NLS - Nautilus pops with a better-than-expected sales forecast

2023-08-10 09:07:45 ET

Nautilus, Inc. ( NYSE: NLS ) jumped 9% before the open on Thursday after its forecast beat estimates.

Nautilus reiterated full-year fiscal 2024 guidance, expecting revenue to be in the range of $270M to $300M versus the $280.03M consensus, with the second half of the year representing 60% to 65% of full-year net revenue.

For the fiscal first quarter, GAAP EPS of -$0.15 beat the average analyst estimate by $0.29. Revenue of $41.75M missed by $3.13M. Net sales of $41.8M were down nearly 24% versus last year. The sales decline versus last year was driven primarily by lower customer demand.

“Driven by our operational and supply chain efforts and cost reduction actions, we made progress on our path back to profitability in the first quarter with significant improvement in gross margin and adjusted EBITDA loss,” Chief Executive Officer Jim Barr said in a statement.

“We also delivered our seventh consecutive quarter of sequential improvements in our inventory levels, solidified our liquidity position, and strengthened our balance sheet, providing us with the necessary financial flexibility to navigate the volatile retail environment while continuing to execute on our North Star Strategy.”

For the fiscal first quarter, Nautilus reported an operating loss was $10.5M compared to an operating loss of $51.2M last year, primarily driven by lower operating expenses and higher gross profit.

Peloton competitor

The company also touted its JRNY adaptive fitness program. As of June 30, members of JRNY reached 537,000, representing 48% growth versus the same quarter last year.

The JRNY app offers Motion Tracking for personalized coaching and feedback, automatic rep tracking, form guidance and adaptive weight targets.

The JRNY Mobile subscription is priced at $11.99 per month or $99 per year, and the All-Access subscription costs $19.99 per month or $149 per year.

NLS is down 54% in the past 12 months.

More on Nautilus:

• Nautilus, Inc. ( NLS ) Q1 2024 Earnings Call Transcript
• Nautilus GAAP EPS of -$0.15 beats by $0.29, revenue of $41.75M misses by $3.13M
• Nautilus launches $5M registered direct offering

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