Nautilus reports a 21 percent sales increase for the first quarter to $71.9 million, with gains of 19 percent in the Direct segment and 33 percent in the Retail segment. The gross margin improved slightly to 25.4 percent on sales of $20.1 million in the Retail segment, but most of the operating profits came from the Direct segment, where they rose by 54 percent to $10.4 million. Operating income from continuing operations went up by 50 percent to $9.0 million. Net income increased to $5.4 million from $5.2 million in the year-ago period including losses of almost $400,000 from discontinued operations for both periods.