(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
JOHNSON OUTDOORS INC. |
Index | Page No. | ||||||||||
PART I | FINANCIAL INFORMATION | ||||||||||
Item 1. | Financial Statements | ||||||||||
- 1 | |||||||||||
- 2 | |||||||||||
- 3 | |||||||||||
- 4 | |||||||||||
- 5 | |||||||||||
- 6 | |||||||||||
Item 2. | - 19 | ||||||||||
Item 3. | - 24 | ||||||||||
Item 4. | - 24 | ||||||||||
PART II | OTHER INFORMATION | ||||||||||
Item 1. | - 25 | ||||||||||
Item 1A. | - 25 | ||||||||||
Item 5. | - 25 | ||||||||||
Item 6. | - 25 | ||||||||||
- 25 | |||||||||||
- 26 |
JOHNSON OUTDOORS INC. |
Three Months Ended | ||||||||
(thousands, except per share data) | December 29, 2023 | December 30, 2022 | ||||||
Net sales | $ | $ | ||||||
Cost of sales | ||||||||
Gross profit | ||||||||
Operating expenses: | ||||||||
Marketing and selling | ||||||||
Administrative management, finance and information systems | ||||||||
Research and development | ||||||||
Total operating expenses | ||||||||
Operating profit | ||||||||
Interest income | ( | ( | ||||||
Interest expense | ||||||||
Other income, net | ( | ( | ||||||
Profit before income taxes | ||||||||
Income tax expense | ||||||||
Net income | $ | $ | ||||||
Weighted average common shares - Basic: | ||||||||
Class A | ||||||||
Class B | ||||||||
Participating securities | ||||||||
Weighted average common shares - Dilutive | ||||||||
Net income per common share - Basic: | ||||||||
Class A | $ | $ | ||||||
Class B | $ | $ | ||||||
Net income per common share - Diluted: | ||||||||
Class A | $ | $ | ||||||
Class B | $ | $ |
JOHNSON OUTDOORS INC. |
Three Months Ended | ||||||||
(thousands) | December 29, 2023 | December 30, 2022 | ||||||
Net income | $ | $ | ||||||
Other comprehensive income: | ||||||||
Foreign currency translation | ||||||||
Unrealized gain on available-for-sale securities, net of tax | ||||||||
Change in pension plans, net of tax | ||||||||
Total other comprehensive income | ||||||||
Total comprehensive income | $ | $ |
JOHNSON OUTDOORS INC. |
(thousands, except share data) | December 29, 2023 | September 29, 2023 | December 30, 2022 | ||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||
Short term investments | |||||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Investments | |||||||||||
Property, plant and equipment, net of accumulated depreciation of $ | |||||||||||
Right of use assets | |||||||||||
Deferred income taxes | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | $ | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | $ | ||||||||
Current lease liability | |||||||||||
Accrued liabilities: | |||||||||||
Salaries, wages and benefits | |||||||||||
Accrued warranty | |||||||||||
Accrued discounts and returns | |||||||||||
Accrued customer programs | |||||||||||
Other | |||||||||||
Total current liabilities | |||||||||||
Non-current lease liability | |||||||||||
Deferred income taxes | |||||||||||
Retirement benefits | |||||||||||
Deferred compensation liability | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders’ equity: | |||||||||||
Common stock: | |||||||||||
Class A shares issued and outstanding: | |||||||||||
Class B shares issued and outstanding: | |||||||||||
Capital in excess of par value | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income | |||||||||||
Treasury stock at cost, shares of Class A common stock: | ( | ( | ( | ||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ | $ |
JOHNSON OUTDOORS INC. |
Three Months Ended December 29, 2023 | |||||||||||||||||||||||||||||||||||
(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 29, 2023 | $ | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||
Dividends declared | — | — | — | ( | — | — | |||||||||||||||||||||||||||||
Award of non-vested shares | ( | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | ||||||||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||
Change in pension plans, net of tax of $ | — | — | — | — | — | ||||||||||||||||||||||||||||||
Purchase of treasury stock at cost | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||
BALANCE AT DECEMBER 29, 2023 | $ | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||||
Three Months Ended December 30, 2022 | |||||||||||||||||||||||||||||||||||
(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 30, 2022 | $ | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||
Dividends declared | — | — | — | ( | — | — | |||||||||||||||||||||||||||||
Award of non-vested shares | ( | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | ||||||||||||||||||||||||||||||
Change in pension plans, net of tax of $ | — | — | — | — | — | ||||||||||||||||||||||||||||||
Purchase of treasury stock at cost | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||
BALANCE AT DECEMBER 30, 2022 | $ | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||||
JOHNSON OUTDOORS INC. |
Cash paid for taxes | Three Months Ended | |||||||
(thousands) | December 29, 2023 | December 30, 2022 | ||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash used for operating activities: | ||||||||
Depreciation | ||||||||
Amortization of intangible assets | ||||||||
Amortization of deferred financing costs | ||||||||
Stock based compensation | ||||||||
(Gain) loss on disposal of productive assets | ( | |||||||
Deferred income taxes | ( | |||||||
Change in operating assets and liabilities: | ||||||||
Accounts receivable, net | ( | ( | ||||||
Inventories, net | ( | ( | ||||||
Accounts payable and accrued liabilities | ( | |||||||
Other current assets | ( | ( | ||||||
Other long-term liabilities | ( | |||||||
Other, net | ( | |||||||
( | ( | |||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | ||||||||
Proceeds from maturity of short-term investments | ||||||||
Proceeds from sale of productive assets | ||||||||
Capital expenditures | ( | ( | ||||||
( | ||||||||
CASH USED FOR FINANCING ACTIVITIES | ||||||||
Dividends paid | ( | ( | ||||||
Purchases of treasury stock | ( | ( | ||||||
( | ( | |||||||
Effect of foreign currency rate changes on cash | ||||||||
Decrease in cash and cash equivalents | ( | ( | ||||||
CASH AND CASH EQUIVALENTS | ||||||||
Beginning of period | ||||||||
End of period | $ | $ | ||||||
Supplemental Disclosure: | ||||||||
