Brunswick Corp., Lake Forest, Illinois, reported $242.8 million in 2017 third quarter net sales for its Life Fitness Division, which includes Life Fitness and Cybex International, according to financial earnings released by the company on Oct. 26. This marks a 2 percent increase from $237.6 million during the same period last year.
Executives attributed the increase to the acquisition of Indoor Cycling Group in July 2016.
Life Fitness’ international sales decreased 1 percent after growing 17 percent in the second quarter and 11 percent in the first. International sales still accounted for 47 percent of Life Fitness' total sales during the period.
"In our Fitness segment, results trailed our expectations, as we experienced a more challenging global market environment which affected both sales volumes and margins," Brunswick Chairman and CEO Mark Schwabero said in a media release. "Despite these challenges, we continue to believe that the long-term fitness market fundamentals are solid and, given our emphasis on product leadership, operational excellence and technology development, we remain confident that we will be successful in the evolving fitness marketplace."
Life Fitness also reported $19.4 million in operating earnings, compared to $29.1 million year-over-year. This period's earnings included $6.8 million in restructuring, exit and integration charges. The decline resulted from "lower margins" and "more challenging competitive dynamics in certain international markets."
General sales for the quarter reflected "flat overall global market demand," according to the release, with strong value-oriented club sales being offset by soft traditional club sales.
"Despite unanticipated headwinds, 2017 is expected to be another year of strong revenue and earnings performance, along with excellent cash flow generation,” Schwabero said in the release. "We also plan for our Fitness segment to report fourth quarter sales growth consistent with third quarter growth."