Nautilus reported a 22 percent rise in total sales to $46.3 million for the third quarter ended Sept. 30, driven by an increase of 70 percent to $19.4 million in its Retail segment following the introduction of new cardio products such as Schwinn recumbent and upright bikes and elliptical machines. In the Direct segment, revenues rose by 3 percent to $25.7 million. Revenues from royalties were down to $1.2 million from $1.6 million. Gross margins improved by 4.0 percentage points in the Retail segment and by 3.1 percentage points in the Direct segment, but the consolidated gross margin decline by 1.6 percentage points to 47.1 percent due to a higher proportion of lower-margin Retail revenues. Net earnings from continuing operations increased to $1.5 million from $1.2 million in the year-ago period. Including discontinued operations, they were up to $1.4 million from $1.2 million.

Topics