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

Strong Quarterly Results Beat Expectations

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

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

The company ended the quarter with $107.9 million in cash and short-term investments as of April 3, 2026.

Dividend Update And Balance Sheet Position

In February, Johnson Outdoors approved a quarterly cash dividend for shareholders of record as of April 16, with payment distributed on April 30.

Segment Performance Shows Broad-Based Growth

Fishing segment revenue increased 18% from a year earlier, supported by improved market conditions, stronger competitive positioning, and pricing actions.

Camping and Watercraft Recreation sales rose 1%, driven primarily by increased e-commerce activity. Diving revenue advanced 9% as demand trends improved and online sales continued to grow.

Management Flags Cost Pressures

"Our ongoing efforts to strategically manage costs helped boost margins in the second quarter. At the same time, we are seeing increased cost pressures, along with a modest increase in inventory as we prepare for the upcoming selling season," Chief Financial Officer David W. Johnson said.

"Despite uncertainties in the broader economic environment, we remain focused on our financial discipline and will continue to closely manage the business to balance near-term pressures with long-term value creation," he added.

Stock Reaction

JOUT Price Action: Johnson Outdoors shares were down 2.45% at $52.19 at the time of publication on Friday. The stock is trading near its 52-week high of $53.54, according to Benzinga Pro data.

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