Cash paid for taxes | $ | $ | ||||||
Cash paid for interest | ||||||||
Non-cash treasury stock activity |
JOHNSON OUTDOORS INC. |
JOHNSON OUTDOORS INC. |
Three Months Ended | ||||||||
December 29, 2023 | December 30, 2022 | |||||||
Dividends declared per common share: | ||||||||
Class A | $ | $ | ||||||
Class B | $ | $ |
JOHNSON OUTDOORS INC. |
Shares | Weighted Average Grant Price | |||||||
Non-vested stock at September 29, 2023 | $ | |||||||
Non-vested stock grants | ||||||||
Restricted stock vested | ( | |||||||
Non-vested stock at December 29, 2023 |
Number of RSUs | Weighted Average Grant Price | |||||||
RSUs at September 29, 2023 | $ | |||||||
RSUs granted | ||||||||
RSUs vested | ( | |||||||
RSUs at December 29, 2023 |
JOHNSON OUTDOORS INC. |
Three months ended | ||||||||
December 29, 2023 | December 30, 2022 | |||||||
Lease Cost | ||||||||
Operating lease costs | $ | $ | ||||||
Short-term lease costs | ||||||||
Variable lease costs | ||||||||
Total lease cost | $ | $ |
JOHNSON OUTDOORS INC. |
Three months ended | ||||||||
December 29, 2023 | December 30, 2022 | |||||||
Operating leases: | ||||||||
Operating lease ROU assets | $ | $ | ||||||
Current operating lease liabilities | ||||||||
Non-current operating lease liabilities | ||||||||
Total operating lease liabilities | $ | $ | ||||||
Weighted average remaining lease term (in years) | ||||||||
Weighted average discount rate | % | % | ||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | $ | ||||||
ROU assets obtained in exchange for lease liabilities | $ | $ |
Year | Related parties included in total | Total | |||||||||
Remainder of 2024 | $ | $ | |||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 | |||||||||||
Thereafter | |||||||||||
Total undiscounted lease payments | |||||||||||
Less: Imputed interest | ( | ( | |||||||||
Total net lease liability | $ | $ |
Three Months Ended | ||||||||
(thousands, except tax rate data) | December 29, 2023 | December 30, 2022 | ||||||
Profit before income taxes | $ | $ | ||||||
Income tax expense | ||||||||
Effective income tax rate | % | % |
JOHNSON OUTDOORS INC. |
December 29, 2023 | December 30, 2022 | ||||
Indonesia | Indonesia | ||||
Switzerland | Switzerland |
December 29, 2023 | September 29, 2023 | December 30, 2022 | |||||||||
Raw materials | $ | $ | $ | ||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
$ | $ | $ |
December 29, 2023 | December 30, 2022 | |||||||
Balance at beginning of period | $ | $ | ||||||
Amount attributable to movements in foreign currency rates | ||||||||
Balance at end of period | $ | $ |
JOHNSON OUTDOORS INC. |
December 29, 2023 | December 30, 2022 | |||||||
Balance at beginning of period | $ | $ | ||||||
Expense accruals for warranties issued during the period | ||||||||
Less current period warranty claims paid | ||||||||
Balance at end of period | $ | $ |
JOHNSON OUTDOORS INC. |
JOHNSON OUTDOORS INC. |
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | ||||||||||||||
Rabbi trust assets | $ | $ | $ | $ |
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | ||||||||||||||
Rabbi trust assets | $ | $ | $ | $ |
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | ||||||||||||||
Rabbi trust assets | $ | $ | $ | $ |
Three Months Ended | |||||||||||
Location of income recognized in Statement of Operations | December 29, 2023 | December 30, 2022 | |||||||||
Rabbi trust assets | Other income, net | $ | $ |
JOHNSON OUTDOORS INC. |
Amortized Cost | Fair Value | Gross unrealized gains | Gross unrealized losses | |||||||||||
Fixed rate US Government Bonds | $ | $ | $ | $ | ||||||||||
Fixed rate Canadian Government Bonds | $ | $ | $ | $ | ||||||||||
Total | $ | $ | $ | $ |
Amortized Cost | Fair Value | Gross unrealized gains | Gross unrealized losses | |||||||||||
Fixed rate US Government Bonds | $ | $ | $ | $ | ||||||||||
Fixed rate Canadian Government Bonds | $ | $ | $ | $ | ||||||||||
Total | $ | $ | $ | $ |
JOHNSON OUTDOORS INC. |
JOHNSON OUTDOORS INC. |
JOHNSON OUTDOORS INC. |
Three Months Ended | |||||||||||
December 29, 2023 | December 30, 2022 | September 29, 2023 | |||||||||
Net sales: | |||||||||||
Fishing: | |||||||||||
Unaffiliated customers | $ | $ | |||||||||
Interunit transfers | |||||||||||
Camping: | |||||||||||
Unaffiliated customers | |||||||||||
Interunit transfers | |||||||||||
Watercraft Recreation: | |||||||||||
Unaffiliated customers | |||||||||||
Interunit transfers | |||||||||||
Diving | |||||||||||
Unaffiliated customers | |||||||||||
Interunit transfers | |||||||||||
Other / Corporate | |||||||||||
Eliminations | ( | ( | |||||||||
Total | $ | $ | |||||||||
Operating profit (loss): | |||||||||||
Fishing | $ | $ | |||||||||
Camping | |||||||||||
Watercraft Recreation | ( | ( | |||||||||
Diving | ( | ||||||||||
Other / Corporate | ( | ( | |||||||||
$ | $ | ||||||||||
Total assets (end of period): | |||||||||||
Fishing | $ | $ | $ | ||||||||
Camping | |||||||||||
Watercraft Recreation | |||||||||||
Diving | |||||||||||
Other / Corporate | |||||||||||
$ | $ | $ |
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 29, 2023 | $ | $ | ( | $ | ( | $ | ||||||||
Other comprehensive loss before reclassifications | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ||||||||||||||
Tax effects | ( | ( | ( | |||||||||||
Balance at December 29, 2023 | $ | $ | ( | $ | ( | $ | ||||||||
Foreign Currency Translation Adjustment | Unamortized Loss on Defined Benefit Pension Plans | Accumulated Other Comprehensive Income (Loss) | |||||||||
September 30, 2022 | $ | $ | ( | $ | |||||||
Other comprehensive income before reclassifications | |||||||||||
Amounts reclassified from accumulated other comprehensive income | |||||||||||
Tax effects | ( | ( | |||||||||
Balance at December 30, 2022 | $ | $ | ( | $ | |||||||
Three Months Ended | |||||||||||
December 29, 2023 | December 30, 2022 | Statement of Operations Presentation | |||||||||
Unamortized loss on defined benefit pension plans: | |||||||||||
Amortization of loss | $ | $ | Other income and expense | ||||||||
Tax effects | ( | ( | Income tax expense | ||||||||
Total reclassifications for the period | $ | $ |
JOHNSON OUTDOORS INC. |
JOHNSON OUTDOORS INC. |
Fiscal Year | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
