Nautilus, Vancouver, Washington, reported first quarter 2017 sales of $113.3 million, a 6.5 percent decrease year over year, according to financials released Monday.
This decrease was in line with previous guidance of $110 million to $112 million, Nautilus representatives said in their report. Direct segment sales dropped 8 percent to $74.7 million, and retail segment sales dropped 2.6 percent to $37.8 million. These decreases were attributed to lower TreadClimber sales and "the impact of certain customers rebalancing their inventory levels, coupled with some softness in the retail market," respectively, according to a release from Nautilus.
Nautilus also reported $12.7 million in operating income, versus $19.3 million last year. This was in line with expectations of $12.5 million to $14.7 million.
"First quarter 2017 revenue and operating income was in-line with our expectations," Nautilus CEO Bruce Cazenave said in a statement. "As anticipated, the first quarter presented a difficult comparison to prior year, but we are pleased that underlying factors such as Direct segment response rates continue to improve versus the back half of last year, and new product launches are tracking as planned, developments which together position us well for a strong second half of 2017."
Looking forward, Cazenave said that in the third quarter the company will launch new Octane Fitness products for the commercial club market: the Airdyne X and another Zero Runner (the ZR7000).
In addition, Nautilus will launch its newest Direct segment product, the Bowflex Hybrid Velocity Trainer while in its Retail segment, it will launch the Bowflex Cardio Performance series, which represent the company's first entries into higher price points on key retail cardio products.
“Based on these, and other planned new product introductions, as well as a more normalized media environment this year, we believe we are well positioned to return to double-digit growth in the back half of 2017," Cazenave said.