortization charges were $15,299 for the nine month period ended June 27, 2025 compared to $14,799 for the corresponding period of the prior year.

Investing Activities

Cash used for investing activities totaled $10,002 for the nine months ended June 27, 2025 compared to cash provided by investing activities of $3,225 for the corresponding period of the prior fiscal year. Current year cash used for investing activities reflects $12,197 paid to acquire a business, partially offset by the maturity of investments of $14,021. The prior year period included proceeds from maturity of investments of $19,650, as well as proceeds from the sale of a building of $2,244. Capital expenditures were $11,826 in the nine months ended June 27, 2025, compared to $16,449 in the prior year to date period which included investments in expansion of Fishing facilities to accommodate additional production. Any additional capital expenditures in fiscal 2025 are expected to be funded by working capital.

Financing Activities

Cash used for financing activities totaled $10,142 for the nine months ended June 27, 2025 compared to $10,136 for the nine month period ended June 28, 2024 and, for both periods, represents the payment of dividends and purchase of treasury stock. The Company had no debt during either nine month period ended June 27, 2025 and June 28, 2024. See Note 11 "Indebtedness" to the accompanying Condensed Consolidated Financial Statements for additional information on our credit facilities.

As of June 27, 2025 the Company held approximately $66,152 of cash, cash equivalents and short-term investments in bank accounts in foreign taxing jurisdictions.

Contractual Obligations and Off Balance Sheet Arrangements

The Company has contractual obligations and commitments to make future payments including under operating leases and open purchase orders. There have been no changes outside of the ordinary course of business in the specified contractual obligations during the quarter ended June 27, 2025.

The Company utilizes letters of credit primarily as security for the payment of future claims under its workers compensation insurance. Letters of credit outstanding were approximately $67 and $67 as of June 27, 2025 and June 28, 2024, respectively.

The Company has no other off-balance sheet arrangements.

Critical Accounting Policies and Estimates

The Company’s critical accounting policies and estimates are identified in the Company’s Annual Report on Form 10-K for the fiscal year ending September 27, 2024 in Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading “Critical Accounting Estimates”, which was filed with the Securities and Exchange Commission on December 11, 2024. There were no significant changes to the Company’s critical accounting policies and estimates during the nine months ended June 27, 2025.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company is exposed to market risk in foreign currency exchange rates, interest rates, commodity prices and inflation. For a discussion of exposure to market risk, refer to the Company’s Annual Report on Form 10-K for the fiscal year ending September 27, 2024, in Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading “Market Risk Management”, which was filed with the Securities and Exchange Commission on December 11, 2024. There have been no significant changes to our market risk in the nine months ended June 27, 2025.

Item 4. Controls and Procedures

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Index			JOHNSON OUTDOORS INC.

The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that the information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is accumulated and communicated to its management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective at reaching a level of reasonable assurance. It should be noted that in designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost benefit relationship of possible controls and procedures. The Company has designed its disclosure controls and procedures to reach a level of reasonable assurance of achieving the desired control objectives.

There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a‑15(f) and 15d‑15(f) under the Exchange Act) that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II OTHER INFORMATION

Item 1. Legal Proceedings

In the normal course of business, the Company may be involved in various legal proceedings from time to time. We do not believe we are currently involved in any claim or action the ultimate disposition of which would have a material adverse effect on our financial statements.

Item 1A. Risk Factors

There have been no material changes to the risk factors disclosed in our Form 10-K for the fiscal year ending September 27, 2024 as filed with the Securities and Exchange Commission on December 11, 2024.

Item 5. Other Information

During the three month period ended June 27, 2025, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K, nor did the Company during such fiscal quarter adopt or terminate any “Rule 10b5-1 trading arrangement”.

Item 6. Exhibits

See Exhibit Index to this Form 10-Q report.

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Index			JOHNSON OUTDOORS INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			JOHNSON OUTDOORS INC.
Signatures Dated: August 1, 2025
			/s/ Helen P. Johnson-Leipold
			Helen P. Johnson-Leipold
			Chairman and Chief Executive Officer
			(Principal Executive Officer)

			/s/ David W. Johnson
			David W. Johnson
			Vice President and Chief Financial Officer
			(Principal Financial and Accounting Officer)

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Index			JOHNSON OUTDOORS INC.

Exhibit Index to Quarterly Report on Form 10-Q


Exhibit Number			Description

3.1			Articles of Incorporation of the Company as amended through February 17, 2000. (Filed as Exhibit 3.1(a) to the Company’s Form 10-Q for the quarter ended March 31, 2000 and incorporated herein by reference.)

3.2			Bylaws of the Company as amended and restated through December 6, 2010. (Filed as Exhibit 3.2 to the Company’s Form 10-K for the year ended October 1, 2010 and incorporated herein by reference.)

10.1			Second Amendment dated January 29, 2025 to Amended and Restated Credit Agreement dated as of November 15, 2017 among the Company, certain of the Company’s subsidiaries named therein, PNC Bank, National Association, as lender and as administrative agent, PNC Capital Markets LLC, as sole lead arranger and bookrunner, and the other lender named therein. (Filed as Exhibit 10.1 to the Company’s Form 10-Q for the quarter ended December 27, 2024 and incorporated herein by reference.)

31.1			Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2			Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32 (1)			Certification of Periodic Financial Report by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101			The following materials from Johnson Outdoors Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 27, 2025 formatted in XBRL (eXtensible Business Reporting Language) and furnished electronically herewith: (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations; (iii) Condensed Consolidated Statements of Comprehensive (Loss) Income; (iv) Condensed Consolidated Statements of Cash Flows; (v) Condensed Consolidated Statements of Shareholders' Equity and (vi) Notes to Condensed Consolidated Financial Statements. XBRL Instance Document – the XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

104			The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 27, 2025, formatted in Inline XBRL (included in Exhibit 101).

(1) This certification is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

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