| SEGMENTS OF BUSINESS |
SEGMENTS OF BUSINESS The Company conducts its worldwide operations through separate business segments, each of which represents major product lines. Operations are conducted in the United States and various foreign countries, primarily in Europe, Canada and the Pacific Basin.
The Company’s Chief Executive Officer, who has been identified as the chief operating decision maker, "CODM," primarily uses operating profit as the measure of profit or loss to assess segment performance and allocate resources. Operating profit represents net sales less cost of goods sold and operating expenses. Net Sales are directly attributed to each segment. Segment operating expenses include operating expenses directly attributable to the segment, as well as certain shared corporate administration and other costs which are allocated to the segments in a reasonable manner considering the specific facts and circumstances of the expenses being allocated. The CODM evaluates segment profitability based on operating profit (loss) because it provides key insights to operational leverage and other key operational metrics for each segment. Additionally, segment operating profit (loss) is used in the annual budgeting and forecasting process, and budget-to-actual and forecast-to-actual variances are considered when determining how resources should be allocated to each segment.
Net sales and operating profit include both sales to customers, as reported in the Company’s accompanying Condensed Consolidated Statements of Operations, and interunit transfers, which are priced to recover cost plus an appropriate profit margin. Total assets represent assets that are used in the Company’s operations in each business segment at the end of the periods presented.
A summary of the Company’s operations by business segment is presented below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended July 3, 2026 | Fishing | | Camping & Watercraft Recreation | | Diving | | Other/Corporate | | Total | | Unaffiliated customers | $ | 149,522 | | | $ | 16,395 | | | $ | 23,313 | | | $ | 501 | | | $ | 189,731 | | | Interunit transfers | 463 | | | 37 | | | — | | | (500) | | | — | | | Net Sales | 149,985 | | | 16,432 | | | 23,313 | | | 1 | | | 189,731 | | | Cost of goods sold | 87,050 | | | 7,889 | | | 8,944 | | | (87) | | | 103,796 | | | Gross profit | 62,935 | | | 8,543 | | | 14,369 | | | 88 | | | 85,935 | | | Marketing and selling expense | 27,221 | | | 5,483 | | | 6,649 | | | 2,458 | | | 41,811 | | | Administrative management, finance and information systems expense | 2,837 | | | 1,224 | | | 3,205 | | | 9,832 | | | 17,098 | | | | | | | | | | | | | Research and development expense | 6,513 | | | 720 | | | 1,229 | | | 221 | | | 8,683 | | | Operating profit (loss) | $ | 26,364 | | | $ | 1,116 | | | $ | 3,286 | | | $ | (12,423) | | | $ | 18,343 | | | | | | | | | | | | | Depreciation and Amortization Expense | $ | 3,657 | | | $ | 393 | | | $ | 327 | | | $ | 541 | | | $ | 4,918 | | | Capital Expenditures | $ | (3,182) | | | $ | (555) | | | $ | (163) | | | $ | (1,954) | | | $ | (5,854) | | | Total assets (end of period) | $ | 313,031 | | | $ | 74,889 | | | $ | 95,798 | | | $ | 164,652 | | | $ | 648,370 | | | | | | | | | | | | | Three Months Ended June 27, 2025 | Fishing | | Camping & Watercraft Recreation | | Diving | | Other/Corporate | | Total | | Unaffiliated customers | $ | 140,243 | | | $ | 18,884 | | | $ | 21,197 | | | $ | 331 | | | $ | 180,655 | | | Interunit transfers | 436 | | | 24 | | | 4 | | | (464) | | | — | | | Net Sales | 140,679 | | | 18,908 | | | 21,201 | | | (133) | | | 180,655 | | | Cost of goods sold | 93,409 | | | 10,105 | | | 9,438 | | | (224) | | | 112,728 | | | Gross profit | 47,270 | | | 8,803 | | | 11,763 | | | 91 | | | 67,927 | | | Marketing and selling expense | 24,796 | | | 5,422 | | | 5,168 | | | 2,167 | | | 37,553 | | | Administrative management, finance and information systems expense | 2,255 | | | 1,076 | | | 3,781 | | | 8,311 | | | 15,423 | | | | | | | | | | | | | Research and development expense | 5,666 | | | 717 | | | 1,238 | | | — | | | 7,621 | | | Operating profit (loss) | $ | 14,553 | | | $ | 1,588 | | | $ | 1,576 | | | $ | (10,387) | | | $ | 7,330 | | | | | | | | | | | | | Depreciation and Amortization Expense | $ | 3,822 | | | $ | 424 | | | $ | 257 | | | $ | 756 | | | $ | 5,259 | | | Capital Expenditures | $ | (3,606) | | | $ | (79) | | | $ | (391) | | | $ | (372) | | | $ | (4,448) | | | Total assets (end of period) | $ | 304,451 | | | $ | 78,304 | | | $ | 97,008 | | | $ | 154,710 | | | $ | 634,473 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended July 3, 2026 | Fishing | | Camping & Watercraft Recreation | | Diving | | Other/Corporate | | Total | | Unaffiliated customers | $ | 420,254 | | | $ | 45,019 | | | $ | 58,602 | | | $ | 1,271 | | | $ | 525,146 | | | Interunit transfers | 1,126 | | | 67 | | | — | | | (1,193) | | | — | | | Net Sales | 421,380 | | | 45,086 | | | 58,602 | | | 78 | | | 525,146 | | | Cost of goods sold | 263,027 | | | 24,512 | | | 24,760 | | | (186) | | | 312,113 | | | Gross profit | 158,353 | | | 20,574 | | | 33,842 | | | 264 | | | 213,033 | | | Marketing and selling expense | 78,445 | | | 14,446 | | | 18,762 | | | 6,929 | | | 118,582 | | | Administrative management, finance and information systems expense | 8,402 | | | 3,317 | | | 8,586 | | | 23,254 | | | 43,559 | | | | | | | | | | | | | Research and development expense | 18,917 | | | 2,025 | | | 3,780 | | | 390 | | | 25,112 | | | Operating profit (loss) | $ | 52,589 | | | $ | 786 | | | $ | 2,714 | | | $ | (30,309) | | | $ | 25,780 | | | | | | | | | | | | | Depreciation and Amortization Expense | $ | 11,147 | | | $ | 1,201 | | | $ | 956 | | | $ | 1,711 | | | $ | 15,015 | | | Capital Expenditures | $ | (11,672) | | | $ | (1,057) | | | $ | (252) | | | $ | (3,369) | | | $ | (16,350) | | | Total assets (end of period) | $ | 313,031 | | | $ | 74,889 | | | $ | 95,798 | | | $ | 164,652 | | | $ | 648,370 | | | | | | | | | | | | | Nine Months Ended June 27, 2025 | Fishing | | Camping & Watercraft Recreation | | Diving | | Other/Corporate | | Total | | Unaffiliated customers | $ | 357,138 | | | $ | 46,153 | | | $ | 52,691 | | | $ | 671 | | | $ | 456,653 | | | Interunit transfers | 904 | | | 58 | | | 14 | | | (976) | | | — | | | Net Sales | 358,042 | | | 46,211 | | | 52,705 | | | (305) | | | 456,653 | | | Cost of goods sold | 250,476 | | | 25,091 | | | 22,614 | | | (504) | | | 297,677 | | | Gross profit | 107,566 | | | 21,120 | | | 30,091 | | | 199 | | | 158,976 | | | Marketing and selling expense | 66,310 | | | 13,753 | | | 14,596 | | | 7,922 | | | 102,581 | | | Administrative management, finance and information systems expense | 7,850 | | | 3,236 | | | 11,559 | | | 18,489 | | | 41,134 | | | | | | | | | | | | | Research and development expense | 17,645 | | | 1,943 | | | 3,681 | | | — | | | 23,269 | | | Operating profit (loss) | $ | 15,761 | | | $ | 2,188 | | | $ | 255 | | | $ | (26,212) | | | $ | (8,008) | | | | | | | | | | | | | Depreciation and Amortization Expense | $ | 10,885 | | | $ | 1,273 | | | $ | 739 | | | $ | 2,402 | | | $ | 15,299 | | | Capital Expenditures | $ | (9,881) | | | $ | (322) | | | $ | (934) | | | $ | (689) | | | $ | (11,826) | | | Total assets (end of period) | $ | 304,451 | | | $ | 78,304 | | | $ | 97,008 | | | $ | 154,710 | | | $ | 634,473 | |
Other Segment Information During the three and nine month periods ended July 3, 2026, one customer of the Company's Fishing and Camping & Watercraft Recreation segments accounted for more than 10% of the Company's consolidated revenues, which amounted to sales of approximately $28,573 and $108,252, respectively. During the three and nine month periods ended June 27, 2025, one customer of the Company's Fishing and Camping & Watercraft Recreation segments each accounted for more than 10% of the Company's consolidated revenues, which amounted to sales of approximately $34,171 and $95,215, respectively.
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