Facing a tough retail market, BowFlex Inc. reported a continued net loss and a drop in sales in its latest quarterly financial report.
The Vancouver-based fitness equipment company reported a $12.5 million net loss, 35 cents per diluted share, in its second quarter, smaller than its $13.2 million loss in the second quarter of 2022.
Lower customer demand suppressed BowFlex’s second-quarter net sales to $48.7 million, down from $65.5 million for the same period a year earlier, the company reported.
That said, the company, formerly known as Nautilus Inc., reported an improvement in international sales, an increase in subscribers to its JRNY app and growth in strength equipment sales.
“Together, we hope that these bright spots are an indicator that we are nearing a return to broader enterprise growth,” said Jim Barr, president and CEO of BowFlex.
Historically, the fall and winter months are important for BowFlex. As people shop for the holidays and new year fitness goals, BowFlex sees its biggest sales.
“I hoped that we would have seen the consumer strengthen going into the holidays,” said Barr. Instead he has seen it weakening.
“Deals are important this holiday,” added Barr.
In fact, BowFlex’s leadership lowered its earning expectations for the fiscal year.
The company was notified in September that it’s at risk of being delisted from the New York Stock Exchange. Hundreds of companies are delisted from the country’s prominent stock markets each year. More than 370 have been delisted so far this year, according to StockAnalysis.com.
Delisted stocks often move to an over-the-counter market, which doesn’t have listing standards. But companies can and have been relisted onto a major market after being delisted.
Still, BowFlex has six months to get its stock into compliance with the New York Stock Exchange, meaning its stock needs to average over $1 per share.
BowFlex’s stock, which trades on the New York Stock Exchange as BFX, closed Tuesday at 77 cents per share, up from 70 cents per share at Monday’s closing.