Nautilus, Inc. (NYSE:NLS), which recently regained its compliance with New York Stock Exchange listing standards, reported both higher income and higher revenue overall for the first quarter of 2012, which ended March 31, but sales in the retail segment decreased slightly.
The Vancouver, Wash.-based fitness reported third quarter revenue up 6.1 percent to $51.3 million, compared to $48.3 million a year ago. However, net sales in the retail channel remained relatively flat at $16.6 million, down from $17 million a year ago.
Income from the company’s continuing operations, which includes its retail and direct businesses, was $2.6 million or 9 cents per diluted share, compared to $1.1 million, or 4 cents per diluted share, for the same period last year.
Officials explained the slight decrease in net sales on the retail segment was due to lower sales of certain strength products to brick-and-mortar locations, a decrease offset by the increase in sales of products to online-only retailers which is why the figure remained flat.
In the direct channel, net sales were $33.7 million in the first quarter of 2012, an increase of 11.5 percent from last year due to increased advertising effectiveness and higher consumer credit approval rates, which rose to 30 percent in the 2012 first quarter from 21 percent in 2011’s first quarter.
Overall, company officials said they are happy with the first quarter results.
"We are pleased with our start to fiscal 2012. The increased revenues and improved bottom line profitability are consistent with our stated priority of delivering sustainable and profitable growth,” said Nautilus CEO Bruce M. Cazenave in a news release.
Nautilus officials stated the increase in sales and revenue were due to success in sales of a number of products through the direct channel, higher gross margins and diligent management of operating expenses for all areas of the company. As SNEWS previously reported, Med-Fit Systems purchased Nautilus commercial division in 2010.
Plus, Cezanave said in the news release, the company pre-paid all amounts outstanding under senior notes issued in 2010 and ended the quarter with a strong balance sheet.