Johnson Outdoors Updates 1 Key Risk Factor

Global outdoor recreation equipment and technology provider Johnson Outdoors Inc. (JOUT) recently delivered a better-than-expected performance for the fourth quarter, driven by higher demand for fishing, camping, and watercraft recreation.

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Q4 revenue remained essentially flat at $166.3 million, but came in ahead of analysts’ expectations by $2 million. An increase in tariffs, inbound air freight costs, and higher costs of goods sold resulted in a lower gross margin for the company. Nevertheless, earnings per share at $0.68 beat consensus estimates by $0.03.

Management noted that the company is maintaining higher-than-normal inventory levels to satisfy product demand and expects near-term margins to be impacted by supply chain constraints.

With these developments in mind, let us take a look at the changes in JOUT’s key risk factors that investors should know.

Risk Factors

According to the TipRanks Risk Factors tool, JOUT’s top two risk categories are Finance & Corporate and Macro & Political, contributing 24% each to the total 25 risks identified. In its recent annual report, the company has added one key risk factor under the Finance & Corporate risk category.

JOUT acknowledged that its share price is volatile and investors may not be able to exit their positions in the company’s Class A common shares at or above their purchase price. (See Insiders’ Hot Stocks on TipRanks)

JOUT added that the broader market in general, and market for shares of companies in the outdoor leisure or recreational products markets has seen periods of higher volatility, which is often unrelated to the company’s operational performance. These broader fluctuations may negatively impact JOUT’s share price.

Compared to a sector average of 14%, JOUT’s Macro & Political risk factor is at 24%.

Wall Street’s Take

Sidoti analyst Anthony Lebiedzinski has reiterated a Buy rating on the stock but decreased the price target to $170 from $180 (upside potential 65.3%). That’s after a 15.5% drop in JOUT’s share price over the past six months.