Nautilus reported a net profit of $1.6 million in the first quarter against a loss of $7.8 million in the same period a year ago. Sales increased by 5.8 percent to $48.3 million, with the direct-to-consumer business up by 24 percent to $30.3 million. Retail sales rose by 6.5 percent to $17.0 million. The gross margin declined to 45.7 percent from 50.3 percent a year ago, due to changes in product mix and higher freight costs, but operating expenses declined, partly due to more cost-efficient advertising.