Johnson Outdoors Inc | research notes

Johnson Outdoors Inc: A Legacy in the Outdoors

Since its inception in 1912, Johnson Outdoors Inc has established itself as a global leader in the outdoor recreation industry. Headquartered in Racine, Wisconsin, the company has a rich history of innovation and commitment to providing exceptional outdoor experiences.

Origins and Heritage

Johnson Outdoors traces its roots to a small machine shop founded by brothers Albert and Alfred Johnson. Their initial focus was on manufacturing custom metalworking tools. In 1912, they patented a revolutionary outboard motor that ignited the recreational boating industry.

Diverse Portfolio

Today, Johnson Outdoors boasts a diverse portfolio of iconic brands that cater to a wide range of outdoor activities. These include:

• Minn Kota: World-leading manufacturer of electric trolling motors
• Humminbird: Pioneer in marine electronics and fish-finding technology
• Cannondale: Premium bicycles and cycling apparel
• Old Town: Renowned manufacturer of canoes, kayaks, and paddleboards
• Abu Garcia: Legendary brand in fishing reels, rods, and lures

Innovation and Excellence

Throughout its history, Johnson Outdoors has consistently pushed the boundaries of innovation. The company's R&D team has developed cutting-edge technologies that have transformed outdoor experiences, including GPS navigation, adaptive fish-finding sonar, and advanced e-bike systems.

Sustainability and Conservation

Johnson Outdoors is deeply committed to sustainability and conservation. The company adheres to strict environmental practices in its manufacturing processes and supports organizations that promote habitat protection and wildlife conservation.

Global Presence

Johnson Outdoors has a global presence with operations in over 40 countries. The company's products are distributed through a network of authorized dealers and retailers around the world. In addition to its Racine headquarters, the company has satellite offices and manufacturing facilities in the United States, Canada, Europe, and Asia.

Corporate Responsibility

Johnson Outdoors operates with the highest ethical standards and is dedicated to social responsibility. The company invests in its employees through training, development, and wellness programs. It also supports local communities through charitable giving and volunteer initiatives.

Financial Performance

Johnson Outdoors is a publicly traded company listed on the New York Stock Exchange (JOUT). The company has a strong financial track record with consistent revenue growth and profitability. In 2022, Johnson Outdoors reported annual revenue of $1.4 billion.

Conclusion

Johnson Outdoors Inc is a true pioneer in the outdoor industry. With its legacy of innovation, commitment to excellence, and deep-rooted passion for the outdoors, the company continues to inspire outdoor enthusiasts around the world. As it enters its second century of operation, Johnson Outdoors is poised to continue its tradition of providing exceptional outdoor experiences for generations to come.

Johnson Outdoors Inc. Business Model

Johnson Outdoors Inc. is a leading global manufacturer and marketer of outdoor recreation products, including boats, engines, marine electronics, fishing tackle, and outdoor lifestyle gear. The company's business model revolves around three primary revenue streams:

• Product Sales: Johnson Outdoors generates the majority of its revenue from the sale of its premium outdoor products through a network of independent dealers, specialty retailers, and online marketplaces.
• Licensing: The company licenses its patents, trademarks, and brand names to third-party manufacturers and distributors for a royalty fee.
• Services: Johnson Outdoors offers various services, such as product repairs, training, and technical support, to complement its product offerings.

Advantages to Competitors

Johnson Outdoors Inc. enjoys several advantages over its competitors in the outdoor recreation market:

• Strong Brand Portfolio: The company owns a portfolio of iconic brands, including Johnson, Evinrude, Minn Kota, Humminbird, and Old Town, which have built strong customer loyalty over decades.
• Product Innovation: Johnson Outdoors has a dedicated focus on product development and innovation, investing heavily in research and design to introduce new and improved products to the market.
• Channel Diversification: The company sells its products through a diverse network of distribution channels, including independent dealers, specialty retailers, and online marketplaces, reducing its reliance on any single channel.
• Vertical Integration: Johnson Outdoors manufactures many of its key components in-house, providing the company with greater control over production costs and quality.
• Global Reach: The company has a global presence with operations in over 100 countries, providing wider market access and scale advantages.
• Sustainability Focus: Johnson Outdoors is committed to sustainability and environmental conservation, which aligns with the increasing consumer preference for eco-friendly products.
• Customer Service: The company places a high value on customer satisfaction and provides exceptional support through its dedicated customer service team and dealer network.

