Vancouver fitness equipment company Nautilus plans to lay off 15 percent of its employees due to declining revenue, according to a company statement.
The company plans to save about $30 million annually beginning in its fiscal fourth quarter, which ends March 31, due to the layoffs and other cost-saving measures. In late 2021, Nautilus reported that it had 255 people working in Clark County, but it’s not clear how many are going to be affected by the layoffs.
Nautilus stated that there are “challenges in the retail market” causing declining revenue from the pandemic’s peak. The pandemic caused the company to grow significantly as people stayed home and sought personal fitness equipment to replace their gyms. Nautilus’ revenue and stock price spiked in 2021, but have slowly declined.
An August financial report stated a 70.3 percent net sales decline compared with 2021. Nautilus reported a net loss of $60.2 million in its first fiscal quarter of 2023 compared with a $13.9 million net income the previous year.
In September 2022, the company’s directors were considering selling the business, but no further announcements about a sale have been announced.
“Despite solid demand for our products as demonstrated in our direct segment, headwinds in retail re-orders persist as our retail partners continue to act conservatively in light of uncertainty in the economic environment,” Jim Barr, Nautilus chief executive officer, said in a statement.
“We are taking decisive actions to reduce our costs and realign our business with the short-term revenue outlook, positioning us to navigate these near-term challenges, enhance free cash flow, and drive long-term profitable growth,” Barr’s statement said.
Nautilus’ net sales were $98.1 million in the 2023 fiscal third quarter that ended Dec. 31. In the quarter ending Dec. 31, 2021, net sales were $147.3 million.
The company’s stock, traded as NLS on the New York Stock Exchange, closed at $1.74 Friday, down from a 52-week high of $5.63. The company’s shares traded as high as $24.51 in January 2021.