What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 93 added, 95 removed, 100 unchanged (65% of the section changed)

1 unchanged sentence

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) includes comments and analysis relating to the results of operations and financial condition of Johnson Outdoors Inc.

and its subsidiaries (collectively, the “Company”) as of and for the three and six month periods ended April 3, 2026 and March 28, 2025.

and its subsidiaries (collectively, the “Company”) as of and for the three and nine month periods ended July 3, 2026 and June 27, 2025.

All monetary amounts, other than share and per share amounts, are stated in thousands.

1 unchanged sentence

Forward-Looking Statements

JOHNSON OUTDOORS INC.

Litigation Reform Act of 1995 and is including this statement for purposes of those safe harbor provisions.

Certain matters discussed in this Form 10-Q are “forward-looking statements,” and the Company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of those safe harbor provisions.

These forward-looking statements can generally be identified as such because they include phrases such as the Company “expects,” “believes,” “anticipates,” “intends,” use of words such as “confident,” “could,” “may,” “planned,” “potential,” “should,” “will,” “would” or the negative of such words or other words of similar meaning.

11 unchanged sentences

the Company’s success in integrating strategic acquisitions;

the risk of future writedowns of goodwill or other long-lived assets;

the risk of future write-downs of goodwill or other long-lived assets;

the ability of the Company’s customers to meet payment obligations;

13 unchanged sentences

Minn Kota®, Cannon®, Humminbird®, Jetboil®, Old Town®, Carlisle®, and SCUBAPRO®.

JOHNSON OUTDOORS INC.

The Company is a leading global manufacturer and marketer of branded seasonal outdoor recreation products used primarily for fishing, diving, paddling and camping.

3 unchanged sentences

Johnson-Leipold, the Company’s Chairman and Chief Executive Officer, members of her family and related entities.

Net sales of $194,480 for the second quarter of fiscal 2026 increased $26,131, or 16%, from the same period in the prior year.

Net sales of $189,731 for the third quarter of fiscal 2026 increased $9,076, or 5%, from the same period in the prior year.

The increase between quarterly periods was mainly driven by improved trade conditions, price increases, and strong overall product response in the markets in which we compete, especially in the Fishing segment.

Gross margin increased to 38.8% compared to 35.0% in the prior year quarter.

The sales gain and margin improvement contributed to a $5,448 increase in operating income in the current year quarter versus the prior year quarter.

On February 20, 2026, the Supreme Court of the United States ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful.

Certain of the Company's imports were previously subject to such tariffs under IEEPA.

Effective April 20, 2026, the U.S.

Customs and Border Protection launched a platform for importers of record to begin submitting IEEPA tariff refund requests.

We are unable to estimate any applicable financial effects for any recovery of potential

JOHNSON OUTDOORS INC.

refunds, as the timing and amount of recovery are uncertain.

We will continue to assess and evaluate new information as it becomes available.

Gross margin increased to 45.3% compared to 37.6% in the prior year quarter due in large part to tariff refunds received during the current quarter as discussed below.

The sales gain and margin improvement contributed to an $11,013 increase in operating income in the current year quarter versus the prior year quarter.

As discussed in "Note 10 - Contingencies," during the third fiscal quarter, the Company submitted claims for refunds of IEEPA tariffs previously paid on imports in fiscal 2025 and early 2026.

Refunds received through July 3, 2026 totaled approximately $15,600, including interest.

The Company recognized a benefit in Cost of sales on the accompanying Condensed Consolidated Statements of Operations for $15,015 representing the portion of the refund relating to products previously sold.

The Company’s business is seasonal in nature.

The second fiscal quarter traditionally falls within the Company’s primary selling season for its warm-weather outdoor recreation products.

The third fiscal quarter traditionally falls within the Company’s primary selling season for its warm-weather outdoor recreation products.

The table below sets forth a historical view of the Company’s seasonality during the last three fiscal years.

13 unchanged sentences

The Company’s net sales and operating profit (loss) by business segment for the periods shown below were as follows:

Three Months Ended Six Months Ended

April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025

JOHNSON OUTDOORS INC.

Three Months Ended Nine Months Ended

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Fishing $ 149,985 $ 140,679 $ 421,380 $ 358,042

12 unchanged sentences

See “Note 16 – Segments of Business” of the notes to the accompanying Condensed Consolidated Financial Statements for the definition of segment net sales and operating profit.

