JOHNSON OUTDOORS INC

Previous wording

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) includes comments and analysis relating to the results of operations and financial condition of Johnson Outdoors Inc. and its subsidiaries (collectively, the “Company”) as of and for the three and six month periods ended April 3, 2026 and March 28, 2025. All monetary amounts, other than share and per share amounts, are stated in thousands.

Current wording

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) includes comments and analysis relating to the results of operations and financial condition of Johnson Outdoors Inc. and its subsidiaries (collectively, the “Company”) as of and for the three and nine month periods ended July 3, 2026 and June 27, 2025. All monetary amounts, other than share and per share amounts, are stated in thousands.

Previous wording

Litigation Reform Act of 1995 and is including this statement for purposes of those safe harbor provisions. These forward-looking statements can generally be identified as such because they include phrases such as the Company “expects,” “believes,” “anticipates,” “intends,” use of words such as “confident,” “could,” “may,” “planned,” “potential,” “should,” “will,” “would” or the negative of such words or other words of similar meaning. Similarly, statements that describe the Company’s future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results or outcomes to differ materially from those currently anticipated.

Current wording

Certain matters discussed in this Form 10-Q are “forward-looking statements,” and the Company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of those safe harbor provisions. These forward-looking statements can generally be identified as such because they include phrases such as the Company “expects,” “believes,” “anticipates,” “intends,” use of words such as “confident,” “could,” “may,” “planned,” “potential,” “should,” “will,” “would” or the negative of such words or other words of similar meaning. Similarly, statements that describe the Company’s future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results or outcomes to differ materially from those currently anticipated.

Previous wording

Factors that could affect actual results or outcomes include the matters described under the caption “Risk Factors” in Item 1A of the Company’s Form 10-K for the fiscal year ended October 3, 2025 which was filed with the Securities and Exchange Commission on December 12, 2025 and the following: changes in economic conditions, consumer confidence levels and discretionary spending patterns in key markets; uncertainties stemming from political instability or changes in government policy and actions (and its impact on the economies in jurisdictions where the Company has operations); uncertainties stemming from changes in U.S. trade policies, tariffs, and the reaction of other countries to such changes; the global outbreaks of disease which may affect market and economic conditions and may have wide-ranging impacts on employees, customers and various aspects of our operations; the Company’s success in implementing its strategic plan, including its targeted sales growth platforms, innovation focus and its increasing digital presence; litigation costs related to actions of and disputes with third parties, including competitors; the Company’s continued success in its working capital management and cost-structure reductions; the Company’s success in integrating strategic acquisitions; the risk of future writedowns of goodwill or other long-lived assets; the ability of the Company’s customers to meet payment obligations; the impact of actions of the Company's competitors with respect to product development or enhancement or the introduction of new products into the Company's markets; movements in foreign currencies, interest rates or commodity costs; fluctuations in the prices of raw materials or the availability of raw materials or components used by the Company; any disruptions in the Company's supply chain as a result of material fluctuations in the Company's order volumes and requirements for raw materials and other components, or the demand for those same raw materials and components by third parties, necessary to manufacture and produce the Company's products including related to shortages in procuring necessary raw materials and components to manufacture and produce such products; the success of the Company’s suppliers and customers and the impact of any consolidation in the industries of the Company's suppliers and customers; the ability of the Company to deploy its capital successfully; unanticipated outcomes related to outsourcing certain manufacturing processes; unanticipated outcomes related to litigation matters; and adverse weather conditions and other factors impacting climate change legislation. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this filing. The Company assumes no obligation, and discl…

Excerpt shortened here; the source contains the full paragraph.

