How did Johnson Outdoor's revenue and expenses trend in Q1 2025?

Johnson Outdoor's revenue and expenses in Q1 2025 are characterized by a decline in revenue and an increase in expenses, resulting in a negative net income.

1. **Revenue Trend**: The company's revenue for Q1 2025 was $107.65 million. This represents a decrease from the previous year's revenue of $138.6 million for the same quarter, indicating a 22% decline. This decline was due to ongoing market challenges, a cautious retail environment, and competitive pressures.
2. **Expense Trend**: Johnson Outdoor's operating expenses decreased by $400,000 compared to the same quarter last year. This indicates some control over costs, despite the challenging market conditions. The company also reduced its inventory by $66 million, which is a positive sign for financial management.
3. **Net Income**: The company reported a net loss of $15.3 million for Q1 2025, a significant drop from a net income of $4.0 million in the previous year's first quarter. This reflects the impact of revenue decline and increased expenses on the company's profitability.
4. **Gross Margin**: The gross margin of the company declined to 29.9% in Q1 2025 from 38.1% in the prior year. This decline was due to unfavorable overhead absorption and an unfavorable product mix, as well as increased promotional pricing.

In conclusion, Johnson Outdoor's revenue and expenses in Q1 2025 showed a decline in revenue and an increase in expenses, leading to a negative net income. The company's cost control measures and inventory management strategies have helped mitigate some of the profit losses, but the challenging market conditions and competitive pressures continue to impact the company's financial performance.