Quarter Ended | Net Sales | Operating Profit | Net Sales | Operating Profit | Net Sales | Operating Profit | ||||||||||||||
December | 27 | % | 47 | % | 21 | % | 21 | % | 22 | % | 22 | % | ||||||||
March | 30 | % | 97 | % | 26 | % | 23 | % | 27 | % | 32 | % | ||||||||
June | 28 | % | 149 | % | 27 | % | 36 | % | 29 | % | 34 | % | ||||||||
September | 15 | % | -193 | % | 26 | % | 20 | % | 22 | % | 12 | % | ||||||||
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended | ||||||||
December 29, 2023 | December 30, 2022 | |||||||
Net sales: | ||||||||
Fishing | $ | 110,492 | $ | 138,041 | ||||
Camping | 5,913 | 11,613 | ||||||
Watercraft Recreation | 4,813 | 9,658 | ||||||
Diving | 17,478 | 19,059 | ||||||
Other / Corporate / Eliminations | (52) | (34) | ||||||
Total | $ | 138,644 | $ | 178,337 | ||||
Operating profit (loss): | ||||||||
Fishing | $ | 11,529 | $ | 15,572 | ||||
Camping | 358 | 753 | ||||||
Watercraft Recreation | (2,078) | (415) | ||||||
Diving | (578) | 13 | ||||||
Other / Corporate / Eliminations | (9,185) | (10,451) | ||||||
Total | $ | 46 | $ | 5,472 |
JOHNSON OUTDOORS INC. |
JOHNSON OUTDOORS INC. |
Three months ended | ||||||||
(thousands) | December 29, 2023 | December 30, 2022 | ||||||
Cash (used for) provided by: | ||||||||
Operating activities | $ | (33,687) | $ | (17,570) | ||||
Investing activities | 4,685 | (6,649) | ||||||
Financing activities | (3,588) | (3,570) | ||||||
Effect of foreign currency rate changes on cash | 1,197 | 1,408 | ||||||
Decrease in cash and cash equivalents | $ | (31,393) | $ | (26,381) |
JOHNSON OUTDOORS INC. |
JOHNSON OUTDOORS INC. |
JOHNSON OUTDOORS INC. | |||||
Signatures Dated: February 2, 2024 | |||||
/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) |
JOHNSON OUTDOORS INC. |
Exhibit Number | Description | ||||
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.) | |||||
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.) | |||||
Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
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 December 29, 2023 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 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 December 29, 2023, formatted in Inline XBRL (included in Exhibit 101). |
1) |
I have reviewed this Quarterly Report on Form 10-Q of Johnson Outdoors Inc.;
|
2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4) |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5) |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the
audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
registrant’s ability to record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
February 2, 2024
|
/s/ Helen P. Johnson-Leipold
|
|
|
|
Helen P. Johnson-Leipold
|
|
|
|
Chairman and Chief Executive Officer
|
|
1) |
I have reviewed this Quarterly Report on Form 10-Q of Johnson Outdoors Inc.;
|
2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4) |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5) |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the
audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
registrant’s ability to record, process, summarize and report financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
February 2, 2024
|
/s/ David W. Johnson
|
|
|
|
David W. Johnson
|
|
|
|
Vice President and Chief Financial Officer
|
|
|
|
Treasurer
|
|
/s/ Helen P. Johnson-Leipold
|
|
Helen P. Johnson-Leipold
|
|
Chairman and Chief Executive Officer
|
|
February 2, 2024
|
|
/s/ David W. Johnson
|
|
David W. Johnson
|
|
Vice President and Chief Financial Officer
|
|
Treasurer
|
|
February 2, 2024
|
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 29, 2023 |
Dec. 30, 2022 |
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Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,955 | $ 5,879 |
Other comprehensive income: | ||
Foreign currency translation | 3,059 | 2,937 |
Unrealized gain on available-for-sale securities, net of tax | 102 | 0 |
Change in pension plans, net of tax | 7 | 8 |
Total other comprehensive income | 3,168 | 2,945 |
Total comprehensive income | $ 7,123 | $ 8,824 |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands |
Dec. 29, 2023 |
Sep. 29, 2023 |
Dec. 30, 2022 |
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Accumulated depreciation | $ 180,947 | $ 177,426 | $ 176,501 |
Treasury stock (in shares) | 30,003 | 25,342 | 31,265 |
Class A | |||
Common stock, issued (in shares) | 9,076,240 | 9,043,189 | 9,033,439 |
Common stock, shares outstanding (in shares) | 9,076,240 | 9,043,189 | 9,033,439 |
Class B | |||
Common stock, issued (in shares) | 1,207,760 | 1,207,760 | 1,207,798 |
Common stock, shares outstanding (in shares) | 1,207,760 | 1,207,760 | 1,207,798 |
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 29, 2023 |
Dec. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||
Change in pension plans, tax | $ 3 | $ 3 |
BASIS OF PRESENTATION |
3 Months Ended |
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Dec. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 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 December 29, 2023 and December 30, 2022, and their results of operations for the three month periods then ended and cash flows for the three 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 29, 2023 which was filed with the Securities and Exchange Commission on December 8, 2023. Certain reclassifications have been made to prior year financial statements to conform to the current year financial statement presentation. These reclassifications had no effect on net earnings. Due to seasonal variations and other factors, some of which are described herein, the results of operations for the three months ended December 29, 2023 are not necessarily indicative of the results to be expected for the Company’s full 2024 fiscal year. The current economic and business environment, including the level of demand in the consumer markets for outdoor recreation products, seasonality effects, and end consumer purchasing actions, all stemming therefrom, is beyond our control and remains highly uncertain and cannot be predicted at this time. All monetary amounts, other than share and per share amounts, are stated in thousands.