Current wording

Factors that could affect actual results or outcomes include the matters described under the caption “Risk Factors” in Item 1A of the Company’s Form 10-K for the fiscal year ended October 3, 2025 which was filed with the Securities and Exchange Commission on December 12, 2025 and the following: changes in economic conditions, consumer confidence levels and discretionary spending patterns in key markets; uncertainties stemming from political instability or changes in government policy and actions (and its impact on the economies in jurisdictions where the Company has operations); uncertainties stemming from changes in U.S. trade policies, tariffs, and the reaction of other countries to such changes; the global outbreaks of disease which may affect market and economic conditions and may have wide-ranging impacts on employees, customers and various aspects of our operations; the Company’s success in implementing its strategic plan, including its targeted sales growth platforms, innovation focus and its increasing digital presence; litigation costs related to actions of and disputes with third parties, including competitors; the Company’s continued success in its working capital management and cost-structure reductions; the Company’s success in integrating strategic acquisitions; the risk of future write-downs of goodwill or other long-lived assets; the ability of the Company’s customers to meet payment obligations; the impact of actions of the Company's competitors with respect to product development or enhancement or the introduction of new products into the Company's markets; movements in foreign currencies, interest rates or commodity costs; fluctuations in the prices of raw materials or the availability of raw materials or components used by the Company; any disruptions in the Company's supply chain as a result of material fluctuations in the Company's order volumes and requirements for raw materials and other components, or the demand for those same raw materials and components by third parties, necessary to manufacture and produce the Company's products including related to shortages in procuring necessary raw materials and components to manufacture and produce such products; the success of the Company’s suppliers and customers and the impact of any consolidation in the industries of the Company's suppliers and customers; the ability of the Company to deploy its capital successfully; unanticipated outcomes related to outsourcing certain manufacturing processes; unanticipated outcomes related to litigation matters; and adverse weather conditions and other factors impacting climate change legislation. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this filing. The Company assumes no obligation, and disc…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Net sales of $194,480 for the second quarter of fiscal 2026 increased $26,131, or 16%, from the same period in the prior year. The increase between quarterly periods was mainly driven by improved trade conditions, price increases, and strong overall product response in the markets in which we compete, especially in the Fishing segment. Gross margin increased to 38.8% compared to 35.0% in the prior year quarter. The sales gain and margin improvement contributed to a $5,448 increase in operating income in the current year quarter versus the prior year quarter.

Current wording

Net sales of $189,731 for the third quarter of fiscal 2026 increased $9,076, or 5%, from the same period in the prior year. The increase between quarterly periods was mainly driven by improved trade conditions, price increases, and strong overall product response in the markets in which we compete, especially in the Fishing segment. Gross margin increased to 45.3% compared to 37.6% in the prior year quarter due in large part to tariff refunds received during the current quarter as discussed below. The sales gain and margin improvement contributed to an $11,013 increase in operating income in the current year quarter versus the prior year quarter.

Previous wording

The Company’s business is seasonal in nature. The second fiscal quarter traditionally falls within the Company’s primary selling season for its warm-weather outdoor recreation products. The table below sets forth a historical view of the Company’s seasonality during the last three fiscal years.

Current wording

The Company’s business is seasonal in nature. The third fiscal quarter traditionally falls within the Company’s primary selling season for its warm-weather outdoor recreation products. The table below sets forth a historical view of the Company’s seasonality during the last three fiscal years.

Previous wording

Consolidated net sales for the three months ended April 3, 2026 were $194,480, an increase of $26,131, or 16%, compared to $168,349 for the three months ended March 28, 2025. Foreign currency translation had an impact of less than 1% on current year second quarter consolidated net sales compared to the prior year's second quarter consolidated net sales.

Current wording

Consolidated net sales for the three months ended July 3, 2026 were $189,731, an increase of $9,076, or 5%, compared to $180,655 for the three months ended June 27, 2025. Foreign currency translation had a negligible impact on current year third quarter consolidated net sales compared to the prior year's third quarter consolidated net sales.

Previous wording

Net sales for the three months ended April 3, 2026 for the Fishing business were $159,025, an increase of $24,134, or 18%, from $134,891 during the second fiscal quarter of the prior year. The increase in sales in this segment between quarters was mainly due to improved trade conditions, a stronger competitive position in the market, and pricing.

