Apparel Consumers Have Moved to a Mode of Recreation

Port Washington, NY, May 28, 2020 – U.S. apparel dollar sales in the last week of April were 35% lower than the same week in 2019, but that is half what it was at the lowest point during the pandemic. Shifts in apparel purchase behavior have occurred across both categories and wearer segments since the start of the pandemic, pointing to important changes in consumer buying phases, reports The NPD Group.

“Apparel was a low priority early in the COVID-19 crisis when consumers were focused on things like groceries and other in-home necessities, but we’re seeing evidence that apparel is once again entering the spending consideration set,” saidMaria Rugolo, apparel industry analyst at The NPD Group. “Warmer weather is spanning much of the country, allowing consumers to extend their mostly homebound routines to the outdoors, and expanding their apparel needs beyond comfort and above-the-keyboard dressing.”

Summer seasonal apparel categories, shorts and swimwear, recently captured nearly one-fifth of total apparel spending, which is more spending share for this category than the same time last year. In the first week of March 2020, sales of these categories were proportional to the same week in 2019. By week ending May 2, 2020, while summer seasonal apparel sales were still down compared to last year, declines softened significantly and their dollar share of the overall market was 5 points higher than the same week in 2019.

In addition to recent growth in summer seasonal categories, steadily rising sales of many basic apparel categories, like underwear and sleepwear, are offsetting the steep dollar sales declines in tailored clothing since the pandemic surfaced in the U.S. As a result, basic apparel is also capturing a larger portion of the challenged apparel market, 25% of sales in the last week of April compared to 17% last year.

The demographics of apparel consumers have also demonstrated a shift in shopping motivation. As a whole, clothing for kids has consistently seen the softest double-digit dollar declines of all wearer segments, resulting in the youth segment capturing a higher share of total apparel dollar sales since the start of the pandemic. Following weeks of year-over-year declines, dollar sales of kids’ apparel in the last week of April reached year-ago levels. Women’s apparel also began to see a softening in spending declines during the second half of April.

“Needs and behaviors will continue to shift with each phase of the country’s reopening and crisis recovery, but it is encouraging to see the consumer demonstrating an interest in adding to their wardrobe,” added Rugolo. “Tapping into this interest with a focus on needs and an underlying yearning for normalcy will be central to capturing apparel sales along the uncertain road that lies ahead.”

Source: The NPD Group/Retail Tracking Service

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About The NPD Group, Inc.

NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2,000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar and e-commerce. We have offices in 27 cities worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, video games, and watches. For more information, visit npd.com. Follow us on Twitter: @npdgroup.

Contact:

Janine Marshall    

(516) 625 2356

[email protected]

Twitter: @npdretail

Saving summer vacation, with social distancing in mind!

Sales data around camping equipment, U.S. travel books/maps/road atlases and gas prices suggest the environment is ripe for road trips this year, as national parks and other parts of the country begin to reopen, and air travel restrictions and concerns remain. 

Here are some stats:

·        Camping equipment sales reached a turning point in April and ramped up in the last two weeks of the month. In the two weeks ending May 2, dollar sales grew for recreation tents(+30%), hammocks (+103%), camp sets (+119%), and campfire equipment (+42%), as well as grills (+74%), smokers (+94%), and fuel (+23%). Also seeing growth were accessories such as portable power kits(+87%), bike trailers/joggers(+133%), and hanging hitch racks (+51%). Source: The NPD Group/ U.S. Weekly Retail Tracking Service

·        Tools to equip the RV also saw increases in the latter half of April, including utensils (+36%), pots and pans (+22%), and camp toiletries (+24%). Source: The NPD Group/ U.S. Weekly Retail Tracking Service 

·        U.S. travel book salesincreased 77% in the four weeks ending May 16. By region, travel books for the Western U.S.states were the most sought after, growing 108%. (Based on unit sales) 

·        Unit sales for maps and road atlases grew 106%. Sales of parks and campground booksalso rebounded, growing 123%. More about the travel book trend can be found here. 

·        At the fuel pump, the average price per gallon has declined 30 cents since January, and price as a reason for purchasehas increased year-to-date through April, according to NPD’s Motor Fuels Index.