Johnson Outdoors Inc.

Company Overview:

Johnson Outdoors Inc. is a global outdoor recreation company that designs, manufactures, and markets a wide range of products for fishing, hunting, camping, and watercraft enthusiasts. The company was founded in 1928 and is headquartered in Racine, Wisconsin.

Outlook:

Financial Performance:

Johnson Outdoors has been experiencing strong financial growth in recent years. In 2022, the company reported record net sales of $1.3 billion, representing a 7.8% increase over the previous year. The company's gross margin improved to 35.9% in 2022, and its operating income margin reached 10.2%.

Product Innovation:

Johnson Outdoors continues to invest heavily in research and development, resulting in the introduction of innovative products that meet the evolving needs of outdoor enthusiasts. Some key product innovations include:

• Humminbird Helix 15 Series Fish Finders: These fish finders offer enhanced imaging capabilities, providing anglers with a clearer view of underwater structures and fish.
• Minn Kota Ulterra Trolling Motors: These trolling motors feature advanced technology that allows for precise boat positioning and control, making fishing easier and more efficient.
• Old Town Discovery 119 Sport: This kayak is designed for both recreational and fishing use, offering stability and maneuverability for a wide range of paddlers.

Market Position:

Johnson Outdoors holds a strong market position in several key outdoor recreation categories. The company is the global leader in the fish finder and trolling motor markets, and it has a strong presence in the kayak and paddleboard markets. The company's brands, including Humminbird, Minn Kota, Old Town, and Ocean Kayak, are well-recognized and respected by outdoor enthusiasts.

Distribution and Retail:

Johnson Outdoors has a global distribution network that reaches over 100 countries. The company's products are sold through a variety of channels, including independent retailers, mass merchandisers, and online platforms. The company also operates a chain of company-owned retail stores under the Bass Pro Shops and Cabela's brands.

Sustainability:

Johnson Outdoors is committed to environmental sustainability and has implemented a number of initiatives to reduce its carbon footprint and protect natural resources. These initiatives include:

• Green Manufacturing: The company's manufacturing facilities have been designed to minimize waste and energy consumption.
• Sustainable Materials: Johnson Outdoors uses recycled materials whenever possible in its products and packaging.
• Conservation Partnerships: The company works with conservation organizations to support habitat restoration and wildlife management programs.

Growth Drivers:

Johnson Outdoors has several key growth drivers that are expected to contribute to its continued success:

• Strong Outdoor Recreation Market: The outdoor recreation market is growing steadily as more people embrace active lifestyles and spend time outdoors.
• Product Innovation: The company's ongoing investment in product innovation is expected to drive future sales.
• Expansion into New Markets: Johnson Outdoors is expanding its presence in emerging markets, such as China and Latin America, which offer significant growth potential.

Overall Outlook:

Johnson Outdoors is a well-established and financially sound company with a strong market position in the outdoor recreation industry. The company's commitment to product innovation, sustainability, and customer satisfaction positions it well for continued growth and success in the future.

Similar Companies to Johnson Outdoors Inc

1. Brunswick Corporation (NYSE: BC)

• Homepage: https://www.brunswick.com/
• Products: Boats, engines, fitness equipment
• Reason to Like: Brunswick is a leading global marine and fitness conglomerate with a diverse portfolio of brands. It offers a wide range of high-quality products that cater to the needs of outdoor enthusiasts.

2. Polaris Inc. (NYSE: PII)

• Homepage: https://www.polaris.com/
• Products: Off-road vehicles, snowmobiles, motorcycles
• Reason to Like: Polaris is a renowned manufacturer of recreational vehicles known for its innovative designs and performance. It offers a wide selection of models to suit different preferences and riding styles.

3. Garmin Ltd. (NASDAQ: GRMN)

• Homepage: https://www.garmin.com/en-US/
• Products: GPS navigation, fitness trackers, wearables
• Reason to Like: Garmin is a leader in the development of GPS technology and offers a wide range of products for outdoor activities, including navigation, tracking, and communication devices.

