Overall sales at Nautilus fell by 36 percent to $60.8 million for the quarter ended June 30. Revenues from its commercial business dropped by 40 percent to $20.7 million, and the company has retained Robert W. Baird to review strategic alternatives for that segment.
The net loss was $20.8 million this year against $8.9 million last year. This year’s results included an $11.8 million restructuring charge, mostly related to the write-off of leasehold improvements at its headquarters building, where it terminated its existing lease and executed a new lease for a smaller space with annual savings of $3.3 million. Last year’s results included restructuring charges of $2.5 million primarily related to severance, inventory reserves and settlement of a terminated license.
As for the commercial business, the company said it had about $30 million in net assets invested there, and that it could still break even at $330 million in annual sales from its other two businesses. It pointed out that the retail business had income from operations of $1.2 million against a loss of $0.2 million last year, and the direct business had income of $0.6 million compared with a loss of $0.6 million last year. The commercial division had a loss of $7.2 million compared with a loss of $1.1 million in the period.
Sales in the direct-to-consumer channel fell by 32 percent to $28.2 million while sales in the retail business fell by 40 percent to $11.4 million.