Current wording

Net sales for the three months ended July 3, 2026 for the Fishing business were $149,985, an increase of $9,306, or 7%, from $140,679 during the third fiscal quarter of the prior year. The increase in sales in this segment between quarters was mainly due to a stronger competitive position in the market for Company products and product pricing increases between periods.

Previous wording

Net sales for the Camping & Watercraft Recreation business were $18,053 for the second quarter of the current fiscal year, an increase of $201, or 1%, from the prior year net sales during the same period of $17,852. Growth in e-commerce channels overcame the unfavorable impact of a continuing weak end market for watercraft recreation products.

Current wording

Net sales for the Camping & Watercraft Recreation business were $16,432 for the third quarter of the current fiscal year, a decrease of $2,476, or 13%, from the prior year net sales during the same period of $18,908. The decline was driven primarily by the unfavorable impact of continuing weak marketplace conditions for the segment.

Previous wording

Net sales for Diving for the second quarter of fiscal 2026 were $17,315, which increased $1,495, or 9%, compared to net sales of $15,820 for the three months ended March 28, 2025. The sales increase over the prior year second quarter was primarily driven by the improved market conditions and growth in ecommerce. Additionally, foreign currency translation had a favorable impact of approximately 5% on sales in this segment in the current year second quarter versus the prior year second quarter.

Current wording

Net sales for Diving for the third quarter of fiscal 2026 were $23,313, which increased $2,112, or 10%, compared to net sales of $21,201 for the three months ended June 27, 2025. The sales increase over the prior year third quarter was primarily driven by strong sales in the U.S. and Asian marketplaces. Additionally, foreign currency translation had a favorable impact of approximately 2% on sales in this segment in the current year quarter versus the prior year quarter.

Previous wording

Consolidated net sales for the six months ended April 3, 2026 were $335,415, an increase of $59,417, or 21.5%, compared to $275,998 for the six months ended March 28, 2025. Foreign currency translation had a negligible impact on net sales of the current year to date period compared to the prior year to date period.

Current wording

Consolidated net sales for the nine months ended July 3, 2026 were $525,146, an increase of $68,493, or 15.0%, compared to $456,653 for the nine months ended June 27, 2025. Foreign currency translation had an impact of less than 1% on net sales of the current year to date period compared to the prior year to date period.

Previous wording

Net sales for the six months ended April 3, 2026 for the Fishing business were $271,395, an increase of $54,032, or 25%, from $217,363 during the prior year to date period. The increase in sales in this segment between year to date periods was mainly due to improved trade conditions, sales generated by the launch of new products, and pricing.

Current wording

Net sales for the nine months ended July 3, 2026 for the Fishing business were $421,380, an increase of $63,338, or 18%, from $358,042 during the prior year to date period. The increase in sales in this segment between year to date periods was mainly due to sales generated by a stronger competitive position for Company products and product pricing increases between periods.

Previous wording

Net sales for the six months ended April 3, 2026 for the Camping & Watercraft Recreation business were $28,654, an increase of $1,351, or 5%, from the prior year net sales during the same period of $27,303. Growth in e-commerce channels overcame the unfavorable impact of a continuing weak end market for watercraft recreation products.

Current wording

Net sales for the nine months ended July 3, 2026 for the Camping & Watercraft Recreation business were $45,086, a decrease of $1,125, or 2%, from the prior year net sales during the same period of $46,211 due primarily to the unfavorable impact of a continuing weak end-market for watercraft recreation products.

Previous wording

Net sales for the six months ended April 3, 2026 for the Diving business were $35,289, an increase of $3,785, or 12%, compared to net sales of $31,504 for the six months ended March 28, 2025. The sales increase over the prior year to date period was primarily driven by the improved market conditions and growth in ecommerce. Additionally, foreign currency translation had a favorable impact of approximately 5% on sales in this segment versus the prior year to date period.

