An increase in bike and elliptical sales at retail helped Nautilus (NYSE:NLS) notch higher sales and a profit for the fourth quarter 2011.
The Vancouver, Wash.-based fitness equipment company reported sales up 11.7 percent to $60 million, while its quarterly income swung to a profit of $3.2 million, or 10 cents per diluted share, compared to a net loss of $39,000, or break-even per diluted share a year ago.
The figures include part of Nautilus’ discontinued commercial fitness operations. As previously reported by SNEWS, Med-Fit Systems acquired Nautilus-brand commercial in Februay 2010, and Michael Bruno's Core Fitness acquired assets of StairMaster and of Schwinn commercial in January 2010.
Minus those discontinued operations, Nautilus’ quarterly net income came in at $3.3 million, compared to $1.9 million a year ago.
Nautilus CEO Bruce Cazenave said the quarter’s positive results were spurred by higher sales in both of the company’s retail and direct channels. At retail, sales rose 10.8 percent to $26.5 million led by bikes and ellipticals. Direct sales rose 12.4 percent to $31.7 million led by the company’s TreadClimber products.
As trending in the industry, Nautilus’ cardio products continued to outperform the company’s home gym strength products, which continued to decline in sales and officials pulled back marketing dollars in the sector.
Overall, Nautilus officials said they pared back the company’s marketing spending (from 30 percent to 26.5 percent of net sales) as it strategically shifts to more online media advertising.
2011 proved to be a recovery year for Nautilus and its new CEO, Cazenave, who joined the company at midyear. For the full-year 2011, Nautilus reported revenue up 7.1 percent to $180.4 million plus a yearly profit (including discontinued operations) of $1.4 million versus a net loss of $22.8 million in 2010.
Investors cheered the company’s fourth-quarter results on Monday, sending the shares up more than 5 percent in after-hours trading to $2.79 per share