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ACCOUNTS RECEIVABLE |
3 Months Ended |
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Dec. 29, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable are stated net of allowances for doubtful accounts of $1,108, $907 and $1,151 as of December 29, 2023, September 29, 2023 and December 30, 2022, respectively. The determination of the allowance for doubtful accounts 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 doubtful accounts 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 doubtful accounts after collection efforts have been exhausted. The Company typically does not require collateral on its accounts receivable.
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EARNINGS PER SHARE (“EPS”) |
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Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE (“EPS”) | 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 periods ended December 29, 2023 and December 30, 2022, 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 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 “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, 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 periods ended December 29, 2023 and December 30, 2022, 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. 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 63,061 and 60,390 for the three months ended December 29, 2023 and December 30, 2022, 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 65,228 and 53,699 for the three months ended December 29, 2023 and December 30, 2022, respectively. Dividends per share Dividends per share for the three month periods ended December 29, 2023 and December 30, 2022 were as follows:
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STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS |
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Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS | 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 413,176 shares of the Company’s Class A common stock available for future grant to non-employee directors and key executives at December 29, 2023. Share awards previously made under the Company's 2012 Non-Employee Director Stock Ownership Plan and its 2010 Long-Term Stock Incentive 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 four years from the date of grant for stock granted to officers and employees. 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. A summary of non-vested stock activity for the three months ended December 29, 2023 related to the Company’s stock ownership plans is as follows:
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 2,330 and 2,289 during the three month periods ended December 29, 2023 and December 30, 2022, respectively. Stock compensation expense, net of forfeitures, related to non-vested stock was $428 and $456 for the three month periods ended December 29, 2023 and December 30, 2022, respectively. Unrecognized compensation cost related to non-vested stock as of December 29, 2023 was $2,385, 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 three month periods ended December 29, 2023 and December 30, 2022 was $409 and $429, 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, subject to satisfaction of applicable performance criteria, and 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 three months ended December 29, 2023 follows:
Stock compensation expense, net of forfeitures, related to RSUs was $139 and $476 for the three month periods ended December 29, 2023 and December 30, 2022, respectively. Unrecognized compensation cost related to non-vested RSUs as of December 29, 2023 was $2,054, which amount will be amortized to expense through September 2026 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. Shares tendered back to the Company for this purpose were 2,331 and 5,055 during the three month periods ended December 29, 2023 and December 30, 2022, respectively. The fair value of restricted stock units recognized as a tax deduction during the three month periods ended December 29, 2023 and December 30, 2022 was $1,015 and $2,247, 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. 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 have adopted the Johnson Outdoors Inc. 2009 Employees’ Stock Purchase Plan, which was most recently amended on March 2, 2017, and which provides 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 December 29, 2023, the Company issued 0 shares of Class A common stock and recognized $31 of expense in connection with the Employees' Stock Purchase Plan. During the three month period ended December 30, 2022, the Company issued 0 shares of Class A common stock and recognized $21 of expense in connection with the Plan.
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | 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 December 29, 2023, the Company had approximately 200 leases, with remaining terms ranging from less than one year to 16 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 months ended December 29, 2023 and December 30, 2022 were as follows:
Included in the amounts in the table above was rent expense to related parties of $314 and $314 for the three months ended December 29, 2023 and December 30, 2022, respectively. As of December 29, 2023, 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 December 29, 2023. As of December 29, 2023, 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:
Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at December 29, 2023 were as follows:
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INCOME TAXES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES For the three months ended December 29, 2023 and December 30, 2022, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:
The increase in the effective tax rate for the three months ended December 29, 2023 compared to the three months ended December 30, 2022 was primarily related to a change in the geographic mix of profits or losses from a tax perspective for the current year period, as compared to the prior year period. The Company's effective tax rate is impacted by valuation allowances in certain tax jurisdictions and, as a result, changes in the geographic source of Company profits or losses between periods can have varying impacts on the Company's effective tax rate during a particular period. 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 December 29, 2023 and December 30, 2022 were:
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’s 2024 fiscal year tax expense is anticipated to be unchanged related to uncertain income tax positions. In accordance with its accounting policy, the Company recognizes accrued interest and penalties related to unrecognized benefits as a component of income tax expense.
