Nautilus (NLS) Q2 misses across the board as the company was dealt with slowing sales and tough Y/Y comps in its retail business due to customers accelerating their normal buying pattern in anticipation of a price increase implement in Q3 last year.
Net earnings swung to a profit on an income tax benefit, masking over an 8.4% decline in total revenue.
Sales in the larger direct unit rose 2.5% to $25.3M, while sales in its retail business slipped 27% to $10.2M.
Gross margin widened to 47.8% from 43.4%, as lower overhead costs helped to mitigate the sales slump.
Shares -11.5% AH.