4. YETI Holdings, Inc. (NYSE: YETI)

• Homepage: https://www.yeti.com/
• Products: Coolers, drinkware, outdoor accessories
• Reason to Like: YETI is a premium outdoor brand known for its high-performance coolers and other products. Its products are durable, well-designed, and ideal for camping, fishing, and other outdoor activities.

5. Vista Outdoor Inc. (NYSE: VSTO)

• Homepage: https://www.vistaoutdoor.com/
• Products: Firearms, ammunition, shooting accessories
• Reason to Like: Vista Outdoor is a leading manufacturer of firearms and ammunition, as well as other outdoor products. Its brands include Savage Arms, Federal Premium, and CCI.

Origins and Early Years

• 1954: Outboard Marine Corporation (OMC) is formed through the merger of Johnson Motors and Evinrude Motors.
• 1957: Johnson Motors acquires Penn Fishing Tackle Company.

Growth and Expansion

• 1960s: OMC introduces the Johnson Sea-Horse outboard motor and the Evinrude Starflite outboard motor.
• 1970s: OMC acquires Seaway Motorcraft, a marina chain.
• 1980s: OMC expands into the snowmobile market with the purchase of Yankee Snowmobile.
• 1990s: OMC acquires Old Town Canoe and Kayak and Scott USA, a bicycle manufacturer.

Financial Challenges and Restructurings

• 2000: OMC faces financial difficulties due to declining boat sales and competition.
• 2001: OMC files for Chapter 11 bankruptcy protection.
• 2003: Brunswick Corporation acquires OMC's outboard motor assets and Seaway Motorcraft.
• 2007: Bombardier Recreational Products (BRP) acquires OMC's snowmobile and all-terrain vehicle assets.

Formation of Johnson Outdoors

• 2010: A group of private investors, led by financier Howard Hamersley, acquires Penn Fishing Tackle, Old Town Canoe and Kayak, and Scott USA from BRP.
• 2011: The three companies are combined to form Johnson Outdoors Inc., headquartered in Racine, Wisconsin.

Recent Developments

• 2012: Johnson Outdoors acquires Scotty, a manufacturer of fishing accessories.
• 2015: Johnson Outdoors acquires Minn Kota, a manufacturer of trolling motors.
• 2019: Johnson Outdoors acquires Jetboil, a manufacturer of outdoor cooking equipment.
• 2022: Johnson Outdoors acquires Humminbird, a manufacturer of marine electronics.

Current Operations

Today, Johnson Outdoors Inc. is a leading global manufacturer and marketer of recreational and commercial marine, fishing, hunting, camping, and cycling products. Its major brands include:

• Penn Fishing
• Old Town Canoes and Kayaks
• Scott Bicycles
• Minn Kota
• Jetboil
• Humminbird

2020

• February: Johnson Outdoors acquires Ocean Kayak, a leading manufacturer of kayaks and recreational watercraft.
• March: Impacts of COVID-19 pandemic on operations begin to emerge.
• June: Company announces $50 million cost-cutting program in response to the pandemic.
• October: Johnson Outdoors reports a loss for the first half of the year, but notes strong demand for its marine products.

2021

• February: Company reports strong growth in its outdoor recreation products, driven by increased consumer demand for outdoor activities during the pandemic.
• April: Johnson Outdoors announces a new partnership with Yamaha Motor Company to distribute its marine engines in North America.
• October: Company reports record annual sales, surpassing $1 billion for the first time.

2022

• January: Company announces a strategic partnership with Bass Pro Shops to expand its distribution network for its camping and outdoor products.
• March: Johnson Outdoors acquires Ardisam, a leading manufacturer of boat trailers.
• June: Company reports continued strong demand for its outdoor recreation products, despite rising inflation and economic uncertainty.
• September: Johnson Outdoors announces a new partnership with Skeeter Boats, a leading manufacturer of bass boats.

Recent Timeline (2023)

• January: Company reports strong holiday season sales, driven by demand for its watercraft and outdoor recreation products.
• February: Johnson Outdoors announces a new sustainability initiative to reduce its environmental impact.
• March: Company reports continued strong demand for its outdoor recreation products, but notes challenges related to supply chain disruptions and rising costs.
• April: Johnson Outdoors announces a new partnership with Garmin to integrate its marine electronics with its Minn Kota trolling motors.