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INVENTORIES |
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Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | 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:
The Company’s inventory levels have been significantly impacted over recent periods in connection with swings in demand for the Company’s products coming out of the recent COVID-19 pandemic. See below under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional discussion on the impact of recent fluctuations in the Company’s net sales, including changes in demand for the Company’s products, on the Company’s inventory balances.
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GOODWILL |
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Dec. 29, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL | GOODWILL The changes in goodwill during the three months ended December 29, 2023 and December 30, 2022 were as follows:
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 13) below.
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WARRANTIES |
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
WARRANTIES | 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 three months ended December 29, 2023 and December 30, 2022.
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CONTINGENCIES |
3 Months Ended |
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Dec. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | 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.
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INDEBTEDNESS |
3 Months Ended |
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Dec. 29, 2023 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS The Company had no debt outstanding at December 29, 2023, September 29, 2023, or December 30, 2022. 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 increase 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. 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 Debt 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) and the 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). For the first three quarters of fiscal 2023, the interest rate on the Revolver was based on LIBOR plus an applicable margin. Beginning in the fourth quarter of fiscal 2023, upon adoption of topic 848, 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 December 29, 2023 and December 30, 2022 were approximately 6.5% and 5.4%, respectively. 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. Other Borrowings The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of December 29, 2023 or December 30, 2022. 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 $173 as of December 29, 2023 and December 30, 2022, respectively.
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
3 Months Ended |
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Dec. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The following disclosures describe the Company’s objectives in using derivative instruments, the business purpose or context for using derivative instruments, and how the Company believes the use of derivative instruments helps achieve the stated objectives. In addition, the following disclosures describe the effects of the Company’s use of derivative instruments and hedging activities on its financial statements. Foreign Exchange Risk The Company has significant foreign operations, for which the functional currencies are denominated primarily in euros, Swiss francs, Hong Kong dollars and Canadian dollars. As the values of the currencies of the foreign countries in which the Company has operations increase or decrease relative to the U.S. dollar, the sales, expenses, profits, losses, assets and liabilities of the Company’s foreign operations, as reported in the Company’s consolidated financial statements, increase or decrease, accordingly. Approximately 13% of the Company’s revenues for the three month period ended December 29, 2023 were denominated in currencies other than the U.S. dollar. Approximately 6% were denominated in euros, approximately 5% were denominated in Canadian dollars and approximately 2% were denominated in Hong Kong dollars, with the remaining revenues denominated in various other foreign currencies. Changes in foreign currency exchange rates can cause the Company to experience unexpected financial losses or cash flow needs. The Company may mitigate a portion of the fluctuations in certain foreign currencies through the use of foreign currency forward contracts. Foreign currency forward contracts enable the Company to lock in the foreign currency exchange rate to be paid or received for a fixed amount of currency at a specified date in the future. The Company may use such foreign currency forward contracts to mitigate the risk associated with changes in foreign currency exchange rates on financial instruments and known commitments, including commitments for inventory purchases, denominated in foreign currencies. As of December 29, 2023 and December 30, 2022, the Company held no foreign currency forward contracts.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | 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 cash, cash equivalents, accounts receivable, and accounts payable approximated their fair values at December 29, 2023, September 29, 2023 and December 30, 2022 due to the short term maturities of these instruments. 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 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. The following table summarizes the Company’s financial assets measured at fair value as of December 29, 2023:
The following table summarizes the Company’s financial assets measured at fair value as of September 29, 2023:
The following table summarizes the Company’s financial assets measured at fair value as of December 30, 2022:
The effect of changes in the fair value of financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three month periods ended December 29, 2023 and December 30, 2022 was:
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CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES | 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. During the third quarter of fiscal 2023, the Company invested in marketable securities. 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 stockholders' equity. At December 29, 2023, 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 December 29, 2023:
The following table summarizes the Company’s marketable securities measured at fair value as of September 29, 2023:
Proceeds from the maturities of available for sale securities were $7,500 and $0 for the three month periods ended December 29, 2023 and December 30, 2022, respectively. There were no sales or purchases of available-for-sale securities for the three month periods ended December 29, 2023 and December 30, 2022, respectively. No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods. The contractual maturities of the marketable securities held at December 29, 2023 are as follows: $29,094 within one year, classified as Short-Term Investments on the Condensed Consolidated Balance Sheets, and $4,668 greater than one year, but less than five years, classified as Investments on the Condensed Consolidated Balance Sheets.
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NEW ACCOUNTING PRONOUNCEMENTS |
3 Months Ended |
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Dec. 29, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Recently issued accounting pronouncements In December 2023, the Financial Account Standards Board (FASB), issued Accounting Standards Update (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, on a retrospective basis, with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on its financial statements and disclosures. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU covers a variety of codification topics, and the effective date for each amendment will be the date on which the SEC‘s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company is currently evaluating the potential impact of this guidance on its financial statements and disclosures. Recently adopted accounting pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 is intended to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. Subsequently in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848)—Deferral of the Sunset Date of Topic 848, which delayed the effective date to December 31, 2024. The Company adopted Topic 848 in the fourth fiscal quarter of 2023. The adoption of this pronouncement did not have a material impact on its financial statements and disclosures.
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REVENUES |
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Dec. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | 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 December 29, 2023, the right to returns asset was $1,108 and the accrued returns liability was $2,723. At December 30, 2022, the right to returns asset was $834 and the accrued returns liability was $2,317. 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. The Company generally 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. Nonetheless, the revenue recognition policies are similar among all the various products sold by the Company. See Note 17 for required disclosures of disaggregated revenue.