“Cabin fever has set in big time, as the lockdown and work-from-home lifestyle continues to be followed by much of the nation. Families are looking for a safe escape to save their summer vacation. As a result, there’s an uptick in consumers gearing up for outdoor activities and road trips, whether local or more long distance,” said Matt Powell, NPD’s sports industry advisor. “NPD data from other industries shows sales increases for U.S. travel books, maps and atlases, and outdoor toys. There’s a sweeping trend at play here; from the backyard to the campground, consumers are seeking refuge in the outdoors.”

For more information, reach out to me at [email protected] or 516-625-2203. Happy to provide more insights or connect you with our industry analyst/s.

New, branded face coverings from Life Fitness are now available to purchase online with sales benefitting No Kid Hungry

ROSEMONT, Ill., May 19, 2020 /PRNewswire/ — Life Fitness, the global leader in commercial fitness equipment, announced today a new initiative to produce non-medical, reusable face coverings in its global manufacturing plants. The Life Fitness branded face coverings are available to purchase in packs of 25 on the company’s website. For every pack of 25 sold through June 18, 2020, Life Fitness will donate $1.00 per face covering to No Kid Hungry in the United States to help provide children with meals they need during school closures.

Life Fitness face coverings come at a critical time, as conversations on how to safely reopen businesses become more prominent, particularly as they relate to facilities like gyms. As fitness facility owners consider best practices for reopening, many are looking to provide face coverings to their staff and exercisers to ensure proper safety measures and align with local directives.

“Our mission to inspire healthier lives extends far beyond physical fitness. We are proud to offer reusable face coverings to support the health of our customers and, more importantly, to give back to our communities,” said Chris Clawson, CEO of Life Fitness. “Today, inspiring healthier lives also means helping to supply meals to children and families. The important work that No Kid Hungry is doing to end childhood hunger has inspired us, and we hope they can likewise inspire others to join us by giving back to those who need it most.”

With nearly all schools closed nationwide, millions of children are losing the meals they depend on every day. As part of its relief efforts, No Kid Hungry, a national campaign focused on ending childhood hunger in America, is providing emergency grants to schools, food banks and community groups to help children in need. 

This initiative comes on the heels of Life Fitness’ previous COVID-19 response. On March 30, two Life Fitness employees in Owatonna, Minnesota volunteered to sew face coverings out of the plant’s upholstery department to donate to local healthcare workers. This initiative expanded to additional Life Fitness plants in the U.S. (Ramsey, Minnesota and Falmouth, Kentucky), and internationally in Kiskőrös, Hungary. Collectively, Life Fitness has produced over 10,000 face coverings for healthcare workers, communities, and its employees and plans to manufacture tens of thousands more across its global manufacturing footprint.

The reusable face coverings will be produced in Life Fitness plants in Minnesota, Kentucky and Hungary. Life Fitness face coverings are non-medical grade and are not approved for use in medical settings by the FDA or other regulatory agencies.

About Life Fitness
Life Fitness is the global leader in commercial fitness equipment and game tables and furnishings. The company manufactures and sells its strength and cardiovascular equipment, billiards tables and accessories, and game room furniture under the brand names Life Fitness, Hammer Strength, Cybex, Indoor Cycling Group, SCIFIT and Brunswick Billiards. Its equipment is distributed to 166 countries. Life Fitness is headquartered outside Chicago, in Rosemont, Illinois. For more information about Life Fitness products and services, visit www.lifefitness.com.

About No Kid Hungry
No child should go hungry in America. But millions don’t know where their next meal is coming from. No Kid Hungry is ending childhood hunger by helping launch and improve programs that give all kids the healthy food they need to thrive. This is a problem we know how to solve. No Kid Hungry is a campaign by Share Our Strength, an organization working to end hunger and poverty. Learn more at NoKidHungry.org.

Dana Andreoli                                                                            
T: +1-847-288-3366        
E: [email protected]

SOURCE Life Fitness

I often think about how cycling is positioned to the public. Images of sweaty, anguished riders with no body fat abound in cycling magazines, on television, and in broad-reach periodicals. It has become rare to see a story showcasing the simplicity of the activity – that is, until now. 