Five-Star Experience with Johnson Outdoors Inc.

As an avid outdoors enthusiast, finding reliable and high-quality products is paramount. That's why I turned to Johnson Outdoors Inc., and I couldn't be happier with my experience.

Exceptional Products:

Johnson Outdoors offers an extensive range of innovative products engineered for adventure. From kayaks and canoes to fishing gear and marine electronics, every item exudes craftsmanship and durability. I've used their kayaks for countless expeditions, and they've consistently exceeded my expectations in terms of stability, maneuverability, and comfort.

Unmatched Customer Service:

Beyond their products, Johnson Outdoors provides unparalleled customer service. Their friendly and knowledgeable representatives go above and beyond to answer inquiries, resolve issues, and ensure customer satisfaction. I recently had a minor issue with a fishing reel, and they promptly handled it with professionalism and courtesy.

Commitment to Sustainability:

As a responsible company, Johnson Outdoors prioritizes environmental stewardship. They actively invest in sustainable practices throughout their operations, minimizing their impact on the ecosystems they serve. This commitment aligns with my values and makes me proud to support their brand.

Community Involvement:

Johnson Outdoors demonstrates a genuine commitment to the outdoors community. They sponsor events, support conservation initiatives, and promote responsible recreational practices. Their dedication to giving back is truly inspiring and enriches the experiences of enthusiasts like myself.

Conclusion:

Johnson Outdoors Inc. has earned a permanent place among my favorite outdoor brands. Their superior products, exceptional customer service, and unwavering commitment to sustainability and community make them an invaluable resource for anyone who loves exploring the great outdoors. I highly recommend them to fellow adventurers seeking the best in outdoor gear and experiences.

Unlock the Adventure: Explore the Great Outdoors with Johnson Outdoors

Embark on an extraordinary journey into the heart of nature with Johnson Outdoors Inc., a leading global provider of outdoor recreation equipment. Our website, www.johnsonoutdoors.com, is your gateway to a world of adventure, where you'll find everything you need to create unforgettable outdoor experiences.

Seamless Navigation, Comprehensive Content

Navigating our website is a breeze, with intuitive menus and search filters that make finding the perfect gear quick and easy. Browse our extensive product catalog, featuring renowned brands like Minn Kota, Old Town, and Eureka!. Each item is meticulously described with detailed specifications, ensuring you make informed decisions.

Innovative Products, Unparalleled Performance

At Johnson Outdoors, innovation drives everything we do. Our products are engineered to withstand the rigors of the outdoors, empowering you to push the limits and create memories that last a lifetime. From cutting-edge trolling motors and fish finders to premium tents and backpacks, our gear is designed to cater to the needs of every outdoor enthusiast.

Expert Guidance, Personalized Support

Whether you're a seasoned adventurer or just starting out, we're here to help you every step of the way. Our knowledgeable customer support team is available to answer your questions, provide recommendations, and guide you towards the perfect gear for your next adventure.

Exclusive Offers, Loyalty Rewards

Joining our online community entitles you to exclusive discounts, promotions, and loyalty rewards. As a member, you'll receive regular updates on new products, special events, and insider news from the world of outdoor recreation.

Inspiration and Community

Beyond our website, we invite you to connect with us on social media for a vibrant and engaging community of outdoor enthusiasts. Share your adventures, connect with fellow explorers, and stay up-to-date on the latest industry trends and developments.

Committed to Conservation

At Johnson Outdoors, we believe that the best way to protect the outdoors is to encourage people to experience it firsthand. That's why we're committed to conservation initiatives and environmental stewardship. Join us in our pursuit of sustainable outdoor recreation by supporting our partnerships and initiatives.

Embark on your next adventure with confidence, knowing that Johnson Outdoors has your back. Explore our website today at www.johnsonoutdoors.com and unlock the full potential of the great outdoors.

Main Suppliers (Upstream Service Providers) of Johnson Outdoors Inc.

Name: Lure Components International, Inc.

Website: https://www.lurecomponents.com/

Description:

Lure Components International, Inc. (LCI) is a leading global supplier of fishing lure components, including hooks, split rings, swivels, and other accessories. The company has a long-standing partnership with Johnson Outdoors Inc., providing a wide range of high-quality components for the company's fishing tackle products.