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SEGMENTS OF BUSINESS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENTS OF BUSINESS | 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. During the three month period ended December 29, 2023, combined net sales to two customers of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $54,147 of the Company's consolidated revenues. During the three month period ended December 30, 2022, combined net sales to two customers of the Company's Fishing, Camping and Watercraft Recreation segments represented approximately $50,062 of the Company's consolidated revenues. During the second quarter of fiscal 2023, the Company sold the Military and Commercial Tent product lines of its Camping segment to a third party in an asset sale. The sale did not include the Eureka! brand name or the Eureka! consumer/recreational Camping business line. Subsequently, during the fourth quarter of fiscal 2023, the Company developed and approved plans to fully exit the Eureka! brand of the Camping segment, which includes liquidating all remaining consumer inventory of Eureka! branded products and winding down operations. The Company incurred expenses of approximately $4,800 in the fourth quarter of fiscal 2023 related to the wind down of the Eureka! branded business. Other costs incurred during fiscal 2024 will be expensed as incurred and are not expected to be material. During the first quarter of fiscal 2024, the Fishing segment of the Company sold a building, which resulted in a gain of approximately $1,900, which was recorded in Other income, net in the accompanying Condensed Consolidated Statements of Operations. Net sales and operating profit include both sales to customers, as reported in the Company’s accompanying Condensed Consolidated Statements of Operations, and interunit transfers, which are priced to recover cost plus an appropriate profit margin. Total assets represent assets that are used in the Company’s operations in each business segment at the end of the periods presented. A summary of the Company’s operations by business segment is presented below:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the three months ended December 29, 2023 were as follows:
The changes in AOCI by component, net of tax, for the three months ended December 30, 2022 were as follows:
The reclassifications out of AOCI for the three months ended December 29, 2023 and December 30, 2022 were as follows:
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Dec. 29, 2023 |
Dec. 30, 2022 |
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Pay vs Performance Disclosure | ||
Total reclassifications for the period | $ 3,955 | $ 5,879 |
Insider Trading Arrangements |
3 Months Ended |
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Dec. 29, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies) |
3 Months Ended |
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Dec. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 December 29, 2023 and December 30, 2022, and their results of operations for the three month periods then ended and cash flows for the three 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 29, 2023 which was filed with the Securities and Exchange Commission on December 8, 2023. Certain reclassifications have been made to prior year financial statements to conform to the current year financial statement presentation. These reclassifications had no effect on net earnings. Due to seasonal variations and other factors, some of which are described herein, the results of operations for the three months ended December 29, 2023 are not necessarily indicative of the results to be expected for the Company’s full 2024 fiscal year. The current economic and business environment, including the level of demand in the consumer markets for outdoor recreation products, seasonality effects, and end consumer purchasing actions, all stemming therefrom, is beyond our control and remains highly uncertain and cannot be predicted at this time. All monetary amounts, other than share and per share amounts, are stated in thousands.
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New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS Recently issued accounting pronouncements In December 2023, the Financial Account Standards Board (FASB), issued Accounting Standards Update (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, on a retrospective basis, with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on its financial statements and disclosures. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU covers a variety of codification topics, and the effective date for each amendment will be the date on which the SEC‘s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company is currently evaluating the potential impact of this guidance on its financial statements and disclosures. Recently adopted accounting pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 is intended to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. Subsequently in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848)—Deferral of the Sunset Date of Topic 848, which delayed the effective date to December 31, 2024. The Company adopted Topic 848 in the fourth fiscal quarter of 2023. The adoption of this pronouncement did not have a material impact on its financial statements and disclosures.
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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 December 29, 2023, the right to returns asset was $1,108 and the accrued returns liability was $2,723. At December 30, 2022, the right to returns asset was $834 and the accrued returns liability was $2,317. 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. The Company generally 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. Nonetheless, the revenue recognition policies are similar among all the various products sold by the Company.
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EARNINGS PER SHARE (“EPS”) (Tables) |
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Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends Declared | Dividends per share for the three month periods ended December 29, 2023 and December 30, 2022 were as follows:
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STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS (Tables) |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Non-Vested Stock Activity | A summary of non-vested stock activity for the three months ended December 29, 2023 related to the Company’s stock ownership plans is as follows:
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Schedule of RSU Activity | A summary of RSU activity for the three months ended December 29, 2023 follows:
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Expense | The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three months ended December 29, 2023 and December 30, 2022 were as follows:
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Schedule of Right of Use Assets and Lease Liabilities | Supplemental balance sheet, cash flow, and other information related to operating leases was as follows:
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Schedule of Maturities of Operating Lease Liabilities | Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at December 29, 2023 were as follows:
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INCOME TAXES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Before Income Taxes, Income Tax Expense and Effective Income Tax Rate | For the three months ended December 29, 2023 and December 30, 2022, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:
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Schedule of Tax Jurisdictions of Entities with Valuation Allowances | The significant tax jurisdictions that have a valuation allowance for the periods ended December 29, 2023 and December 30, 2022 were:
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INVENTORIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories at the end of the respective periods consisted of the following:
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GOODWILL (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in goodwill during the three months ended December 29, 2023 and December 30, 2022 were as follows:
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WARRANTIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Warranty Activity | The following table summarizes the Company’s warranty activity for the three months ended December 29, 2023 and December 30, 2022.