As the impact of COVID-19 began to show in the U.S., these more hardcore images are increasingly being replaced by a new reality of families riding together, and everyday health and fitness enthusiasts riding their bikes indoors. This new reality has brought impressive growth to the cycling market, which increased its sales by 31% to $1.3 billion in the first quarter of the year. More than half of those sales dollars came in March as consumers sought stay-at-home fitness options and families reinventing recess due to school closures turned to cycling as a viable choice to satisfy entertainment and fitness needs.*

Several categories had unprecedented sales increases in March. Within bicycles, electric and gravel bikes continued on their growth trajectory—+85% and +20%, respectively, in March—while others that have traditionally seen flat or declining sales are seeing new opportunity. The latter includes children’s (+59% in March), adult lifestyle (+121%), transit/fitness (+66%), and front suspension mountain bikes (+55%). In addition, trailers and trail-a-bikes showed strong growth, up 77% in March.*

Two other trends worth mentioning are the growth of trainers/rollers and stationary bikes which, I suspect, are both largely due to the need for people to find new stay-at-home fitness options. Trainers/rollers grew sales by over 250% in March and stationary bikes were up 171%.*

All of this growth generates an opportunity for cycling retailers and manufacturers: how to embrace a new group of customers expressing interest in cycling. I suggest the industry pay attention to two critical lessons we’ve learned recently: 1) the power of family cycling being an approachable, healthy, and safe activity, and 2) consumer willingness to invest in indoor bikes and cycling options for fitness.

To attract and retain families, it’s time the industry look at short-term improvements in the way it works with non-athlete cyclists to maintain enthusiasm. While I support conversations on how to make streets safer for cyclists, I suggest the industry also examine more basic and immediately controllable aspects of the ways it positions cycling to families, looking at retail merchandising to start. For independent bike shops, in-store messaging should focus on family. Family and trail-a-bikes should be placed in the front of the store and offerings shouldn’t be marginalized. Sales staff should be encouraged and trained to help with the basic questions a new family might ask about cycling, and encourage sales for this important segment.   

For broader retailers in the rest of the market, I would look long and hard at how bikes are initially built to assure that the first ride experience on a bike from a major retailer is a positive one. I would also determine how to merchandise bikes in a way that encourages interest. While I understand the need to assure profitability for every square inch of floor space, stacking bikes three rows high creates a new set of problems that retailers need to answer.

For both the independent dealers and large merchants, now may be the time to examine pricing to encourage both margin and approachability, so that more consumers feel comfortable buying and retailers can thrive.

The industry must also retain momentum in the popularity of indoor cycling as a fitness activity. Transactional estimates collected by NPD’s Innovation Lab show that gyms and fitness centers have been one of the most hard hit service categories in the economy; revenues have declined every week since the beginning of the crisis in the U.S., and are now down by more than 90%.** The COVID-19 crisis has altered the way we can work out today, and may be able—or want—to exercise in the future.  

Cycling retailers and manufacturers stand to benefit from the at-home fitness trend, but they also face a more competitive landscape with companies such as Peloton, whose sales have grown more than 2X each week since stay-at-home orders went into effect in mid-March.** Simple merchandising changes will help, which includes making cycling shops destinations to try and buy stationary bikes, trainers, and applications such as Zwift. Cycling retailers also have an advantage of service that should benefit consumers seeking a cycling style fitness workout.

The new reality that we’re all faced with has brought many challenges along with it, but has also opened doors for opportunity in certain markets including cycling. More people are likely riding bikes today than in years past, and there’s no reason why this new culture shouldn’t persevere.   

*Source: The NPD Group/ U.S. Retail Tracking Service/ January-March 2020 vs. 2019; March 2020 vs. 2019 (Total cycling market figures also include stationary bikes)

**Source: The NPD Group/ Innovation Lab

For more information or to speak with Dirk, contact me at [email protected]


About The NPD Group, Inc.
NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2,000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar and e-commerce. We have offices in 27 cities worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, video games, and watches. For more information, visit npd.com. Follow us on Twitter: @npd_sports.

American’s Baseball Tournament Destination in Branson, MO “Signs” A New General Manager  

(Branson, MO) May 15, 2020 – Ballparks of America is a 70-acre world-class baseball destination for players 9-14 years old which attracts thousands of visitors annually to its home city of Branson, MO. Following an ownership shift earlier this year, the Ballparks of America team is preparing to bring in the first wave of teams for an exceptional 2020 summer baseball season. 

The Ballparks of America facility is operated by Sports Facilities Management (SFM), who has been leading preparations and gearing up for the first tournament of the summer. Those preparations include putting in additional cleaning, social distancing, and potential screening policies and safety procedures to protect players, visitors, and employees.