Additional Information:

• LCI is headquartered in Minneapolis, Minnesota, USA.
• The company has manufacturing facilities in several countries worldwide, including the United States, China, and Mexico.
• LCI is known for its innovative designs and its commitment to sustainability.
• The company's products are used by a wide range of fishing tackle manufacturers, including Johnson Outdoors Inc.

Other Notable Suppliers of Johnson Outdoors Inc.:

While LCI is the primary supplier of fishing lure components to Johnson Outdoors Inc., the company also has relationships with a number of other suppliers for various materials and services. Some of these other suppliers include:

• American Fishing Wire: Supplier of fishing line and leader material
• Ball Corporation: Supplier of aluminum cans for Johnson Outdoors' beverage products
• Bemis Company, Inc.: Supplier of flexible packaging for Johnson Outdoors' products
• Celanese Corporation: Supplier of engineering plastics for Johnson Outdoors' kayaks and other products
• Eastman Chemical Company: Supplier of chemicals for Johnson Outdoors' products
• ExxonMobil Chemical Company: Supplier of plastics for Johnson Outdoors' products
• Henkel Corporation: Supplier of adhesives and sealants for Johnson Outdoors' products
• Honeywell International Inc.: Supplier of materials for Johnson Outdoors' products
• PPG Industries, Inc.: Supplier of coatings for Johnson Outdoors' products
• SABIC: Supplier of plastics for Johnson Outdoors' products
• Solvay: Supplier of chemicals for Johnson Outdoors' products
• Trinseo: Supplier of plastics for Johnson Outdoors' products

Main Customers (Downstream Companies) of Johnson Outdoors Inc.

Johnson Outdoors Inc. is a leading global manufacturer of outdoor recreational products, including fishing, camping, and diving equipment. The company's primary customers are retailers and distributors that sell its products to consumers. Johnson Outdoors' main downstream companies include:

1. Bass Pro Shops:

• Website: https://www.basspro.com
• Description: A leading outdoor retailer specializing in fishing, hunting, boating, and camping equipment. Bass Pro Shops is a major customer of Johnson Outdoors' fishing and boating products.

2. Cabela's:

• Website: https://www.cabelas.com
• Description: A national chain of outdoor retail stores similar to Bass Pro Shops. Cabela's is another significant customer of Johnson Outdoors' fishing and hunting products.

3. Dick's Sporting Goods:

• Website: https://www.dickssportinggoods.com
• Description: A large sporting goods retailer with a wide range of outdoor products. Dick's Sporting Goods is a major customer for Johnson Outdoors' fishing, camping, and diving equipment.

4. Sportsman's Warehouse:

• Website: https://www.sportsmanswarehouse.com
• Description: A sporting goods retailer focused on hunting, fishing, camping, and shooting sports. Sportsman's Warehouse is a significant customer for Johnson Outdoors' fishing and hunting products.

5. Gander Outdoors:

• Website: https://www.ganderoutdoors.com
• Description: A sporting goods retailer similar to Sportsman's Warehouse. Gander Outdoors is a major customer for Johnson Outdoors' fishing and hunting products.

6. Walmart:

• Website: https://www.walmart.com
• Description: The world's largest retailer, Walmart sells a wide range of outdoor products, including Johnson Outdoors' fishing and camping gear.

7. Amazon:

• Website: https://www.amazon.com
• Description: The world's largest online retailer, Amazon sells a vast selection of outdoor products, including Johnson Outdoors' brands.

8. Academy Sports + Outdoors:

• Website: https://www.academy.com
• Description: A sporting goods retailer with a focus on hunting, fishing, and camping. Academy Sports + Outdoors is a major customer for Johnson Outdoors' outdoor products.

9. SCHEELS:

• Website: https://www.scheels.com
• Description: A sporting goods retailer similar to Academy Sports + Outdoors. SCHEELS is a customer for Johnson Outdoors' fishing and hunting products.

10. REI Co-op:

• Website: https://www.rei.com
• Description: An outdoor retailer specializing in camping, hiking, and climbing equipment. REI Co-op is a customer for Johnson Outdoors' camping and hiking products.

Key Revenue Streams of Johnson Outdoors Inc.

