Fitness financials: Brunswick up, Nautilus down in 2Q
Second-quarter results are in and Nautilus is down while Brunswick Corp. (which owns Life Fitness and Hammer Strength) is up.
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The top fitness equipment brands traded on Wall Street reported divergent results for the second second quarter 2013. Nautilus was down while Amer Sports (makers of Precor) and Brunswick Corp. (Life Fitness and Hammer Strength) were up.
Nautilus (NYSE:NLS) had warned of the upcoming weakness. A focus on direct-to-consumer business over retail and a rise in prices led to a soft second quarter for the company, which reported net sales down 8.4 percent to $36.2 million versus $39.6 million a year ago.
“During the second quarter we continued to achieve growth in our direct business and made a couple of strategic investment decisions to build support for the back half of the year and support longer-term growth objectives,” Nautilus CEO Bruce M. Cazenave said in a news release. “As previously disclosed, we expected the second quarter for our retail business to be a challenge from a year-over-year comparison.”
Some of those investments included media spending to create a buzz around its direct products.
Net sales for the direct segment came in at $25.3 million last quarter, up 2.5 percent year-over-year. Some of the company’s direct-to-consumer products include the Treadclimber, CoreBody Reformer (photo, above) and the Bowflex UpperCut.
Net sales for the retail segment came in at $10.2 million, down 27.5 percent compared to the second quarter of 2012 when net sales were reported at $14 million.
Company officials said it’s in the process of developing a new line of cardio equipment for the retail segment, which it expects will boost business.
Brunswick Corp. (NYSE:BC), parent to Life Fitness and Hammer Strength, reported more positive figures. Thanks to continued gains in international fitness markets and growth to U.S. health club and hospitality customers, Brunswick Corp.’s (NYSE:BC) fitness segment reported sales up 5 percent from second quarter 2012 — from $143.3 million in 2012 to $150.8 million in 2013. Quarterly operating profit for the segment rose to $20.8 million versus $19.9 million a year ago. As with the past few quarters for Brunswick, international sales, which represent a total of 51 percent total fitness segment sales, increased 10 percent.
Brunswick Corp., which in addition to its fitness segment includes marine, boat and bowling and billiards segments., reported its overall second-quarter revenue up 4 percent to nearly $1.1 billion with a net profit of $80.4 million, a slight decline from a net profit of $83.6 million a year ago.
Amer Sports, owner of Precor, also reported stronger second-quarter results for its fitness segment — up 14 percent to EUR 64.3 million ($85.7 million).
“Growth occurred in all geographical regions, especially in Asia Pacific,” officials with the Finland-based company said. Commercial sales to clubs and institutions rose 21 percent, but less cheery for retailers, consumer sales for home use declined 8 percent.”
Amer Sports’ overall earnings, including its fitness, outdoor, ballsports and wintersports segments, rose 7 percent to EUR 377.2 million ($502 million).