Although saying it is not a response to the dismal financials Nautilus revealed earlier this month, the company has restructured itself into three business units it is calling "businesses" -- fitness equipment, international equipment and fitness apparel.
"It'll help us be sure supply and demand are in sync," said company spokesman Ron Arp. "We can't just think about it horizontally. We also must think about it vertically."
In the new structure, said to be in the works since last summer, Nautilus will be divided into three businesses that will operate under one leadership umbrella.
"We are improving our leadership structure to allow vertical teams to focus intently on specific business opportunities, while still achieving the benefits of collaboration and synergy where appropriate," Gregg Hammann, chairman and CEO of Nautilus, said in a statement.
The new business units are:
>> Fitness equipment, now led by Tim Hawkins, formerly chief customer and chief marketing officer. The division now accounts for 80 percent of company revenues and 85 percent of company employees. It will oversee equipment in the Americas, both commercial and retail. In addition, Mark Meussner was promoted to vice president of manufacturing, and Dustin Grosz was promoted to vice president of operations.
>> International equipment, now headed up by Darryl Thomas, who will re-locate to London. This business will look at all equipment and gear sales outside the Americas and will be the company's new direct report on international business in an effort to grow that area.
>> Fitness apparel, to be led by Juergen Eckmann, who previously served as chief of staff to Pearl Izumi USA before Nautilus acquired it in June 2005. Former Pearl Izumi President Jerry Edwards retired at the end of 2005. This business will continue work in Pearl's running and cycling area, as well as start development of high-end fitness apparel.
In addition to those businesses, Vancouver, Wash.-based, Nautilus will continue to work on education -- now through its Nautilus Institute led by Buzz Truitt -- and will continue to eye some aspect of nutrition to balance its package.
"These refinements will improve operating efficiency and completely align the supply and the demand sides of each business," Hammann said. "This helps assure all dimensions of our business are moving forward in lockstep and can adjust quickly to market demands."