Net Sales - Second Fiscal Quarter

Consolidated net sales for the three months ended April 3, 2026 were $194,480, an increase of $26,131, or 16%, compared to $168,349 for the three months ended March 28, 2025.

Foreign currency translation had an impact of less than 1% on current year second quarter consolidated net sales compared to the prior year's second quarter consolidated net sales.

Net sales for the three months ended April 3, 2026 for the Fishing business were $159,025, an increase of $24,134, or 18%, from $134,891 during the second fiscal quarter of the prior year.

The increase in sales in this segment between quarters was mainly due to improved trade conditions, a stronger competitive position in the market, and pricing.

JOHNSON OUTDOORS INC.

Net sales for the Camping & Watercraft Recreation business were $18,053 for the second quarter of the current fiscal year, an increase of $201, or 1%, from the prior year net sales during the same period of $17,852.

Growth in e-commerce channels overcame the unfavorable impact of a continuing weak end market for watercraft recreation products.

Net sales for Diving for the second quarter of fiscal 2026 were $17,315, which increased $1,495, or 9%, compared to net sales of $15,820 for the three months ended March 28, 2025.

The sales increase over the prior year second quarter was primarily driven by the improved market conditions and growth in ecommerce.

Additionally, foreign currency translation had a favorable impact of approximately 5% on sales in this segment in the current year second quarter versus the prior year second quarter.

Net Sales - Third Fiscal Quarter

Consolidated net sales for the three months ended July 3, 2026 were $189,731, an increase of $9,076, or 5%, compared to $180,655 for the three months ended June 27, 2025.

Foreign currency translation had a negligible impact on current year third quarter consolidated net sales compared to the prior year's third quarter consolidated net sales.

Net sales for the three months ended July 3, 2026 for the Fishing business were $149,985, an increase of $9,306, or 7%, from $140,679 during the third fiscal quarter of the prior year.

The increase in sales in this segment between quarters was mainly due to a stronger competitive position in the market for Company products and product pricing increases between periods.

Net sales for the Camping & Watercraft Recreation business were $16,432 for the third quarter of the current fiscal year, a decrease of $2,476, or 13%, from the prior year net sales during the same period of $18,908.

The decline was driven primarily by the unfavorable impact of continuing weak marketplace conditions for the segment.

Net sales for Diving for the third quarter of fiscal 2026 were $23,313, which increased $2,112, or 10%, compared to net sales of $21,201 for the three months ended June 27, 2025.

The sales increase over the prior year third quarter was primarily driven by strong sales in the U.S.

and Asian marketplaces.

Additionally, foreign currency translation had a favorable impact of approximately 2% on sales in this segment in the current year quarter versus the prior year quarter.

Net Sales - Year-To-Date

Consolidated net sales for the six months ended April 3, 2026 were $335,415, an increase of $59,417, or 21.5%, compared to $275,998 for the six months ended March 28, 2025.

Foreign currency translation had a negligible impact on net sales of the current year to date period compared to the prior year to date period.

Net sales for the six months ended April 3, 2026 for the Fishing business were $271,395, an increase of $54,032, or 25%, from $217,363 during the prior year to date period.

The increase in sales in this segment between year to date periods was mainly due to improved trade conditions, sales generated by the launch of new products, and pricing.

Net sales for the six months ended April 3, 2026 for the Camping & Watercraft Recreation business were $28,654, an increase of $1,351, or 5%, from the prior year net sales during the same period of $27,303.

Growth in e-commerce channels overcame the unfavorable impact of a continuing weak end market for watercraft recreation products.

Net sales for the six months ended April 3, 2026 for the Diving business were $35,289, an increase of $3,785, or 12%, compared to net sales of $31,504 for the six months ended March 28, 2025.

The sales increase over the prior year to date period was primarily driven by the improved market conditions and growth in ecommerce.

Consolidated net sales for the nine months ended July 3, 2026 were $525,146, an increase of $68,493, or 15.0%, compared to $456,653 for the nine months ended June 27, 2025.

Foreign currency translation had an impact of less than 1% on net sales of the current year to date period compared to the prior year to date period.

Net sales for the nine months ended July 3, 2026 for the Fishing business were $421,380, an increase of $63,338, or 18%, from $358,042 during the prior year to date period.