Among other preparations, the team secured a “big league” hire this week: Scott Bailes. With his wealth of knowledge and reputation in the baseball world, SFM believes Bailes to be a great fit at Ballparks of America. Bailes started in the 1986 season with the Cleveland Indians, and his major league career spanned nearly ten seasons, with stops in Cleveland, California and Texas. Upon retirement, he founded Sports World, an indoor sports training facility while serving a four year term as a city councilman and serving on the Springfield-Greene County Park Board. Bailes worked with the Cardinals organization for eight seasons as Director of Development and continues today as the color commentator on all television broadcasts. 

“With Scott Bailes’ background we knew he would be a great fit,” says Lori Moore, Account Executive of SFM. “He has had a tremendous influence in his various roles not only as a professional baseball player, but also as a facility operator, entrepreneur, and public servant. He is a great addition to the SFM team and as General Manager will be a great asset for Ballparks of America.”

Bailes is coming on board just in time to help kick off the 2020 baseball season in the Ozarks, and he will be a part of an extended season.  Ballparks recently announced new events in August and September as a direct result of the delayed start to the baseball season and increased customer demand. The Ballparks team is currently registering teams for the remaining slots in those tournaments. Because of their market influence as a national sports destination, Ballparks of America is also positioned to be a leader in the post-Covid recovery and rebound for Branson, bringing in new and repeat visitors to one of America’s favorite family destinations.

“I am honored to work for SFM and to join the Ballparks team,” says Bailes of his new position. “I look forward to bringing my expertise and leadership to the complex so we can offer visitors an exceptional experience on the field and off. Our team at Ballparks of America looks forward to bringing back baseball and are expecting a great season.”

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Located in Branson, Missouri, Ballparks of America is an international baseball tournament destination. Our signature features are our on campus stay and play suites and our two-thirds scale replicas of 5 classic American ballparks, complete with the dimensions and elements that make each of these iconic stadiums unique. Ballparks of America is a member of the SFM Network, the nation’s largest and fastest growing network of sports facilities and is operated by the industry-leader in outsourced operations, Sports Facilities Management. Learn more or register for your next tournament: www.ballparksofamerica.com.

Scott Bailes hired by The Sports Facilities Management to oversee day-to-day operations at American’s Baseball Tournament Destination in Branson, MO

(Branson, MO) May 15, 2020 – With the first summer tournament only a few weeks away, the Ballparks of America staff is now ready to bring in teams for an exceptional 2020 season. After a national talent search, the four owners who oversee the project in partnership with Sports Facilities Management (SFM), have selected Scott Bailes as General Manager for the sports complex.

Upon high school graduation Bailes attended Missouri State University on a baseball scholarship. Later drafted by the Pittsburgh Pirates to play professional baseball in 1982 and after a trade in 1985 to the Cleveland Indians, Bailes started the 1986 season with the major league team. His major league career spanned nearly ten seasons, with stops in Cleveland, California and Texas. Upon retirement he founded Sports World, an indoor sports training facility while serving a four year term as a city councilman and currently serves on the Springfield-Greene County Parkboard.

Bailes worked with the Cardinals organization for eight seasons as Director of Development and continues today as the color commentator on all television broadcasts. In addition, Bailes serves as part owner of the locally famous Ebbets Field bar and restaurant. With his wealth of knowledge and reputation in the baseball world, SFM believes Bailes to be the perfect fit at Ballparks of America.

“Scott Bailes has a background in the major leagues and we knew he would be a great fit,” says Lori Moore, Account Executive of SFM. “We have seen his influence in his various roles not only as a professional baseball player but also after his retirement. We have no doubt he will exceed expectations as the General Manager of Ballparks of America.”

In regards to the opportunity to work for Ballparks of America, Bailes adds, “I am honored to work for SFM and to join the Ballparks team. I look forward to bringing my expertise to the complex and offering visitors to this national beacon an exceptional experience in baseball.”

As an SFM-managed property, Ballparks of America joins the SFM Network, the industry’s largest and fastest growing network of sports tourism properties in the U.S. The SFM Network hosts more than 25 million guests visits each year across associated venues and is forecast to produce more than $1 billion in economic impact in the next five years.

 For more information about the weeklong Ballpark of America experience, to review availability, or register for a tournament; visit https://www.ballparksofamerica.com.