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FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets Measured at Fair Value | The following table summarizes the Company’s financial assets measured at fair value as of December 29, 2023:
The following table summarizes the Company’s financial assets measured at fair value as of September 29, 2023:
The following table summarizes the Company’s financial assets measured at fair value as of December 30, 2022:
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Schedule of Effect of Changes in the Fair Value of Financial Instruments | The effect of changes in the fair value of financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three month periods ended December 29, 2023 and December 30, 2022 was:
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CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Marketable Securities | The following table summarizes the Company’s marketable securities measured at fair value as of December 29, 2023:
The following table summarizes the Company’s marketable securities measured at fair value as of September 29, 2023:
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SEGMENTS OF BUSINESS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operations by Business Unit | A summary of the Company’s operations by business segment is presented below:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in AOCI by Component | The changes in Accumulated Other Comprehensive Income (“AOCI”) by component, net of tax, for the three months ended December 29, 2023 were as follows:
The changes in AOCI by component, net of tax, for the three months ended December 30, 2022 were as follows:
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Schedule of Reclassifications Out of AOCI | The reclassifications out of AOCI for the three months ended December 29, 2023 and December 30, 2022 were as follows:
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ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands |
Dec. 29, 2023 |
Sep. 29, 2023 |
Dec. 30, 2022 |
---|---|---|---|
Receivables [Abstract] | |||
Allowances for doubtful accounts receivable | $ 1,108 | $ 907 | $ 1,151 |
STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS - Schedule of Non-Vested Stock Activity (Details) - Non-Vested Stock |
3 Months Ended |
---|---|
Dec. 29, 2023
$ / shares
shares
| |
Number of RSUs | |
Beginning balance (in shares) | shares | 61,242 |
Grants (in shares) | shares | 16,836 |
Vested (in shares) | shares | (7,478) |
Ending balance (in shares) | shares | 70,600 |
Weighted Average Grant Price | |
Beginning balance (in USD per share) | $ / shares | $ 66.48 |
Grants (in USD per share) | $ / shares | 54.21 |
Vested (in USD per share) | $ / shares | 63.88 |
Ending balance (in USD per share) | $ / shares | $ 63.83 |
STOCK-BASED COMPENSATION AND STOCK OWNERSHIP PLANS - Schedule of RSU Activity (Details) - Restricted Stock Units (RSUs) |
3 Months Ended |
---|---|
Dec. 29, 2023
$ / shares
shares
| |
Number of RSUs | |
Beginning balance (in shares) | shares | 68,244 |
RSUs granted (in shares) | shares | 38,054 |
RSUs vested (in shares) | shares | (17,516) |
Ending balance (in shares) | shares | 88,782 |
Weighted Average Grant Price | |
Beginning balance (in USD per share) | $ / shares | $ 76.38 |
RSUs granted (in USD per share) | $ / shares | 54.20 |
RSUs vested (in USD per share) | $ / shares | 88.49 |
Ending balance (in USD per share) | $ / shares | $ 64.48 |
LEASES - Narrative (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 29, 2023
USD ($)
contract
|
Dec. 30, 2022
USD ($)
|
|
Lessee, Lease, Description [Line Items] | ||
Number of contracts | contract | 200 | |
Affiliated Entity | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, cost | $ | $ 314 | $ 314 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 16 years |
LEASES - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 29, 2023 |
Dec. 30, 2022 |
|
Lease Cost | ||
Operating lease costs | $ 2,465 | $ 2,430 |
Short-term lease costs | 627 | 529 |
Variable lease costs | 43 | 41 |
Total lease cost | $ 3,135 | $ 3,000 |
LEASES - Schedule of Right of Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 29, 2023 |
Dec. 30, 2022 |
Sep. 29, 2023 |
|
Operating leases: | |||
Operating lease ROU assets | $ 51,852 | $ 55,647 | $ 50,746 |
Current operating lease liabilities | 7,284 | 7,510 | 7,009 |
Non-current operating lease liabilities | 46,239 | 49,519 | $ 45,335 |
Total operating lease liabilities | $ 53,523 | $ 57,029 | |
Weighted average remaining lease term (in years) | 11 years 6 months | 12 years 2 months 15 days | |
Weighted average discount rate | 3.19% | 3.15% | |
Cash paid for amounts included in the measurement of lease liabilities | $ 2,268 | $ 2,149 | |
ROU assets obtained in exchange for lease liabilities | $ 2,061 | $ 1,941 |
LEASES - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands |
Dec. 29, 2023 |
Dec. 30, 2022 |
---|---|---|
Finance Leases, After Adoption of 842: | ||
Remainder of 2024 | $ 6,778 | |
2025 | 8,518 | |
2026 | 7,286 | |
2027 | 5,789 | |
2028 | 3,823 | |
Thereafter | 32,580 | |
Total undiscounted lease payments | 64,774 | |
Less: Imputed interest | (11,251) | |
Total net lease liability | 53,523 | $ 57,029 |
Affiliated Entity | ||
Finance Leases, After Adoption of 842: | ||
Remainder of 2024 | 957 | |
2025 | 1,308 | |
2026 | 1,348 | |
2027 | 226 | |
2028 | 0 | |
Thereafter | 0 | |
Total undiscounted lease payments | 3,839 | |
Less: Imputed interest | (87) | |
Total net lease liability | $ 3,752 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 29, 2023 |
Dec. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Profit before income taxes | $ 5,899 | $ 8,166 |
Income tax expense | $ 1,944 | $ 2,287 |
Effective income tax rate | 33.00% | 28.00% |
INVENTORIES (Details) - USD ($) $ in Thousands |
Dec. 29, 2023 |
Sep. 29, 2023 |
Dec. 30, 2022 |
---|---|---|---|
Inventory Disclosure [Abstract] | |||
Raw materials | $ 120,695 | $ 114,467 | $ 149,986 |
Work in process | 0 | 0 | 229 |
Finished goods | 146,626 | 147,007 | 101,310 |
Inventories | $ 267,321 | $ 261,474 | $ 251,525 |