The increase in sales in this segment between year to date periods was mainly due to sales generated by a stronger competitive position for Company products and product pricing increases between periods.

Net sales for the nine months ended July 3, 2026 for the Camping & Watercraft Recreation business were $45,086, a decrease of $1,125, or 2%, from the prior year net sales during the same period of $46,211 due primarily to the unfavorable impact of a continuing weak end-market for watercraft recreation products.

Net sales for the nine months ended July 3, 2026 for the Diving business were $58,602, an increase of $5,897, or 11%, compared to net sales of $52,705 for the nine months ended June 27, 2025.

The sales increase over the prior year to date period was primarily driven by an improved market position and the success of new products introduced during the current year to date period.

Additionally, foreign currency translation had a favorable impact of approximately 3% on sales in this segment versus the prior year to date period.

JOHNSON OUTDOORS INC.

Cost of Sales

Cost of sales for the three months ended April 3, 2026 of $118,992 increased $9,509 compared to $109,483 for the three months ended March 28, 2025, due primarily to the increase in sales volumes over the prior year quarter as well as higher costs from tariffs in the current year second quarter on purchased raw materials and components.

Higher material costs were offset in part by lower labor costs driven by efficiencies from cost cutting initiatives.

Cost of sales for the six months ended April 3, 2026 of $208,317 increased $23,368 compared to $184,949 for the six months ended March 28, 2025, due primarily to the increase in sales volumes over the prior year to date period as well as higher costs from tariffs on purchased raw materials and components incurred in the current year to date period.

Higher material costs were offset in part by lower labor costs driven by efficiencies from cost cutting initiatives.

Cost of sales for the three months ended July 3, 2026 of $103,796 decreased $8,932 compared to $112,728 for the three months ended June 27, 2025.

The decline year over year is driven primarily by the refund of approximately $15,000 of IEEPA tariffs received by the Company during the current year quarter which were recognized as a reduction to Cost of sales.

The impact of these refunds was offset in part by additional costs related to increased sales volumes and higher costs of raw materials.

Cost of sales for the nine months ended July 3, 2026 of $312,113 increased $14,436 compared to $297,677 for the nine months ended June 27, 2025, due primarily to the increase in sales volumes over the prior year to date period as well as higher costs of raw materials and components incurred in the current year to date period.

The cost increases were offset in part by the tariff refunds noted above and lower labor and overhead costs driven by volume efficiencies and cost cutting initiatives implemented by the Company during the current year to date period.

Gross Profit Margin

For the three months ended April 3, 2026, gross profit as a percentage of net sales increased to 38.8% compared to 35.0% in the three month period ended March 28, 2025, mainly as a result of improved overhead absorption driven by higher sales volumes between the quarters.

Pricing actions taken by the Company and cost saving initiatives also helped offset the impact of incremental tariffs in the current quarter.

For the six months ended April 3, 2026, gross profit as a percentage of net sales increased to 37.9% compared to 33.0% in the six months ended March 28, 2025, mainly as a result improved overhead absorption driven by higher sales volumes between the periods.

Pricing actions taken by the Company and cost savings initiatives also helped to offset the impact of incremental tariffs in the current year to date period.

For the three months ended July 3, 2026, gross profit as a percentage of net sales increased to 45.3% compared to 37.6% in the three month period ended June 27, 2025.

The IEEPA tariff refunds noted above drove 7.9 points of improvement over the prior year period.

Improved overhead absorption driven by higher sales volumes between the quarters, pricing actions taken by the Company and cost saving initiatives offset the impact of raw material cost increases and additional tariffs paid in the current quarter.

For the nine months ended July 3, 2026, gross profit as a percentage of net sales increased to 40.6% compared to 34.8% in the nine months ended June 27, 2025.

The IEEPA tariff refunds noted above drove 2.9 points of the improvement between periods.

Additionally, pricing actions taken by the Company, improved overhead absorption and cost savings initiatives more than offset the impact of higher material costs incurred in the current year to date period to further drive margin improvement.

Operating Expenses

Operating expenses were $65,139 for the three months ended April 3, 2026, compared to $53,965 for the three months ended March 28, 2025.

Operating expenses were $67,592 for the three months ended July 3, 2026, compared to $60,597 for the three months ended June 27, 2025.

The main drivers of the $6,995 increase between quarters were higher sales-volume related costs as well as increased variable compensation costs.

