SCUBA Industry - ScubaPro as a Proxy

[Cert1967]

How's the SCUBA industry fairing? Not very well, if SP is used as a proxy.

If the control of the JO wasn't so tight the diving division would likely be sold off and the money invested in the fishing segment. With control vested in a tightly held class of shares and zero debt, this is unlikely.

Left to you - extrapolating the 2020 v 2019 numbers to the future of your LDS.

Johnson Outdoors is the only publicly-traded dive company that breaks out its diving revenue that I am aware of. Any others you know of?

JOHNSON OUTDOORS, INC - Source Form 10-Q

THREE MONTHS ENDING JUNE 26, 2020 QUARTER VS JUNE 28, 2019

Diving, Net Sales - Unaffiliated Customers

2020 = 10.7M
2019 = 20.2M
​

Diving, Operating Profit

2020 = (2.6M)
2019 = 1.4M​

 

[Doctor Rig]

Interesting but scary business numbers. Thanks for sharing!

One my local dive shops shared that revenue was off 30%. From what I’ve observed that shop has worked their butt off this past season, so I would expect their cost of doing business is higher, not a good combination.

Yes, I too would like to hear how other LDS are doing and any guesses on how the present economic stress might effect the industry and diving in the years not come.

 

[apenland01]

Fishing is off the charts. I fish bass tournaments and there isn't any tackle in the stores. Everything is sold out. Boats are backordered 3-4 months. New $25,000 motors are backordered about the same time. People can't get anything and it's all out of stock. Go to any store that sells fishing gear and you'll see bare walls where there used to be fishing gear.

 

[wnissen]

How's the SCUBA industry fairing? Not very well, if SP is used as a proxy.

If the control of the JO wasn't so tight the diving division would likely be sold off and the money invested in the fishing segment. With control vested in a tightly held class of shares and zero debt, this is unlikely.

Left to you - extrapolating the 2020 v 2019 numbers to the future of your LDS.

Johnson Outdoors is the only publicly-traded dive company that breaks out its diving revenue that I am aware of. Any others you know of?

JOHNSON OUTDOORS, INC - Source Form 10-Q

THREE MONTHS ENDING JUNE 26, 2020 QUARTER VS JUNE 28, 2019

Diving, Net Sales - Unaffiliated Customers

2020 = 10.7M
2019 = 20.2M
​

Diving, Operating Profit

2020 = (2.6M)
2019 = 1.4M​

Brutal. Some of that may be temporary, shops reducing or cancelling orders to conserve cash, but once they sell through their existing inventory, they'll start ordering again. But I doubt the bulk of it will recover until the tropical resorts are once again full of the vacation divers that drive the industry. Thanks for posting.

 

[Barnaby'sDad]

Fishing is off the charts. I fish bass tournaments and there isn't any tackle in the stores. Everything is sold out. Boats are backordered 3-4 months. New $25,000 motors are backordered about the same time. People can't get anything and it's all out of stock. Go to any store that sells fishing gear and you'll see bare walls where there used to be fishing gear.

I’ve been reading the same thing in the news lately about RV sales, but every RV lot I drive by (there are several in my area) is full...so they can’t be selling that well.

 

[tridacna]

Ironically, even shops that want inventory can't get it. A lot of SCUBA equipment comes from Italy and supply is not there. Think SP, Mares and Cressi.

 

[runsongas]

scuba is a mostly travel segment is why. all travel is pretty screwed currently.

fishing, hunting, weightlifting, etc that you can do locally without travel are all booming

 

[tridacna]

scuba is a mostly travel segment is why. all travel is pretty screwed currently.

fishing, hunting, weightlifting, etc that you can do locally without travel are all booming

Golf industry having fantastic year.

 

[greeniguana]

ScubaPro should diversify into ammo manufacturing.

 

[lowwall]

ScubaPro should diversify into ammo manufacturing.

But seriously, it's a very expensive business to get into and good luck breaking even once demand subsides to anywhere near historical averages. The reason there are shortages at all is the big producers aren't willing to make unfettered capital investments to fulfill what they all see as unsustainable demand levels.

But back to Johnson Outdoors. They already are somewhat protected by diversification, if you look at the 20th page of the pdf the OP provided, you'll see that the diving division produces only around 10% of their income. The bulk of it, nearly 4/5ths comes from fishing products, which is currently taking off although it wasn't fully reflected in this report which ended on June 26. Watercraft and camping make up the rest and are also doing quite well.