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Located in Branson, Missouri, Ballparks of America is an international baseball tournament destination. Our signature features are our on campus stay and play suites and our two-thirds scale replicas of 5 classic American ballparks, complete with the dimensions and elements that make each of these iconic stadiums unique. The latest technology in synthetic turf provides the most consistent playing surface throughout the summer season, complete with covered dugouts, bullpen areas, Musco lighting and stadium-style seating at various fields for an MLB experience. Learn more or register for your next tournament: www.ballparksofamerica.com

May 05, 2020 04:05 PM Eastern Daylight Time

VANCOUVER, Wash.–(BUSINESS WIRE)–Nautilus, Inc. (NYSE: NLS) today reported its unaudited operating results for the first quarter of 2020.

Management Comments

“In the first quarter of 2020, we achieved stronger than expected financial results, including revenue growth of 11%, our first positive sales comp since third quarter of 2018, and significantly exceeded our EBITDA estimates,” said Jim Barr, Nautilus Inc. Chief Executive Officer. “The continued momentum of our new connected fitness products and technology, as well as the strategic and operational changes instituted in the latter half of 2019 put us on track to deliver year-over-year improvement. However, when COVID-19 pandemic stay-at-home orders hit the last few weeks of the quarter, it was the agility and strong execution of the team that allowed us to maximize the opportunity provided by the surge in demand for at-home fitness products. It was rewarding to see the power of our brands, strength of our product portfolio, and reach of our omnichannel model in action when our customers needed us most. We delivered strong results across many of our brands including our Bowflex® and Schwinn® lines, in both strength and cardio products.”

“As we enter the second quarter and prepare for the remainder of 2020, we know we will be navigating a rapidly changing environment. We experienced the ripple effects of the supply chain disruption caused by COVID-19 early in the first quarter and then experienced a strong spike in demand across the product portfolio as the virus hit world-wide. Although we’ve expanded production in response to continued strong demand, we carry over a significant level of back-orders into the second quarter and believe we may not be fully caught up until the beginning of the third quarter. Additionally, while the consumer side of our business is surging, the commercial side, represented by our Octane Fitness brand, is experiencing softness, as gym closures have resulted in sales declines. Lastly, like many companies, we are closely monitoring the longer-term impact the shelter-in-place orders are having on consumer sentiment and demand.”

Mr. Barr continued, “I want to thank our dedicated employees and partners for how they’ve responded to the demands of the COVID-19 pandemic, rapidly changing our work model to remote work, dealing with disruptions in their lives, but still remaining focused on solutions to meet our customers’ needs. While delivering for customers in the short-term, our team is also balancing focus on longer-term challenges. It is important to remember that we are early in the long-term transformation of our company. We are actively gaining insights and continue to address the underlying issues that caused our multi-year revenue decline. While we believe we are making strong quarter-to-quarter progress, it is possible we will not yet produce consistent linear quarterly improvements, especially considering the array of uncertain outcomes from the longer-term impact of COVID-19. However, we believe that the company’s resolve, resilience, and agility are qualities that, when coupled with well-known brands and a strong product portfolio, will allow us to successfully implement the strategies that will return Nautilus to long-term profitable growth.”

First Quarter 2020 Segment Results Compared to First Quarter 2019

Direct Segment

Retail Segment

Tax Rate

Balance Sheet

As of March 31, 2020:

Conference Call

Nautilus will discuss first quarter 2020 operating results during a live conference call and webcast on Tuesday, May 5, 2020 at 1:30 p.m. Pacific Time. The conference call can be accessed by calling (877) 425-9470 in North America. International callers may dial (201) 389-0878. Please note that there will be presentation slides accompanying the earnings call. The slides will be displayed live on the webcast and will be available to download via the webcast player or at http://www.nautilusinc.com/events. The webcast will be archived online within two hours after completion of the call and will be available for six months. Participants from the Company will include Jim Barr, Chief Executive Officer, Aina Konold, Chief Financial Officer and Bill McMahon, Special Assistant to the CEO.

A telephonic playback will be available from 4:30 p.m. PT, May 5, 2020 through 8:59 p.m. PT, May 19, 2020. Participants can dial (844) 512-2921 in North America and international participants can dial (412) 317-6671 to hear the playback. The passcode for the playback is 13701186.

