Nautilus, Inc. Announces Preliminary First Quarter 2020 Sales Results

Nautilus, Inc. (NYSE: NLS) today reported preliminary first quarter 2020 sales results and offered a brief business update given the unprecedented environment related to the coronavirus disease 2019 (“COVID-19”).

First Quarter 2020 Preliminary Net Sales Results

Preliminary net sales for the first quarter of 2020 were approximately $94 million, up 11% versus the same quarter in 2019, the first time quarterly sales have grown year-over-year since Q3, 2018. This increase was driven by the power of the Bowflex and Schwinn brands, recent strategic and operational changes, disciplined execution, and a near-term trend toward home fitness.

Segment Sales

Direct Segment

• Preliminary Q1, 2020 net sales were approximately $47 million, up 1% compared to Q1 2019. This is the first quarter of year-over-year sales growth for the Direct segment since Q4, 2017. Top-selling direct-to-consumer items like the Bowflex SelectTech dumbbells and kettlebells and the Bowflex C6 and Schwinn IC4 bikes more than offset lower Max Trainer sales. Both the Bowflex C6 and Schwinn IC4 connected-fitness bikes have been popular with consumers since they were first introduced in October 2019.

Retail Segment

• Preliminary Q1, 2020 net sales were approximately $46 million, up 24% compared to Q1 2019. Strong sales of Bowflex and Schwinn home fitness products more than offset weaker performance in the Octane Fitness commercial line. Like the Direct segment, the Retail segment was boosted by strong demand for Bowflex SelectTech 552 adjustable weights and Schwinn IC4 connected-fitness bikes. Although numerous retailers have temporarily closed store locations due to COVID-19, Bowflex and Schwinn experienced strong year-over-year sales increases through retail partners’ ecommerce and curbside pick-up platforms.

In addition to meeting strong customer demand, Nautilus is focused on the health and welfare of its employees. Before government orders were in place in the jurisdictions where Nautilus conducts business, the Company implemented its work from home policies for most employees world-wide, while continuing to provide leading customer care for Direct and Retail customers. The Company’s distribution centers remain open for both receiving and shipping with strict guidelines on social distancing and worker health and safety protocols.