Johnson Outdoors Inc. JOUT reported mixed results for the first quarter of fiscal 2025 (ended Dec. 27, 2024). It incurred a quarterly loss, which is wider than the Zacks Consensus Estimate and last year’s reported value. Quarterly net sales surpassed the consensus mark but declined year over year.

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The quarterly results reflect negative impacts of the ongoing market challenges, a cautious retail and trade channel environment, and competitive pressures, leading to weaker demand for the company’s outdoor recreation products. These lower sales pressures were reflected from the dismal year-over-year contributions from the Fishing, Camping & Watercraft Recreation and Diving segments.

Also, lower sales volume and unfavorable product mix hurt the quarter’s bottom line despite the company’s cost-saving initiatives.

Following the results, the JOUT stock lost 9% during the trading session and inched down 0.5% in the after-hours on Monday.

JOUT’s Earnings & Revenue Discussion

The company reported a quarterly loss per share of $1.49, wider than the Zacks Consensus Estimate of a loss per share of $1.30. In the prior-year quarter, the company reported earnings per share of 38 cents.

Net sales of $107.6 million surpassed the consensus mark of $105 million by 2.8% but declined 22% year over year.

Johnson Outdoors’ Segmental Discussion

Fishing: This segment’s net sales declined 25% year over year to $82.5 million. The downtrend was due to challenging consumer and trade dynamics, increased competitive pressure and strong sell-in of new products in last year's quarter.

This segment reported an operating loss of $8.3 million against an operating profit of $11.5 million in the year-ago quarter.

Camping & Watercraft Recreation: The segmental net sales declined year over year to $9.5 million from $10.7 million. The downturn was attributable to declines in overall consumer demand for products in this market, primarily in the overall kayak industry.

This segment reported an operating loss of $0.6 million compared with a loss of $1.7 million in the year-ago quarter.

Diving: This segment’s net sales declined year over year by 10% to $15.7 million from $17.5 million. The decline was mainly due to continued soft market demand across all geographic regions.

This segment reported an operating loss of $0.9 million compared with a loss of $0.6 million in the year-ago quarter.

Operating Highlights & Expenses of JOUT

During the quarter, JOUT’s gross profit declined to $32.2 million from $52.9 million reported a year ago. The gross margin also contracted 820 basis points (bps) year over year to 29.9%. The downtrend was caused by unfavorable overhead absorption as a result of lower sales volumes, promotional pricing on end-of-life products and changes in product mix toward lower-margin products between quarters.

Operating expenses during the quarter were $52.4 million, marginally down from $52.8 million reported a year ago. The company reported an operating loss of $20.2 million against an operating profit of $0.05 million in the year-ago period.

JOUT’s Balance Sheet

As of Dec. 27, 2024, Johnson Outdoors’ cash and cash equivalents amounted to $95.3 million, down from $145.5 million as of fiscal 2024-end.

Inventories as of the quarter end were $201.6 million compared with $209.8 million reported at the end of fiscal 2024.

JOUT’s Zacks Rank & Recent Consumer Discretionary Releases

Johnson Outdoors currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Adtalem Global Education Inc. ATGE posted better-than-expected results in second-quarter fiscal 2025. Earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year, driven by strong enrollment growth and strategic initiatives.

Adtalem's operational excellence strategy, Growth with Purpose, has driven six consecutive quarters of enrollment growth while supporting its mission to develop skilled healthcare professionals. Furthermore, strong demand at Chamberlain University and Walden University drove results. ATGE now expects fiscal 2025 adjusted earnings to be in the band of $6.10-$6.30 per share compared with the earlier prediction of $5.75-$5.95.

Las Vegas Sands Corp. LVS reported fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The metrics declined on a year-over-year basis.

The company reported solid financial and operational performance at Marina Bay Sands, Singapore and continued recovery in the Macao market. LVS continues to execute its strategic objectives and remains optimistic about achieving industry-leading growth in both Macao and Singapore through its ongoing capital investment initiatives. It is optimistic about the introduction of new suite offerings and enhanced service levels and increased tourism spending in Asia.

Royal Caribbean Cruises Ltd. RCL posted mixed fourth-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate while the revenues missed the same. Notably, the top and bottom lines increased on a year-over-year basis.

The company’s performance during the quarter was driven by stronger pricing on close-in demand and continued strength in onboard revenues. Its diversified fleet offerings, accompanied by its commercial and vacation experiences, are witnessing robust demand trends amid an improving global market backdrop. Thanks to these tailwinds, RCL could achieve its Trifecta goals before the schedule, pointing out the benefits it is realizing from the current improving scenario.

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