Operating expenses were $119,661 for the six months ended April 3, 2026, compared to $106,387 for the six months ended March 28, 2025.

Operating expenses were $187,253 for the nine months ended July 3, 2026, compared to $166,984 for the nine months ended June 27, 2025.

The main drivers of the $20,269 increase between year to date periods were higher sales-volume related costs, higher variable compensation costs and additional professional services expense in the current year to date period.

JOHNSON OUTDOORS INC.

Operating Profit/Loss

Operating profit on a consolidated basis for the three month period ended April 3, 2026 was $10,349, compared to $4,901 in the second quarter of the prior fiscal year.

As discussed above, the improvement in operating profit between quarters was driven primarily by an increase in sales and gross margin improvements between periods.

Operating profit on a consolidated basis for the six month period ended April 3, 2026 was $7,437, compared to operating loss of $15,338 in the prior year to date period.

As discussed above, the improvement in operating profit (loss) was driven primarily by an increase in sales and gross margin improvements between periods.

Interest expense was $48 and $68 for the three months ended April 3, 2026 and March 28, 2025, respectively, and $105 and $115 for the six months ended April 3, 2026 and March 28, 2025, respectively.

Interest income was $632 and $625 for the three months ended April 3, 2026 and March 28, 2025, respectively, and $1,952 and $1,658 for the six months ended April 3, 2026 and March 28, 2025, respectively.

Operating profit on a consolidated basis for the three month period ended July 3, 2026 was $18,343, compared to $7,330 in the third quarter of the prior fiscal year.

As discussed above, the improvement in operating profit between quarters was driven primarily by the receipt of the IEEPA tariff refunds offset in part by the impact of higher operating expenses.

Operating profit on a consolidated basis for the nine month period ended July 3, 2026 was $25,780, compared to an operating loss of $8,008 in the prior year to date period.

As discussed above, the improvement in operating profit (loss) was driven primarily by the receipt of the IEEPA tariff refunds in addition to an increase in sales between periods.

Interest expense was $50 and $49 for the three months ended July 3, 2026 and June 27, 2025, respectively, and $155 and $164 for the nine months ended July 3, 2026 and June 27, 2025, respectively.

Interest income was $1,199 and $927 for the three months ended July 3, 2026 and June 27, 2025, respectively, and $3,151 and $2,585 for the nine months ended July 3, 2026 and June 27, 2025, respectively.

The current year quarter and year-to-date periods include $310 of interest income received on IEEPA tariff refunds.

Other Expense (Income), net

Other income was $726 for the three months ended April 3, 2026 compared to $1,300 in the prior year period.

The main driver of the $574 decrease period over period was a $418 decrease in net investment gains and earnings on the assets related to the Company's non-qualified deferred compensation plan in the current year quarter, entirely offset as a reduction to operating expense.

For the three months ended April 3, 2026, foreign currency exchange gains were $196 compared to foreign currency exchange losses of $21 for the three months ended March 28, 2025.

Other income was $332 for the six months ended April 3, 2026 compared to $974 in the prior year period.

The $642 decrease was primarily attributable to a $639 decrease in net investment gains and earnings on the assets related to the Company's non-qualified deferred compensation plan in the current year-to-date period, entirely offset as a reduction to operating expense.

For the six months ended April 3, 2026, foreign currency exchange gains were $128 compared to foreign currency exchange gains of $183 for the six months ended March 28, 2025.

Other income was $3,778 for the three months ended July 3, 2026 compared to $2,292 in the prior year period.

The main drivers of the $1,486 increase period over period was a $913 increase in net investment gains and earnings on the assets related

JOHNSON OUTDOORS INC.

to the Company's non-qualified deferred compensation plan in the current year quarter, entirely offset as an increase to operating expense between the same quarters.

Additionally, for the three months ended July 3, 2026, foreign currency exchange gains were $465 compared to foreign currency exchange losses of $457 for the three months ended June 27, 2025.

Other income was $3,446 for the nine months ended July 3, 2026 compared to $1,318 in the prior year period.

The $2,128 increase was primarily attributable to a $1,552 increase in net investment gains and earnings on the assets related to the Company's non-qualified deferred compensation plan in the current year-to-date period, entirely offset as an increase to operating expense between the same periods.

Additionally, foreign currency exchange gains were $592 for the nine months ended July 3, 2026, compared to foreign currency exchange losses of $274 for the nine months ended June 27, 2025.

