The Q2 operating loss at Bowflex, the former Nautilus, was 22 percent less than the year-ago quarter at $11.2 million versus a loss of $14.3 million for the period ended Sep. 30. The loss from continuing operations, meanwhile, shrunk by 18.0 percent to $12.5 million from $15.3 million. Gross margin improved by 300 basis points to 20.5 percent from 17.5 percent.
Total net sales slipped by 26 percent to $48.7 million from $65.5 million as the retail environment remained challenging, the group said. Bowflex countered the environment with tight cost controls, but it expects the difficult macroeconomic landscape to persist in Q3. The company says it’s “strategically positioned” to capitalize on the long-term shift to connected at-home fitness with new strength and cardio products.
Direct segment sales fell by 15.3 percent to $20.7 million on lower consumer demand. Cardio sales, meanwhile, slipped by 29.9 percent year-over-year, largely on lower demand for the Max Trainer and elliptical equipment.
Bowflex has lowered its FY24 outlook. The company dropped its annual sales forecast by 20 percent to a range of $215 to $240 million from $270 to $300 million. The annual adjusted Ebitda loss is now pegged at $15 to $25 million versus prior guidance of a $15 million loss to breakeven.