Current wording

Net sales for the nine months ended July 3, 2026 for the Diving business were $58,602, an increase of $5,897, or 11%, compared to net sales of $52,705 for the nine months ended June 27, 2025. The sales increase over the prior year to date period was primarily driven by an improved market position and the success of new products introduced during the current year to date period. Additionally, foreign currency translation had a favorable impact of approximately 3% on sales in this segment versus the prior year to date period.

Previous wording

Cost of sales for the six months ended April 3, 2026 of $208,317 increased $23,368 compared to $184,949 for the six months ended March 28, 2025, due primarily to the increase in sales volumes over the prior year to date period as well as higher costs from tariffs on purchased raw materials and components incurred in the current year to date period. Higher material costs were offset in part by lower labor costs driven by efficiencies from cost cutting initiatives.

Current wording

Cost of sales for the nine months ended July 3, 2026 of $312,113 increased $14,436 compared to $297,677 for the nine months ended June 27, 2025, due primarily to the increase in sales volumes over the prior year to date period as well as higher costs of raw materials and components incurred in the current year to date period. The cost increases were offset in part by the tariff refunds noted above and lower labor and overhead costs driven by volume efficiencies and cost cutting initiatives implemented by the Company during the current year to date period.

Previous wording

For the three months ended April 3, 2026, gross profit as a percentage of net sales increased to 38.8% compared to 35.0% in the three month period ended March 28, 2025, mainly as a result of improved overhead absorption driven by higher sales volumes between the quarters. Pricing actions taken by the Company and cost saving initiatives also helped offset the impact of incremental tariffs in the current quarter.

Current wording

For the three months ended July 3, 2026, gross profit as a percentage of net sales increased to 45.3% compared to 37.6% in the three month period ended June 27, 2025. The IEEPA tariff refunds noted above drove 7.9 points of improvement over the prior year period. Improved overhead absorption driven by higher sales volumes between the quarters, pricing actions taken by the Company and cost saving initiatives offset the impact of raw material cost increases and additional tariffs paid in the current quarter.

Previous wording

For the six months ended April 3, 2026, gross profit as a percentage of net sales increased to 37.9% compared to 33.0% in the six months ended March 28, 2025, mainly as a result improved overhead absorption driven by higher sales volumes between the periods. Pricing actions taken by the Company and cost savings initiatives also helped to offset the impact of incremental tariffs in the current year to date period.

Current wording

For the nine months ended July 3, 2026, gross profit as a percentage of net sales increased to 40.6% compared to 34.8% in the nine months ended June 27, 2025. The IEEPA tariff refunds noted above drove 2.9 points of the improvement between periods. Additionally, pricing actions taken by the Company, improved overhead absorption and cost savings initiatives more than offset the impact of higher material costs incurred in the current year to date period to further drive margin improvement.

Previous wording

Operating expenses were $65,139 for the three months ended April 3, 2026, compared to $53,965 for the three months ended March 28, 2025. The main drivers of the $11,174 increase between quarters were higher sales-volume related costs as well as increased variable compensation costs.

Current wording

Operating expenses were $67,592 for the three months ended July 3, 2026, compared to $60,597 for the three months ended June 27, 2025. The main drivers of the $6,995 increase between quarters were higher sales-volume related costs as well as increased variable compensation costs.

Previous wording

Operating expenses were $119,661 for the six months ended April 3, 2026, compared to $106,387 for the six months ended March 28, 2025. The main drivers of the $13,274 increase between year to date periods were higher sales-volume related costs, higher variable compensation costs and additional professional services expense in the current year to date period.

Current wording

Operating expenses were $187,253 for the nine months ended July 3, 2026, compared to $166,984 for the nine months ended June 27, 2025. The main drivers of the $20,269 increase between year to date periods were higher sales-volume related costs, higher variable compensation costs and additional professional services expense in the current year to date period.