GOODWILL - (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 29, 2023 |
Dec. 30, 2022 |
|
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 11,172 | $ 11,160 |
Amount attributable to movements in foreign currency rates | 17 | 7 |
Balance at end of period | $ 11,189 | $ 11,167 |
WARRANTIES (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 29, 2023 |
Dec. 30, 2022 |
|
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 11,741 | $ 9,639 |
Expense accruals for warranties issued during the period | 1,243 | 1,852 |
Less current period warranty claims paid | 1,998 | 1,793 |
Balance at end of period | $ 10,986 | $ 9,698 |
INDEBTEDNESS (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Dec. 29, 2023 |
Sep. 29, 2023 |
Dec. 30, 2022 |
|
Debt Instrument [Line Items] | |||
Debt outstanding | $ 0 | $ 0 | $ 0 |
Financial Standby Letter of Credit | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | 67,000 | $ 173,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 125,000,000 | ||
Interest rate (in percent) | 6.50% | 5.40% | |
Revolving Credit Facility | Minimum | LIBOR | |||
Debt Instrument [Line Items] | |||
Margin percentage | 1.00% | ||
Revolving Credit Facility | Maximum | LIBOR | |||
Debt Instrument [Line Items] | |||
Margin percentage | 1.75% | ||
Unsecured Revolving Credit Facilities At Foreign Subsidiaries | |||
Debt Instrument [Line Items] | |||
Unsecured revolving credit facilities | $ 0 | $ 0 | |
Revolvers Borrowing Capacity Standard | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 75,000,000 | ||
Accordion feature | $ 50,000,000 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - contract |
3 Months Ended | |
---|---|---|
Dec. 29, 2023 |
Dec. 30, 2022 |
|
Derivative [Line Items] | ||
Number of derivative instruments held | 0 | 0 |
Geographic Concentration Risk | Revenue Benchmark | Euro | ||
Derivative [Line Items] | ||
Percent of revenues in foreign currency | 6.00% | |
Geographic Concentration Risk | Revenue Benchmark | Canadian Dollars | ||
Derivative [Line Items] | ||
Percent of revenues in foreign currency | 5.00% | |
Geographic Concentration Risk | Revenue Benchmark | Hong Kong, Dollars | ||
Derivative [Line Items] | ||
Percent of revenues in foreign currency | 2.00% | |
Geographic Concentration Risk | Revenue Benchmark | Product | ||
Derivative [Line Items] | ||
Percent of revenues in foreign currency | 13.00% |
FAIR VALUE MEASUREMENTS - Schedule of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands |
Dec. 29, 2023 |
Sep. 29, 2023 |
Dec. 30, 2022 |
---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | $ 25,818 | $ 24,562 | $ 22,684 |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | 25,818 | 24,562 | 22,684 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | 0 | 0 | 0 |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Rabbi trust assets | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Schedule of Effect of Changes in the Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 29, 2023 |
Dec. 30, 2022 |
|
Rabbi trust assets | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Other income, net | $ 2,672 | $ 1,383 |
FAIR VALUE MEASUREMENTS - Narrative (Details) - Nonrecurring - USD ($) |
Dec. 29, 2023 |
Dec. 30, 2022 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 0 |
Liabilities, fair value disclosure | $ 0 | $ 0 |
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands |
Dec. 29, 2023 |
Sep. 29, 2023 |
---|---|---|
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 33,788 | $ 40,870 |
Fair Value | 33,762 | 40,707 |
Gross unrealized gains | 6 | 0 |
Gross unrealized losses | 32 | 163 |
Fixed rate US Government Bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 22,365 | 29,749 |
Fair Value | 22,371 | 29,686 |
Gross unrealized gains | 6 | 0 |
Gross unrealized losses | 0 | 63 |
Fixed rate Canadian Government Bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 11,423 | 11,121 |
Fair Value | 11,391 | 11,021 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | $ 32 | $ 100 |
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES - Narrative (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Dec. 29, 2023 |
Dec. 30, 2022 |
Sep. 29, 2023 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale | $ 7,500 | $ 0 | |
Proceeds from sale of debt securities | 0 | 0 | |
Payments to acquire debt securities | 0 | 0 | |
Unrealized gain on available-for-sale securities, net of tax | 0 | 0 | |
Short term investments | 29,094,000 | 0 | $ 26,764,000 |
Investments | $ 4,668,000 | $ 0 | $ 13,943,000 |
REVENUE (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 29, 2023 |
Sep. 29, 2023 |
Dec. 30, 2022 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue, financing component | one year or less | ||
Accrued customer programs | $ 3,934 | $ 3,774 | $ 3,943 |
Accrued Discounts And Returns | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract with customer, asset | 1,108 | 834 | |
Accrued customer programs | $ 2,723 | $ 2,317 |
SEGMENTS OF BUSINESS - Narrative (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Dec. 29, 2023 |
Sep. 29, 2023 |
Dec. 30, 2022 |
|
Segment Reporting Information [Line Items] | |||
Net sales | $ 138,644,000 | $ 178,337,000 | |
Gain on sale of assets | 1,917,000 | (71,000) | |
Outdoor Equipment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Wind down expenses incurred | $ 4,800 | ||
Fishing | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 110,361,000 | 137,821,000 | |
Gain on sale of assets | 1,900 | ||
Two Customers | Revenue from Contract with Customer, Segment Benchmark | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 54,147,000 | $ 50,062,000 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 29, 2023 |
Dec. 30, 2022 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of loss | $ 4,693 | $ 1,904 |
Tax effects | (1,944) | (2,287) |
Total reclassifications for the period | 3,955 | 5,879 |
Unamortized Loss on Defined Benefit Pension Plans | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of loss | 10 | 11 |
Tax effects | (3) | (3) |
Total reclassifications for the period | $ 7 | $ 8 |
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