On the heels of launching a massive rebranding effort, Nautilus released an improved quarterly earnings report Tuesday.
The Vancouver-based fitness equipment manufacturer reported a net loss of $4.9 million, or 15 cents per diluted share, for its fiscal first quarter that ended June 30. That compares with a loss of $60.2 million, or $1.92 per diluted share, in the year prior. Net sales were $41.8 million in the quarter, compared with $54.8 million in the prior year.
The company announced at the end of July that it would relaunch its iconic BowFlex brand. The new brand images encompass more consumer emotions and motivations.
“The fitness industry is a sea of sameness,” said CEO Jim Barr in Tuesday’s call. “The new BowFlex brand is designed to stand apart.
“Our new brand identity is inclusive, empowering and inspiring, reflected outwardly in our visual system, like our imagery, emotive color selections and yes, a new logo,” Barr continued.
The executive said his team hopes the new branding will “empower consumers to move towards what matters most to them.”
Nautilus plans to offer new cardio products later this year. One is an updated version of the company’s popular C6 bike and another is a quieter version of the company’s Max Trainer interval training machine.
There are also plans to launch a new Schwinn elliptical trainer with a compact footprint.
Barr said demand seems good. The company sells many of its machines directly to consumers. Sales typically rise near the end of the year and peak in January. Sales to retailers peak a bit earlier, so the stores have products in stock for customers during those busy months.
The fitness equipment company is prioritizing its digital offerings on its JRNY app. The company reported 537,000 JRNY customers as of June 30. Of those, 150,000 were subscribers, a 17 percent increase over last year.
Barr said the company-wide rebranding is expected to be completed by the end of the year. The company sold its Nautilus brand in May, prompting a name change.
“This corporate rebranding initiative will reinforce our identity as a leader in the connected home fitness industry,” said Barr.