Previous wording

Operating profit on a consolidated basis for the three month period ended April 3, 2026 was $10,349, compared to $4,901 in the second quarter of the prior fiscal year. As discussed above, the improvement in operating profit between quarters was driven primarily by an increase in sales and gross margin improvements between periods.

Current wording

Operating profit on a consolidated basis for the three month period ended July 3, 2026 was $18,343, compared to $7,330 in the third quarter of the prior fiscal year. As discussed above, the improvement in operating profit between quarters was driven primarily by the receipt of the IEEPA tariff refunds offset in part by the impact of higher operating expenses.

Previous wording

Operating profit on a consolidated basis for the six month period ended April 3, 2026 was $7,437, compared to operating loss of $15,338 in the prior year to date period. As discussed above, the improvement in operating profit (loss) was driven primarily by an increase in sales and gross margin improvements between periods.

Current wording

Operating profit on a consolidated basis for the nine month period ended July 3, 2026 was $25,780, compared to an operating loss of $8,008 in the prior year to date period. As discussed above, the improvement in operating profit (loss) was driven primarily by the receipt of the IEEPA tariff refunds in addition to an increase in sales between periods.

Previous wording

Interest expense was $48 and $68 for the three months ended April 3, 2026 and March 28, 2025, respectively, and $105 and $115 for the six months ended April 3, 2026 and March 28, 2025, respectively.

Current wording

Interest expense was $50 and $49 for the three months ended July 3, 2026 and June 27, 2025, respectively, and $155 and $164 for the nine months ended July 3, 2026 and June 27, 2025, respectively.

Previous wording

Interest income was $632 and $625 for the three months ended April 3, 2026 and March 28, 2025, respectively, and $1,952 and $1,658 for the six months ended April 3, 2026 and March 28, 2025, respectively.

Current wording

Interest income was $1,199 and $927 for the three months ended July 3, 2026 and June 27, 2025, respectively, and $3,151 and $2,585 for the nine months ended July 3, 2026 and June 27, 2025, respectively. The current year quarter and year-to-date periods include $310 of interest income received on IEEPA tariff refunds.

Previous wording

Other income was $726 for the three months ended April 3, 2026 compared to $1,300 in the prior year period. The main driver of the $574 decrease period over period was a $418 decrease in net investment gains and earnings on the assets related to the Company's non-qualified deferred compensation plan in the current year quarter, entirely offset as a reduction to operating expense. For the three months ended April 3, 2026, foreign currency exchange gains were $196 compared to foreign currency exchange losses of $21 for the three months ended March 28, 2025.

Current wording

to the Company's non-qualified deferred compensation plan in the current year quarter, entirely offset as an increase to operating expense between the same quarters. Additionally, for the three months ended July 3, 2026, foreign currency exchange gains were $465 compared to foreign currency exchange losses of $457 for the three months ended June 27, 2025.

Previous wording

Other income was $332 for the six months ended April 3, 2026 compared to $974 in the prior year period. The $642 decrease was primarily attributable to a $639 decrease in net investment gains and earnings on the assets related to the Company's non-qualified deferred compensation plan in the current year-to-date period, entirely offset as a reduction to operating expense. For the six months ended April 3, 2026, foreign currency exchange gains were $128 compared to foreign currency exchange gains of $183 for the six months ended March 28, 2025.

Current wording

Other income was $3,446 for the nine months ended July 3, 2026 compared to $1,318 in the prior year period. The $2,128 increase was primarily attributable to a $1,552 increase in net investment gains and earnings on the assets related to the Company's non-qualified deferred compensation plan in the current year-to-date period, entirely offset as an increase to operating expense between the same periods. Additionally, foreign currency exchange gains were $592 for the nine months ended July 3, 2026, compared to foreign currency exchange losses of $274 for the nine months ended June 27, 2025.

