The outdoor gear maker expects a $5M-$6M tax expense increase in fiscal 2026 as prior tariff relief benefits expire.
Johnson Outdoors warned of a $5M-$6M full-year tax expense in fiscal 2026 after losing tariff refunds that previously offset costs. The company reported Q3 2026 sales growth of 5% year-over-year, with operating income rising to $18.3 million from $11 million in the prior-year period.
Management attributed the tax expense increase to the phase-out of temporary tariff relief, which had reduced costs in earlier quarters. The company’s operating income growth outpaced revenue gains, reflecting improved margins despite the looming tax impact.
Shares showed limited reaction in after-hours trading as investors focused on the broader earnings beat rather than the tax headwind.