Nautilus Inc. (NYSE: NLS) reported higher revenue and swung to a profit in the first quarter as the company continues to shift its focus to cardio products.
The Vancouver, Wash.-based fitness equipment company reported first-quarter 2011 revenue at $48.3 million – up 5.8 percent from $45.6 million from the first quarter 2010.
Nautilus’ reported a net income of $1.6 million, or $0.05 per diluted share, for the first quarter, compared to a net loss of $7.8 million, or a loss of $0.25 per diluted share, during the same period a year ago. Those figures include the company’s discounted operations of its commercial business, which it sold.
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.
By channel, first-quarter direct sales rose 6.1 percent to $30.3 million, led by a 24-percent increase in the company’s Bowflex TreadClimber cardio product line. Sales of the Bowflex strength product line fell 19.3 percent as the company continues to shift focus to its cardio line. Cardio sales represented 69 percent of total sales in the first quarter, an increase from 59 percent of sales a year ago. Nautilus’ new consumer financing programs also helped sales, company officials said.
In the retail channel, sales rose 6.5 percent to $17 million led by sales of the company’s elliptical machines and SelectTech products. Increased Internet sales also helped the retail channel, company officials said.
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