Previous wording

The Company’s provision for income taxes is based upon estimated annual effective tax rates in the tax jurisdictions in which the Company operates. The Company recorded income tax expense of $798 and $2,843, respectively, in the three and six month periods ended April 3, 2026 which equated to an effective tax rate of 7.8% and 31.8%, respectively. The effective tax rate was impacted by an adjustment related to the Company's U.S. valuation allowance on deferred tax assets. The Company recorded an expense of $1,854 during the three months ended March 28, 2025, which equated to an effective tax rate of 44.6%. The Company recorded a benefit of $1,783 during the six months ended March 28, 2025, which equated to an effective tax benefit of 12.1%.

Current wording

The Company’s provision for income taxes is based upon estimated annual effective tax rates in the tax jurisdictions in which the Company operates. The Company recorded income tax expense of $8,322 and $11,165, respectively, in the three and nine month periods ended July 3, 2026 which equated to an effective tax rate of 35.8% and 34.7%, respectively. The effective tax rate was impacted by the IEEPA tariff refunds, discussed above, which increased income in the U.S. and overall income tax expense during the period. The Company recorded an expense of $2,758 during the three months ended June 27, 2025, which equated to an effective tax rate of 26.3%. The Company recorded expense of $975 during the nine months ended June 27, 2025, which equated to an effective tax rate of (22.8)%.

Previous wording

Net income for the three months ended April 3, 2026 was $9,409, or $0.89 per diluted common class A and B share, compared to $2,304, or $0.22 per diluted common class A and B share, for the second quarter of the prior fiscal year.

Current wording

Net income for the three months ended July 3, 2026 was $14,948, or $1.42 per diluted common class A and B share, compared to $7,742, or $0.75 per diluted common class A and B share, for the third quarter of the prior fiscal year.

Previous wording

Net income for the six months ended April 3, 2026 was $6,109, or $0.58 per diluted common class A and B share, compared to net loss of $12,986, or $1.26 per diluted common class A and B share, during the corresponding period of the prior fiscal year.

Current wording

Net income for the nine months ended July 3, 2026 was $21,057, or $2.00 per diluted common class A and B share, compared to net loss of $5,244, or $0.52 per diluted common class A and B share, during the corresponding period of the prior fiscal year.

Previous wording

Cash and cash equivalents and short term investments totaled $107,876 as of April 3, 2026, compared to $93,951 as of March 28, 2025. The Company’s debt to total capitalization ratio was 0% as of April 3, 2026 and March 28, 2025. The Company’s total debt balance was $0 as of each of April 3, 2026 and March 28, 2025. See “Note 11 – Indebtedness” in the notes to the Company’s accompanying condensed consolidated financial statements for further discussion of our credit facilities.

Current wording

Cash and cash equivalents and short term investments totaled $175,245 as of July 3, 2026, compared to $161,022 as of June 27, 2025. The Company’s debt to total capitalization ratio was 0% as of July 3, 2026 and June 27, 2025. The Company’s total debt balance was $0 as of each of July 3, 2026 and June 27, 2025. See “Note 11 – Indebtedness” in the notes to the Company’s accompanying condensed consolidated financial statements for further discussion of our credit facilities.

Previous wording

Inventories were $186,900 as of April 3, 2026, an increase of $6,843, compared to $180,057 as of March 28, 2025. The increase is the result of a strategic ramp-up of inventory and safety stock in response to higher sales volumes period over period. Accounts payable were $52,332 at April 3, 2026 compared to $44,323 as of March 28, 2025. The increase of $8,010 is consistent with the increase in inventory.

Current wording

Accounts receivable, net of allowance for credit losses, were $76,414 as of July 3, 2026, a decrease of $5,579 compared to $81,993 as of June 27, 2025. Inventories were $188,263 as of July 3, 2026, an increase of $24,531, compared to $163,732 as of June 27, 2025. The increase in inventory balances was primarily the result of increased costs and a strategic ramp-up of inventory and safety stock in response to higher sales volumes experienced period over period. Accounts payable were $53,192 at July 3, 2026 compared to $43,478 as of June 27, 2025. The increase of $9,714 is consistent with the increase in inventory between periods.

