Nautilus benefited from improved consumer credit conditions in the U.S. in the first quarter, as its consumer-direct operations recorded a 26 percent hike in sales to $42.4 million and a 122 percent jump in operating income to $6.7 million, thanks also to strong demand for its cardio products, led by the Bowflex Treadclimber. Sales to retailers fell by 9 percent to $15.1 million, generating 14 percent lower operating earnings of $1.9 million in spite of an improved gross margin of 24.9 percent. The management is confident in the long-term potential of its retail business as it prepares the launch of a new line of cardio-fitness equipment next autumn.

Topics