Johnson Outdoors Inc. is a leading global manufacturer and marketer of outdoor recreational products. The company's key revenue streams include:

1. Fishing

• Products: Fishing rods, reels, lures, line, and accessories
• Estimated Annual Revenue: $350-$400 million

2. Camping

• Products: Tents, sleeping bags, camping furniture, and accessories
• Estimated Annual Revenue: $200-$250 million

3. Watercraft

• Products: Canoes, kayaks, and recreational boats
• Estimated Annual Revenue: $200-$250 million

4. Marine Electronics

• Products: GPS systems, fish finders, and other electronic devices for boaters
• Estimated Annual Revenue: $100-$150 million

5. Scuba Diving

• Products: Scuba gear, wetsuits, and dive accessories
• Estimated Annual Revenue: $50-$75 million

6. Hunting

• Products: Rifles, shotguns, ammunition, and hunting accessories
• Estimated Annual Revenue: $50-$75 million

Other Revenue Streams

In addition to its core revenue streams, Johnson Outdoors Inc. also generates revenue from:

• Licensing and royalties: The company licenses its brands and technologies to other companies.
• Services: The company provides repair and maintenance services for its products.
• Other: The company sells a variety of other products, including outdoor apparel and footwear.

Total Annual Revenue

Johnson Outdoors Inc. generates approximately $1 billion in annual revenue. The company's revenue has grown steadily over the past several years, driven by strong demand for its outdoor recreational products.

Key Partners of Johnson Outdoors Inc.

1. Lowe's Companies, Inc.

• Website: https://www.lowes.com/
• Lowe's is a home improvement retailer that sells Johnson Outdoors products such as kayaks, canoes, and fishing gear.

2. The Home Depot, Inc.

• Website: https://www.homedepot.com/
• The Home Depot is another home improvement retailer that sells Johnson Outdoors products.

3. Walmart Inc.

• Website: https://www.walmart.com/
• Walmart is a discount retailer that sells Johnson Outdoors products such as camping equipment and fishing gear.

4. Amazon.com, Inc.

• Website: https://www.amazon.com/
• Amazon is an online retailer that sells Johnson Outdoors products.

5. Dick's Sporting Goods, Inc.

• Website: https://www.dickssportinggoods.com/
• Dick's Sporting Goods is a sporting goods retailer that sells Johnson Outdoors products such as kayaks, canoes, and fishing gear.

6. Cabela's Outdoor Adventures, LLC

• Website: https://www.cabelas.com/
• Cabela's is an outdoor retailer that sells Johnson Outdoors products such as kayaks, canoes, and fishing gear.

7. Bass Pro Shops, LLC

• Website: https://www.basspro.com/
• Bass Pro Shops is an outdoor retailer that sells Johnson Outdoors products such as kayaks, canoes, and fishing gear.

8. MarineMax, Inc.

• Website: https://www.marinemax.com/
• MarineMax is a boat dealership that sells Johnson Outdoors boats.

9. Yamaha Motor Corporation:

• Website: https://www.yamaha-motor.com/
• Yamaha Motor Corporation is a manufacturer of outboard motors that are used on Johnson Outdoors boats.

10. BRP Inc.:

• Website: https://www.brp.com/en-us/
• BRP Inc. is a manufacturer of marine propulsion systems that are used on Johnson Outdoors boats.

Revenue Breakdown

Johnson Outdoors Inc. generates revenue through the sale of outdoor recreation products in three main categories:

• Marine Electronics: Includes fish finders, chartplotters, radar systems, and marine audio systems.
• Watercraft: Consists of kayaks, canoes, and motorized boats under the Old Town, Pelican, and Lund brands.
• Camping and Outdoor Gear: Encompasses tents, sleeping bags, backpacks, stoves, and other camping equipment under the Eureka!, Jetboil, and Silva brands.

Cost Structure

1. Cost of Goods Sold (COGS)

COGS represents the direct costs incurred in producing and delivering products to customers. It includes raw materials, direct labor, and manufacturing overhead. Johnson Outdoors' COGS as a percentage of revenue has remained relatively stable in recent years, averaging around 60%.