Previous wording

Cash used for operations totaled $50,700 for the six months ended April 3, 2026 compared to $38,566 during the corresponding period of the prior fiscal year. The increase in cash used for operations over the prior year six month period was due primarily to inventory changes between periods offset in part by higher income in the current year to date period. Depreciation and amortization charges were $10,097 for the six month period ended April 3, 2026 compared to $10,041 for the corresponding period of the prior year.

Current wording

Cash provided by operations totaled $26,994 for the nine months ended July 3, 2026 compared to $32,810 during the corresponding period of the prior fiscal year. The decrease in cash provided by operations over the prior year nine month period was due primarily to inventory changes between periods offset in part by higher income in the current year to date period. Depreciation and amortization charges were $15,015 for the nine month period ended July 3, 2026 compared to $15,299 for the corresponding period of the prior year.

Previous wording

Cash used for investing activities totaled $10,475 for the six months ended April 3, 2026 compared to $7,749 for the corresponding period of the prior fiscal year. The prior year period reflects $12,197 paid to acquire a business, partially offset by proceeds from maturity of investments of $11,826. Capital expenditures were $10,496 in the six months ended April 3, 2026, compared to $7,378 in the prior year to date period. Any additional capital expenditures in fiscal 2026 are expected to be funded by working capital.

Current wording

Cash used for investing activities totaled $16,329 for the nine months ended July 3, 2026 compared to $10,002 for the corresponding period of the prior fiscal year. The prior year period reflects $12,197 paid to acquire a business, partially offset by proceeds from maturity of investments of $14,021. Capital expenditures were $16,350 in the nine months ended July 3, 2026, compared to $11,826 in the prior year to date period. Any additional capital expenditures in fiscal 2026 are expected to be funded by working capital.

Previous wording

Cash used for financing activities totaled $6,897 for the six months ended April 3, 2026 compared to $6,879 for the six month period ended March 28, 2025 and represents the payment of dividends and purchase of treasury stock for both periods. The Company had no debt during either six month period ended April 3, 2026 and March 28, 2025. See Note 11 "Indebtedness" to the accompanying Condensed Consolidated Financial Statements for additional information on our credit facilities.

Current wording

Cash used for financing activities totaled $10,317 for the nine months ended July 3, 2026 compared to $10,142 for the nine month period ended June 27, 2025 and represents the payment of dividends and purchase of treasury stock for both periods. The Company had no debt during either nine month period ended July 3, 2026 and June 27, 2025. See Note 11 "Indebtedness" to the accompanying Condensed Consolidated Financial Statements for additional information on our credit facilities.

Previous wording

As of April 3, 2026 the Company held approximately $61,795 of cash, cash equivalents and short-term investments in bank accounts in foreign taxing jurisdictions.

Current wording

As of July 3, 2026 the Company held approximately $69,226 of cash, cash equivalents and short-term investments in bank accounts in foreign taxing jurisdictions.

Previous wording

The Company’s critical accounting policies and estimates are identified in the Company’s Annual Report on Form 10-K for the fiscal year ending October 3, 2025 in Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading “Critical Accounting Estimates”, which was filed with the Securities and Exchange Commission on December 12, 2025. There were no significant changes to the Company’s critical accounting policies and estimates during the six months ended April 3, 2026.

Current wording

The Company’s critical accounting policies and estimates are identified in the Company’s Annual Report on Form 10-K for the fiscal year ending October 3, 2025 in Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading “Critical Accounting Estimates,” which was filed with the Securities and Exchange Commission on December 12, 2025. There were no significant changes to the Company’s critical accounting policies and estimates during the nine months ended July 3, 2026.