Income Tax Expense

The Company’s provision for income taxes is based upon estimated annual effective tax rates in the tax jurisdictions in which the Company operates.

The Company recorded income tax expense of $798 and $2,843, respectively, in the three and six month periods ended April 3, 2026 which equated to an effective tax rate of 7.8% and 31.8%, respectively.

The effective tax rate was impacted by an adjustment related to the Company's U.S.

valuation allowance on deferred tax assets.

The Company recorded an expense of $1,854 during the three months ended March 28, 2025, which equated to an effective tax rate of 44.6%.

The Company recorded a benefit of $1,783 during the six months ended March 28, 2025, which equated to an effective tax benefit of 12.1%.

The Company recorded income tax expense of $8,322 and $11,165, respectively, in the three and nine month periods ended July 3, 2026 which equated to an effective tax rate of 35.8% and 34.7%, respectively.

The effective tax rate was impacted by the IEEPA tariff refunds, discussed above, which increased income in the U.S.

and overall income tax expense during the period.

The Company recorded an expense of $2,758 during the three months ended June 27, 2025, which equated to an effective tax rate of 26.3%.

The Company recorded expense of $975 during the nine months ended June 27, 2025, which equated to an effective tax rate of (22.8)%.

Net Income/Loss

Net income for the three months ended April 3, 2026 was $9,409, or $0.89 per diluted common class A and B share, compared to $2,304, or $0.22 per diluted common class A and B share, for the second quarter of the prior fiscal year.

Net income for the six months ended April 3, 2026 was $6,109, or $0.58 per diluted common class A and B share, compared to net loss of $12,986, or $1.26 per diluted common class A and B share, during the corresponding period of the prior fiscal year.

Net income for the three months ended July 3, 2026 was $14,948, or $1.42 per diluted common class A and B share, compared to $7,742, or $0.75 per diluted common class A and B share, for the third quarter of the prior fiscal year.

Net income for the nine months ended July 3, 2026 was $21,057, or $2.00 per diluted common class A and B share, compared to net loss of $5,244, or $0.52 per diluted common class A and B share, during the corresponding period of the prior fiscal year.

Liquidity and Financial Condition

Cash and cash equivalents and short term investments totaled $107,876 as of April 3, 2026, compared to $93,951 as of March 28, 2025.

The Company’s debt to total capitalization ratio was 0% as of April 3, 2026 and March 28, 2025.

The Company’s total debt balance was $0 as of each of April 3, 2026 and March 28, 2025.

Cash and cash equivalents and short term investments totaled $175,245 as of July 3, 2026, compared to $161,022 as of June 27, 2025.

The Company’s debt to total capitalization ratio was 0% as of July 3, 2026 and June 27, 2025.

The Company’s total debt balance was $0 as of each of July 3, 2026 and June 27, 2025.

See “Note 11 – Indebtedness” in the notes to the Company’s accompanying condensed consolidated financial statements for further discussion of our credit facilities.

Accounts receivable, net of allowance for credit losses, were $126,852 as of April 3, 2026, an increase of $10,076 compared to $116,776 as of March 28, 2025.

The increase is consistent with the increased sales volumes over the prior year quarter.

JOHNSON OUTDOORS INC.

Inventories were $186,900 as of April 3, 2026, an increase of $6,843, compared to $180,057 as of March 28, 2025.

The increase is the result of a strategic ramp-up of inventory and safety stock in response to higher sales volumes period over period.

Accounts payable were $52,332 at April 3, 2026 compared to $44,323 as of March 28, 2025.

The increase of $8,010 is consistent with the increase in inventory.

Accounts receivable, net of allowance for credit losses, were $76,414 as of July 3, 2026, a decrease of $5,579 compared to $81,993 as of June 27, 2025.

Inventories were $188,263 as of July 3, 2026, an increase of $24,531, compared to $163,732 as of June 27, 2025.

The increase in inventory balances was primarily the result of increased costs and a strategic ramp-up of inventory and safety stock in response to higher sales volumes experienced period over period.

Accounts payable were $53,192 at July 3, 2026 compared to $43,478 as of June 27, 2025.

The increase of $9,714 is consistent with the increase in inventory between periods.