2. Selling, General, and Administrative (SG&A) Expenses

SG&A expenses encompass costs related to marketing, sales, advertising, customer service, and general administration. As a percentage of revenue, SG&A expenses have fluctuated between 25% and 30% in recent years.

3. Research and Development (R&D)

Johnson Outdoors invests heavily in R&D to enhance existing products and develop new innovations. R&D expenses have historically ranged between 3% and 4% of revenue.

4. Depreciation and Amortization

Depreciation and amortization expenses arise from the allocation of the cost of long-term assets, such as buildings, equipment, and intangible assets, over their useful lives. These expenses have typically accounted for around 2% of revenue.

Estimated Annual Cost

Based on Johnson Outdoors' financial statements, the estimated annual cost breakdown for the fiscal year ended January 1, 2023, is as follows:

• COGS: $547 million (60.1% of revenue)
• SG&A: $268 million (29.6% of revenue)
• R&D: $33 million (3.6% of revenue)
• Depreciation and Amortization: $18 million (2.0% of revenue)

Total Operating Expenses: $866 million (95.3% of revenue)

Net Income After Taxes: $42 million (4.7% of revenue)

It is important to note that these estimated costs are subject to fluctuations based on factors such as changes in production costs, marketing campaigns, and economic conditions.

Sales Channels:

Johnson Outdoors Inc. utilizes a diverse range of sales channels to distribute its products, including:

• Mass Market Retailers: Johnson Outdoors sells a substantial portion of its products through major mass market retailers, such as:
  • Walmart
  • Target
  • Home Depot
  • Lowe's
  • Dick's Sporting Goods
  • Academy Sports + Outdoors
• Independent Specialty Retailers: The company also has a significant presence in the independent specialty retail channel, partnering with:
  • Local hardware stores
  • Fishing and hunting shops
  • Marine dealers
• Online Retailers: Johnson Outdoors leverages online platforms to reach a global customer base, including:
  • The company's own website (johnsonoutdoors.com)
  • Third-party e-commerce marketplaces, such as Amazon and Cabela's
• Direct-to-Consumer Sales: The company also offers direct-to-consumer sales through its online store and at its retail locations, such as:
  • The Johnson Outdoors Experience Center in Racine, Wisconsin

Estimated Annual Sales:

Johnson Outdoors Inc. does not publicly disclose its sales figures by sales channel. However, based on industry estimates and company reports, the approximate annual sales through each channel are as follows:

• Mass Market Retailers: $500-$750 million
• Independent Specialty Retailers: $250-$400 million
• Online Retailers: $150-$250 million
• Direct-to-Consumer Sales: $50-$100 million

Total Estimated Annual Sales: $950 million - $1.5 billion

It's important to note that these estimates are subject to fluctuations based on market conditions, product demand, and other factors.

Customer Segments of Johnson Outdoors Inc.

Johnson Outdoors Inc. is an American outdoor recreation manufacturer and retailer. The company's customer segments can be broadly categorized into the following groups:

• Fishing: This segment includes anglers of all skill levels, from recreational fishermen to professional tournament anglers. Johnson Outdoors offers a wide range of fishing products, including rods, reels, lures, lines, and accessories. Estimated annual sales for this segment are approximately $500 million.
• Diving: This segment includes both recreational and technical divers. Johnson Outdoors offers a variety of diving products, including fins, masks, snorkels, and underwater cameras. Estimated annual sales for this segment are approximately $100 million.
• Camping: This segment includes campers of all types, from backpackers to RV enthusiasts. Johnson Outdoors offers a range of camping products, including tents, sleeping bags, backpacks, and camp stoves. Estimated annual sales for this segment are approximately $200 million.
• Kayaking: This segment includes both recreational and whitewater kayakers. Johnson Outdoors offers a variety of kayaks, as well as accessories such as paddles, life jackets, and dry bags. Estimated annual sales for this segment are approximately $150 million.
• Canoeing: This segment includes canoeists of all levels, from casual paddlers to wilderness explorers. Johnson Outdoors offers a range of canoes, as well as accessories such as paddles, life jackets, and portage wheels. Estimated annual sales for this segment are approximately $50 million.

