Fitness financials: Nautilus’ Q2 sales down 23.6 percent, plus IHRSA survey results, Johnson Health Tech, Nike
Nautilus narrowed its loss for the second quarter, but its sales were down, while IHRSA’s Monthly Trends Survey showed that U.S. health clubs improved their performance in May 2010 compared to May 2009, Johnson Health Tech’s Q2 sales on the rise, and Nike declared a quarterly dividend.
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Nautilus’ Q2 sales down 23.6 percent
Nautilus (NYSE: NLS) narrowed its loss for the second quarter, but its sales were down on lower revenue from its direct business segment.
For the quarter ended June 30, its net loss was $10.7 million, or $0.35 per share, compared to net loss of $20.8 million, or $0.68 per share, in the second quarter 2009.
The company’s net sales were down 23.6 percent to $30.6 million, compared with $40.1 million last year.
Sales for Nautilus’ direct business dropped — $18.4 million versus $28.2 million last year — primarily from a 40 percent year-over-year decrease in the rate of credit approvals by the company’s Tier 1 third-party consumer credit financing provider. Net sales in its retail business were up 4.1 percent to $11.8 million.
Edward Bramson, chairman and CEO of Nautilus, said in a statement, “While the second quarter is traditionally our softest sales period, our results were further impacted by the significantly reduced credit approval rates from our previous third-party consumer credit financing providers and by our decision to reduce advertising expenditures until the new credit programs through GE become available later in the year.”
Optimism reigns among health clubs, according to IHRSA monthly survey
U.S. health clubs improved their performance in May 2010 compared to May 2009, according to results from IHRSA’s Monthly Trends Survey — and nearly 90 percent of respondents are optimistic about future revenue.
Year-to-date total revenue, month-end total and non-dues revenue were about the same or better for most respondents, IHRSA reported. Total revenue year-to-date increased for 40.5 percent of respondents, while total month-end and non-dues revenue increased for 44.4 percent of participating clubs. Overall, the IHRSA Monthly Performance Index reached an index of 104.2, signaling an expansionary club market, it said.
Membership dues revenue was up for 37.8 percent of respondents in May 2010 relative to May 2009. Nearly four out of 10 (37.8 percent) club operators reported an increase in the number of accounts added, while one out of four (25.0 percent) respondents indicated an increase in the number of account dropped.
Member and non-member club visits were about the same or up for a majority of responding clubs (77.1 percent). Total number of tours were up for 34.3 percent of clubs and down for 42.9 percent of facilities.
Respondents said they are optimistic about the next few months of business. A majority said they have made capital expenditures for equipment over the last three months and plan to continue to reinvest in their clubs. Nearly nine out of 10 respondents — 89.2 percent — reported they anticipate consistent or improved revenues over the next three months.
The IHRSA Monthly Performance Index is calculated on four current monthly business conditions indicators: revenue, number of membership accounts, number of employees and capital expenditures on equipment, as well as three expectation indicators for the next three months: revenue, number of employees and capital
expenditures on equipment.
Johnson Health Tech’s Q2 sales on the rise
Johnson Health Tech, parent of Matrix Fitness, Vision Fitness and Horizon Fitness, said its second-quarter global sales were up 29 percent over the corresponding 2009 time period. In North America, sales for the second quarter improved by 26 percent.
“Much of our domestic growth can be attributed to a continued investment in sales support, marketing and product development,” said Nathan Pyles, president of Johnson Health Tech North America, in a statement.
In the commercial channel, the company said its sales increased by 65 percent over the previous year.
Nike declares quarterly dividend
Nike (NYSE: NKE) said its board of directors declared a quarterly cash dividend of $0.27 per share on the company’s outstanding Class A and Class B common stock. It is payable on Oct. 1 to shareholders of record on Sept. 7.
–Compiled by Wendy Geister
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