Nautilus, the U.S. fitness equipment company, wants to expand through a diversified product range and more international sales this year. This comes after robust increases in sales and profits last year, driven by the Bowflex Max Trainer and other product launches.
As already indicated in preliminary results last month, Nautilus reached sales of $274.4 million in 2014, amounting to an increase of 25 percent. It ended the year with a robust fourth quarter, in which sales expanded by 23 percent to $94.9 million.
Sales moved up by 28.5 percent for the direct segment for the full year to $175.6 million. U.S. credit approval rates jumped to 43.5 percent in the last quarter, up from 39.7 percent in the same quarter the previous year. Nautilus attributed this to the Bowflex Max Trainer, which has been purchased by consumers with stronger credit approval rates.
Meanwhile, sales for the retail segment inflated by 21.4 percent to $93.2 percent for the year, with strong demand for the cardio products launched by the company in the third quarter of 2013 and the latest range of treadmills.
Operating income from continuing operations climbed by 43 percent for the last quarter and for the full year it nearly doubled to $30.2 million, as Nautilus focused on lifting its gross margin and leveraging its infrastructure. The strongest gains came from the direct segment. The company ended the year with net income from continuing operations that was more than halved to $20.4 million – but then the results in 2013 included an income tax benefit of $33 million.
The company wants to capitalize on its product launches and to prepare more for this year. Another part of the expansion strategy calls for the group to expand in international markets, which Bruce Cazenave, Nautilus' chief executive, described as still largely untapped.
