Johnson Outdoors Inc. (NASDAQ:JOUT) Q4 2019 Earnings Conference Call - Final Transcript

Dec 06, 2019 • 11:00 am ET

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Johnson Outdoors Inc. (NASDAQ:JOUT) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] Our first question comes from Anthony Lebiedzinski of Sidoti. Your line is now open.

Analyst
Anthony Lebiedzinski

Good morning, and thank you for taking the questions. So obviously a very solid performance here in the quarter. I know, you guys talked about -- a little bit about tariffs as well. So Dave, I guess the reason that you expect the tariff impact to be more negative in fiscal '20 versus fiscal '19, is it because of the new tariffs or is it just the timing of the -- of some issues? Maybe if you could just clarify that for us?

Executive
David W. Johnson

Yes. It's both. It's the new tariffs that were rolled in a few months ago, affecting our costs, as well as we do have an exclusion that expires in March. So we'll try to re-up for that, but right now, we're not counting on that.

Analyst
Anthony Lebiedzinski

Okay. Got it. All right. And then, in terms of Fishing category, so it was certainly very good in the quarter that you just reported. There are a couple of new competitors in the field. So just wondering, what you guys -- have you seen anything from your retail partners as far as your ability to maintain your floor space? Have you been able to do that or just trying to get a better sense as to how you're looking to tackle this, as some of this is new competition?

Executive
Helen Johnson-Leipold

It's still early, but so far, our selling is going as planned. So we'll know more at the end of our first quarter.

Analyst
Anthony Lebiedzinski

Got it. Okay. And the balance sheet continues to be very strong, building up cash. What are your thoughts as to deploying that cash?

Executive
Helen Johnson-Leipold

Well, we've been looking at all options, doing a lot of looking obviously at opportunities to do acquisitions. We are actively out there. I would say that right now, we are feeling that the opportunities are good. It's not good timing from the standpoint of the multiples and -- but again, we're looking at everything and considering all the options. It's great to have a strong balance sheet at this point.

Analyst
Anthony Lebiedzinski

Absolutely. And the last question for me, can you give us some updated thoughts as to how are you doing with your direct-to-consumer business? I know you significantly improved your websites a couple of years back. So I just wanted to get an update on that. Thank you.

Executive
Helen Johnson-Leipold

It's doing well. Our direct-to-consumer, we consider it all e-commerce. And so our e-tailers are very important and B2C is just a piece of it. But having the new and the revised website has really helped us from a marketing communication standpoint, and it's driving both sales into our bricks and mortar, as well as through our e-commerce channel. So we're feeling good about it. We still have a lot of work to do, and it will be constantly evolving, but it's great that we've got all businesses actively participating in the omni-channel opportunity.

Analyst
Anthony Lebiedzinski

Got it. Okay. Thank you,