Nautilus reported a jump in third-quarter 2013 sales compared a slump last year as retailers adjusted to higher prices.
Net sales for the Vancouver, Wash.-based fitness brand increased 22 percent in the third quarter to $46.3 million. The strong growth was attributed to higher quarertly wholesale orders, which spiked 70 percent to $19.4 million. Officials said the leap was due to last year's soft third quarter, when retailers advanced their orders into the second quarter in anticipation of price increases.
Smoothed out across the first nine months year to date, retail sales are up 6 percent, versus last year on higher strength and cardio sales.
Nautilus’ third-quarter direct-to-consumer business rose 3 percent to $25.7 million.
“Direct segment sales benefited from increased sales of the Company's new product, Bowflex UpperCut, as well as continued strong demand for cardio products, especially our Bowflex TreadClimber product line, partially offset by a decline in strength products,” officials said.
Overall, the company reported quarterly net profit up to $1.4 million, versus a net profit of $1 million during the third quarter a year ago. Nautilus ended the third quarter with $27.7 million in cash and no debt.
“Although overall consumer confidence and spending levels continue to present headwinds, we believe we have positioned ourselves well for this year's peak fitness season," Nautilus CEO Bruce M. Cazenave said in the Nov. earnings release.
Nautilus added to an all-around positive third quarter for fitness equipment manufacturers on Wall Street. Brunswick’s Life Fitness and Hammer Strength fitness segment reported sales up 9 percent, and Amer Sports’ Precor fitness division saw sales rise 3.7 percent during the quarter.