Fitness financials: Cybex's Q3 sales drop, plus Iconix
Cybex reported declines in sales and profits for the third quarter, and Iconix Brand Group said it would pay $250,000 and post notices about its information collection practices under a settlement reached with the Federal Trade Commission.
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Cybex’s Q3 sales drop
Cybex (Nasdaq: CYBI) reported declines in both sales and profits for the third quarter, hurt by a sluggish health club market.
For the quarter ended Sept. 26, net sales were $29.0 million compared to $35.8 million for the corresponding 2008 period. Net income was $0.1 million, or $0.00 per diluted share, compared to $0.3 million, or $0.02 per diluted share, last year.
“During the past year, Cybex has focused on broadening into additional market segments as the health club market has remained stagnant,” said John Aglialoro, chairman and CEO, in a statement. “This has included not only new product positioning, but broader marketing and sales approaches which I believe will position Cybex well for 2010.”
During the quarter, the company also renegotiated its financial covenants with its banks. Cybex said it was in compliance with these financial covenants as of the end of the quarter, and expects to remain in compliance for the foreseeable future.
For the nine-month period, net sales decreased to $85.7 million compared to $108.7 million for 2008. Its loss was $3.4 million, or $0.20 per diluted share, compared to net income of $1.8 million, or $0.10 per diluted share, for 2008.
Iconix reaches settlement with FTC
Iconix Brand Group (Nasdaq: ICON) said it will pay $250,000 and post notices about its information collection practices under a settlement reached with the Federal Trade Commission. FItness EM licenses the Danskin brand name for fitness equipment from Iconix’s property, Triumph, formerly known as Danskin.
The FTC had said that the company didn’t comply with certain provisions of the Children’s Online Privacy Protection Act with online promotions it ran for brands in the fall of 2008.
Iconix said its non-compliance was inadvertent and did not harm children, but agreed to the settlement in order to avoid the time and expense of a protracted dispute with the FTC. As part of the settlement, the company did not admit any wrongdoing.
–Compiled by Wendy Geister
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