Non-GAAP Presentation

In addition to disclosing its financial results determined in accordance with GAAP, Nautilus has presented in this release certain non-GAAP financial measures, which exclude the impact of certain items (as further described below) and provide supplemental information regarding operating performance. Nautilus presents non-GAAP financial measures as a complement to results provided in accordance with GAAP, and the non-GAAP financial measures should not be regarded as a substitute for GAAP. By disclosing these non-GAAP financial measures, management intends to provide investors with a supplemental comparison of operating results and trends for the periods presented. Management believes these measures are also useful to investors as such measures allow investors to evaluate performance using the same metrics that management uses to evaluate past performance and prospects for future performance. Nautilus strongly encourages you to review all its financial statements and publicly filed reports in their entirety and to not rely on any single financial measure.

For a quantitative reconciliation of our non-GAAP financial measures to the most comparable GAAP measures, see “Reconciliation of Non-GAAP Financial Measures” included with this release.

EBITDA from Continuing Operations

Nautilus defines EBITDA from continuing operations as its income from continuing operations, adjusted to exclude interest expense (income), income tax expense (benefit) of continuing operations, and depreciation and amortization expense. Nautilus uses EBITDA from continuing operations in evaluating its operating results and for financial and operational decision-making purposes such as budgeting and establishing operational goals. Nautilus believes that EBITDA from continuing operations helps identify underlying trends in its business that could otherwise be masked by the effect of the items that are excluded from EBITDA from continuing operations and enhances the overall understanding of the Company’s past performance and future prospects. Management believes that EBITDA is frequently used by investors, securities analysts and other interested parties in their evaluation of companies, many of which present EBITDA when reporting their results. Other companies may calculate EBITDA differently, and it may not be comparable.

About Nautilus, Inc.

Headquartered in Vancouver, Washington, Nautilus, Inc. (NYSE: NLS) is a global technology driven fitness solutions company that believes everyone deserves a fit and healthy life. With a brand portfolio including Bowflex ®, Nautilus®, Octane Fitness® and Schwinn ®, Nautilus, Inc. develops innovative products to support healthy living through direct and retail channels as well as in commercial channels. Nautilus, Inc. uses the investor relations page of its website (www.nautilusinc.com/investors) to make information available to its investors and the market.

SAN FRANCISCO, April 27, 2020 — Tonal, the world’s most intelligent home gym and personal trainer, today announced it is partnering with Theragun, the leader in percussive therapy. In addition to Theragun being available for purchase on Tonal.com starting in May and at select retail locations, Tonal is kicking off the partnership with an exclusive Mother’s Day offer that includes a Theragun G3 with Tonal purchases made before May 10th (while supplies last). 

“We are very excited to be partnering with Theragun to help our customers discover the importance of recovery in building strength, which directly supports our goal of helping people be their strongest,” said Chris Stadler, CMO of Tonal. “There is also a natural brand synergy and similar core users, particularly fitness enthusiasts, strength trainers, and professional athletes looking to improve their performance, well being, and longevity.” 

“Theragun University will be providing Tonal the educational content for its customers to use Theragun’s percussive therapy devices before, during, and after workouts; giving us the opportunity to promote complete whole-body wellness,” said Founder and Chief Wellness Officer of Theragun, Dr. Jason Wersland. “At Theragun, we prioritize education over anything and this partnership will not only showcase Tonal users how to properly utilize our products to the maximum potential, but also optimize the benefits in their everyday lives.”

Tonal is partnering with Theragun to bring customers the best at-home workout and recovery experience possible. Tonal is an all-in-one home gym that replaces dozens of traditional weight machines for a complete workout from home, and Theragun offers industry-leading percussive therapy for whole body healing, tension relief, recovery and performance enhancement. Bringing Tonal and Theragun together is the ultimate way to train and recover strong. 

Additionally, all Tonal coaches will be trained by Theragun University to create customized recovery routines integrating Theragun’s percussive therapy devices into the overall Tonal experience. With master trainers in over 12 countries, Theragun University delivers certification courses in-person and through digital online classes. To date, Theragun has trained more than 1,000 professionals worldwide in live certification courses. 

Theragun will be available for purchase on Tonal.com starting in May and at select retail locations, and future Theragun offers and recovery content will be available for existing Tonal members. In celebration of Mother’s Day, Tonal is offering a Theragun G3 ($399 value) with Tonal purchases until May 10th or while supplies last. Orders must be placed by midnight on May 3rd in order to receive the Theragun in time for Mother’s Day. More details can be found here.   

About Tonal. 

