Nautilus, the Vancouver-based manufacturer of fitness machines, said Monday it posted a second-quarter profit of $2.42 million. That compares with a profit of $557,000 in the April-to-June period of 2014.
The company sells its cardio, muscle-building and other fitness machines through its direct-to-consumer channel, involving TV, social media and other advertising, and through retail stores.
And in the second quarter — a time when outdoor activities usually trump indoor machines, putting a bit of a damper on Nautilus’ business — sales were robust across both of the company’s major channels. That was due mostly to the “successful development and marketing of new products,” Bruce Cazenave, CEO of Nautilus, said during the company’s earnings conference call.
The company’s direct-to-consumer route produced sales of $41.66 million. That’s up 28 percent from $32.35 million in the first quarter of 2014. Net sales from brick-and-mortar outlets were $17.40 million. That’s up 15 percent from $15.03 million during the same three-month period a year ago.
The company’s total net sales were $59.69 million in the three-month period ended June 30. That’s up 23 percent from $48.54 million in the year-ago period.
Bill McMahon, chief operating officer for Nautilus, said about 15 percent of the company’s online sales in the first half of this year were “completed on a mobile device” as opposed to a personal computer or laptop. The company’s “ability to penetrate mobile markets is a competitive advantage,” McMahon said, that the company will continue to explore and grow.
Nautilus also will roll out new products in the coming months, McMahon said, including new bikes and SelectTech dumbbells. The company’s continued investment in research and development “is fueling that pipeline” of new product launches, he said.
He said the company’s Bowflex Max Trainer — a home fitness machine combining the attributes of an elliptical machine and a stair-stepper — continues to receive high marks from consumers and to exceed the company’s growth expectations.
Nautilus, founded in 1986, employs about 340 people. The company’s stock, which trades as NLS on the New York Stock Exchange, closed down 25 cents Monday, at $20.88 per share. Nautilus’ shares have traded between $10.10 and $22.95 in the past 52 weeks.
