Fitness financials: Cybex’s Q1 sales down 10 percent, plus Hanesbrands/Saucony, GSI Commerce

Cybex International reported a 10-percent decline in sales and a loss for the first quarter, Hanesbrands swung into the black for the first quarter, and GSI Commerce said it would redeem its 3 percent convertible notes due in 2025.

Cybex’s Q1 sales down 10 percent

Still hampered by slow sales in the fitness club market, Cybex International (Nasdaq: CYBI) reported a 10-percent decline in sales and a loss for the first quarter.

For the quarter ended March 27, net sales were $26.1 million compared to $28.9 million for the corresponding 2009 period.

The Company reported a net loss of about $753,000, or $0.04 per diluted share, compared to a net loss for the first quarter of 2009 of $1.4 million, or $0.08 per diluted share.

“Although purchases by the fitness club market continue to be slow,” said John Aglialoro, Cybex’s chairman and CEO, in a statement, “our sales and marketing efforts directed to new markets should generate incremental revenue in future quarters.”

The company said it’s also debuting a strength line for professional and college varsity sports teams during the second half of 2010.

Saucony parent swings into black for Q1

Hanesbrands (NYSE: HBI), parent of Saucony and Hind, swung into the black for the first quarter on increased sales and improved operating margin.

For the quarter ended April 3, the company’s net income was $36.5 million, or $0.37 per share, compared to a loss of $19.3 million, or $0.20 per share, in the same period last year.

Net sales increased by 8.2 percent to $927.8 million versus $857.8 million in the year-ago quarter, with every business segment except hosiery reporting sales growth.

The company said its retail shelf-space gains contributed 6 percentage points of sales growth, while 2 percentage points of growth was driven by increased retail sell through, retailer inventory restocking, and foreign currency exchange rates.

Based on the strong performance in the quarter, Hanesbrands has revised its 2010 net sales guidance to 6 percent to 8 percent growth. It also raised its 2010 EPS guidance to a range of $2.15 to $2.27.

GSI looks to redeem notes

GSI Commerce (Nasdaq: GSIC), a provider of e-commerce and interactive-marketing services, said it has called its 3 percent convertible notes due 2025 for redemption, although it expects holders of the notes will convert them before it can redeem them.

It will redeem the notes at a price equal to 100 percent of their principal value, plus the interest that has accrued, but has not been paid on them up to, but not including, the June 7 redemption date. The outstanding notes have an aggregate principal value of $57.5 million.

The company said holders of the notes could convert them into shares of GSI’s common stock at a rate of 56.1545 shares per $1,000 principal amount of notes, which is a conversion price of nearly $17.81 per share.

GSI expects all the notes will be converted because its stock is trading for more than $28 per share. The holders of the notes may convert them from May 1 until the close of business June 4.

--Compiled by Wendy Geister

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