The Company’s cash flows from operating, investing and financing activities, as presented in the Company’s accompanying Condensed Consolidated Statements of Cash Flows, are summarized in the following table:

Six months ended

(thousands) April 3,

2026 March 28,

Cash used for:

Nine months ended

(thousands) July 3,

2026 June 27,

Cash provided by/(used) for:

Operating activities $ 26,994 $ 32,810

2 unchanged sentences

Effect of foreign currency rate changes on cash (1,502) 527

Decrease in cash and cash equivalents $ (68,523) $ (55,862)

(Decrease) increase in cash and cash equivalents $ (1,154) $ 13,193

Operating Activities

Cash used for operations totaled $50,700 for the six months ended April 3, 2026 compared to $38,566 during the corresponding period of the prior fiscal year.

The increase in cash used for operations over the prior year six month period was due primarily to inventory changes between periods offset in part by higher income in the current year to date period.

Depreciation and amortization charges were $10,097 for the six month period ended April 3, 2026 compared to $10,041 for the corresponding period of the prior year.

JOHNSON OUTDOORS INC.

Cash provided by operations totaled $26,994 for the nine months ended July 3, 2026 compared to $32,810 during the corresponding period of the prior fiscal year.

The decrease in cash provided by operations over the prior year nine month period was due primarily to inventory changes between periods offset in part by higher income in the current year to date period.

Depreciation and amortization charges were $15,015 for the nine month period ended July 3, 2026 compared to $15,299 for the corresponding period of the prior year.

Investing Activities

Cash used for investing activities totaled $10,475 for the six months ended April 3, 2026 compared to $7,749 for the corresponding period of the prior fiscal year.

Cash used for investing activities totaled $16,329 for the nine months ended July 3, 2026 compared to $10,002 for the corresponding period of the prior fiscal year.

The prior year period reflects $12,197 paid to acquire a business, partially offset by proceeds from maturity of investments of $14,021.

Capital expenditures were $10,496 in the six months ended April 3, 2026, compared to $7,378 in the prior year to date period.

Capital expenditures were $16,350 in the nine months ended July 3, 2026, compared to $11,826 in the prior year to date period.

Any additional capital expenditures in fiscal 2026 are expected to be funded by working capital.

Financing Activities

Cash used for financing activities totaled $6,897 for the six months ended April 3, 2026 compared to $6,879 for the six month period ended March 28, 2025 and represents the payment of dividends and purchase of treasury stock for both periods.

The Company had no debt during either six month period ended April 3, 2026 and March 28, 2025.

Cash used for financing activities totaled $10,317 for the nine months ended July 3, 2026 compared to $10,142 for the nine month period ended June 27, 2025 and represents the payment of dividends and purchase of treasury stock for both periods.

The Company had no debt during either nine month period ended July 3, 2026 and June 27, 2025.

See Note 11 "Indebtedness" to the accompanying Condensed Consolidated Financial Statements for additional information on our credit facilities.

As of April 3, 2026 the Company held approximately $61,795 of cash, cash equivalents and short-term investments in bank accounts in foreign taxing jurisdictions.

As of July 3, 2026 the Company held approximately $69,226 of cash, cash equivalents and short-term investments in bank accounts in foreign taxing jurisdictions.

Contractual Obligations and Off Balance Sheet Arrangements

The Company has contractual obligations and commitments to make future payments including under operating leases and open purchase orders.

There have been no changes outside of the ordinary course of business in the specified contractual obligations during the quarter ended April 3, 2026.

There have been no changes outside of the ordinary course of business in the specified contractual obligations during the quarter ended July 3, 2026.

The Company utilizes letters of credit primarily as security for the payment of future claims under its workers compensation insurance.

Letters of credit outstanding were approximately $51 and $67 as of April 3, 2026 and March 28, 2025, respectively.

Letters of credit outstanding were approximately $51 and $67 as of July 3, 2026 and June 27, 2025, respectively.

The Company has no other off-balance sheet arrangements.

Critical Accounting Policies and Estimates

JOHNSON OUTDOORS INC.

The Company’s critical accounting policies and estimates are identified in the Company’s Annual Report on Form 10-K for the fiscal year ending October 3, 2025 in Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading “Critical Accounting Estimates,” which was filed with the Securities and Exchange Commission on December 12, 2025.

There were no significant changes to the Company’s critical accounting policies and estimates during the six months ended April 3, 2026.

There were no significant changes to the Company’s critical accounting policies and estimates during the nine months ended July 3, 2026.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis