Nautilus, Inc (NYSE:NLS) issued strong sales forecast for the first quarter. The company reported it sees preliminary Q1 sales of $94 million.
The company, out of Vancouver, Washington, said preliminary Q1, 2020 direct segment 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 last October.
In the retail segment, 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.
The company says a fair number of its products are manufactured in China and most workers in the factories the Company utilizes have returned to work.
Further, ground transportation to the ports, and shipping capabilities from China are improving daily. Management is working closely with partners across its entire supply chain to improve production and delivery timelines and has expedited deliveries to the U.S. and Europe to meet increased customer demand.
NLS shares busted loose from the gate in Thursday’s first hour, gaining $1.09, or 45.4%, to $3.49.
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