Tighter Credit, Slower Replenishment Takes Toll On Nautilus
Nautilus Inc. generated $189.3 million in sales during 2009, a one-third drop from the $283.7 million it recorded in 2008. The fitness products marketer recorded a net loss of $53.3 million, compared with a net loss of $90.5 million a year earlier.
Nautilus attributed its loss to a tighter credit approval environment in its direct business, as its high-ticket products are often sold to consumers on an installment basis. But its retail operations were hampered by stores’ reluctance to replenish inventory levels, according to the company.
For the year, its direct sales fell from $185.7 million in 2008 to $123 million in 2009 – a 33.7% drop. Retail sales were off 32.7%, falling from $94.5 million to $63.6 million.
“While our near-term performance will be influenced by trends in overall consumer spending and the availability of consumer credit, we believe that our team, our brands and our strategies have us well positioned for longer-term profitable growth,” chairman and CEO Edward Bramson said in a statement.