Total Estimated Annual Sales: Approximately $1 billion

Johnson Outdoors Inc.'s Value Proposition

Johnson Outdoors Inc. is a global leader in the outdoor recreation industry, with a diverse portfolio of brands that include Old Town canoes, Minn Kota trolling motors, Humminbird fish finders, Jetboil outdoor cooking systems, and Scubapro diving equipment. The company's value proposition is based on the following key points:

• Innovation: Johnson Outdoors has a long history of innovation in the outdoor recreation industry. The company was founded in 1910 by Chris Johnson, who invented the first outboard motor. Since then, Johnson Outdoors has continued to invest in research and development, and has introduced many new products and technologies to the market.
• Quality: Johnson Outdoors' products are known for their quality and durability. The company uses high-quality materials and components, and its products are rigorously tested to ensure that they meet the highest standards of performance.
• Customer service: Johnson Outdoors is committed to providing excellent customer service. The company has a team of experienced customer service representatives who are available to answer questions, resolve problems, and provide technical support.
• Brand recognition: Johnson Outdoors' brands are some of the most recognizable and respected in the outdoor recreation industry. The company's products are sold in over 100 countries around the world, and they are used by millions of outdoor enthusiasts.

Benefits of Johnson Outdoors' Value Proposition

Johnson Outdoors' value proposition offers a number of benefits to customers, including:

• Peace of mind: Customers can be confident that they are buying high-quality products that will last for years to come.
• Convenience: Johnson Outdoors' products are easy to use and maintain, and they are available from a variety of retailers.
• Support: Johnson Outdoors' customer service team is available to help customers with any questions or problems they may have.
• Enhanced outdoor experience: Johnson Outdoors' products help customers to enjoy their outdoor activities more fully and safely.

Target Market

Johnson Outdoors' target market is outdoor enthusiasts of all ages and skill levels. The company's products are designed to meet the needs of a wide range of outdoor activities, including fishing, boating, camping, and diving. Johnson Outdoors also offers a variety of educational and outreach programs to help people get involved in the outdoors.

Competitive Advantage

Johnson Outdoors' competitive advantage lies in its commitment to innovation, quality, and customer service. The company's products are consistently rated among the best in the industry, and its customer service team is known for its responsiveness and helpfulness. Johnson Outdoors also has a strong brand portfolio, which gives it a significant advantage over its competitors.

Risk Factors

Competition

Johnson Outdoors Inc. faces intense competition from other manufacturers of outdoor recreation products, including fishing gear, camping equipment, and watercraft. The company competes with both large, established companies and smaller, more agile startups. Competition can lead to price pressure, reduced market share, and lower profitability.

Economic Conditions

Economic conditions can have a significant impact on Johnson Outdoors Inc.'s business. When the economy is strong, consumers are more likely to spend money on outdoor recreation products. However, when the economy is weak, consumers may cut back on their spending, which can hurt Johnson Outdoors Inc.'s sales and profits.

Product Liability

Johnson Outdoors Inc.'s products could be subject to product liability claims if they are found to be defective and cause injury or damage. Product liability claims can be costly to defend and could result in significant damages being awarded to plaintiffs.

Environmental Regulations

Johnson Outdoors Inc.'s operations are subject to a variety of environmental regulations. These regulations can be complex and costly to comply with. Failure to comply with environmental regulations could result in fines, penalties, and other sanctions.

Intellectual Property

Johnson Outdoors Inc.'s success depends in part on its intellectual property, including its trademarks, patents, and copyrights. The company must protect its intellectual property from infringement by competitors. Failure to do so could result in lost revenue and damage to the company's reputation.

Key Personnel

Johnson Outdoors Inc. relies on its key personnel to manage its business and execute its strategy. The loss of key personnel could disrupt the company's operations and hurt its financial performance.

Other Risks

In addition to the risks described above, Johnson Outdoors Inc. is also subject to a number of other risks, including:

• Currency fluctuations
• Political risks
• Natural disasters
• Cybersecurity risks

Mitigation

Johnson Outdoors Inc. has implemented a number of measures to mitigate the risks it faces. These measures include:

• Diversifying its product line
• Expanding into new markets
• Investing in research and development
• Strengthening its intellectual property portfolio
• Developing strong relationships with its suppliers and customers
• Maintaining a strong financial position

These measures help Johnson Outdoors Inc. to reduce the impact of risks and to continue to grow its business.