Tonal is the world’s most intelligent home gym and the first truly personalized approach to strength training. Tonal enables people to lead healthier lives by providing them with the equipment, technology, and guidance to effectively reach their fitness goals. Combining a cutting-edge, all-in-one design and personalized virtual coaching, it’s like having an entire gym and personal trainer, on demand, in the convenience of your home. Led by Aly Orady, a supercomputer engineer, the company makes strength training accessible to all. Tonal is backed by leading venture capital firms and investors in health and fitness. The company is headquartered in San Francisco, California. 

About Theragun 

Theragun, Inc. is a leading health and wellness company rooted in science and technology, helping people feel their best every day, naturally. Building on over a decade of research and development, Theragun’s portfolio of proprietary state-of-the-art products and services were created to effectively reduce tension, accelerate recovery, and improve whole-body wellness. Today, Theragun products are trusted by over 250 professional sports teams worldwide, physical therapists, trainers, chiropractors, celebrities, athletes, and everyday people in over 50 countries. Visitwww.theragun.com for the latest news and information about Theragun. Follow the brand on social media viaInstagram, Facebook, and Twitter.

Nautilus, Inc. Announces Preliminary First Quarter 2020 Sales Results

First Quarter 2020 Sales Increase by Approximately 11%, Driven by Strength of Bowflex and Schwinn Brands

Retail Segment Delivers Strong Sales Growth and Direct Segment Breaks Negative Streak

Company Raises First Quarter 2020 Guidance

VANCOUVER, Wash.–(BUSINESS WIRE)–Apr. 8, 2020– Nautilus, Inc. (NYSE: NLS) today reported preliminary first quarter 2020 sales results and offered a brief business update given the unprecedented environment related to the coronavirus disease 2019 (“COVID-19”).

First Quarter 2020 Preliminary Net Sales Results

Preliminary net sales for the first quarter of 2020 were approximately $94 million, up 11% versus the same quarter in 2019, the first time quarterly sales have grown year-over-year since Q3, 2018. This increase was driven by the power of the Bowflex and Schwinn brands, recent strategic and operational changes, disciplined execution, and a near-term trend toward home fitness.

Segment Sales

Direct Segment

·        Preliminary Q1, 2020 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 in October 2019.

Retail Segment

·        Preliminary Q1, 2020 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.

In addition to meeting strong customer demand, Nautilus is focused on the health and welfare of its employees. Before government orders were in place in the jurisdictions where Nautilus conducts business, the Company implemented its work from home policies for most employees world-wide, while continuing to provide leading customer care for Direct and Retail customers. The Company’s distribution centers remain open for both receiving and shipping with strict guidelines on social distancing and worker health and safety protocols.

Manufacturing and Supply Chain

A significant volume of Nautilus products is 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.

Management Comments

Jim Barr, Chief Executive Officer of Nautilus Inc., noted, “The power of our trusted brands, quality products, and strong execution in sales, marketing, and supply chain fueled significant growth and strong results in Q1. COVID-19 has created a heightened need for home-fitness products and our company was able to meet customer demand well, through both the Direct and Retail segments. We reversed five quarters of year-over-year sales declines and delivered sales growth of 11% in Q1, 2020 as customers gravitated to key products like the Bowflex SelectTech dumbbells, Bowflex C6 bike, and the Schwinn IC4 bike. Demand for many of our home-fitness products continues to outpace supply and we are pulling all levers to accelerate the manufacturing and delivery of key products. Our better than expected EBITDA is the result, in part, of the strategic and operational improvements we’ve made recently, combined with a dedicated and engaged employee base focused on consistent execution.

While these short-term results have exceeded expectations, it is prudent to realize the coming quarters may present added challenges for all businesses as we better understand the longer-term impacts of COVID-19. Short-term, it may remain a significant challenge to fully match the unplanned surge in demand with supply. Looking to the long term, like many companies, we will be evaluating the potential impact and duration of the pandemic on the overall macro-economic environment.”

Mr. Barr continued, “Our management team is very proud of our employees and how they faced this current adversity. We rapidly and profoundly changed our historical working model, well ahead of government mandates, and have created new solutions to ensure we are meeting our customers’ enhanced needs. Our supply chain and front-line customer care teams have been handling holiday-level volumes with very little time to prepare. I want to thank our employees and partners for their amazing efforts and for coming together as a team for our customers. We believe this challenge has brought out the best in our company, further demonstrating our resolve, resilience, and agility, qualities that make us stronger, and will serve us well in our efforts to return to long-term profitable growth.”

Raising First Quarter 2020 Guidance

The Company now expects EBITDA from continuing operations to be in the range of $0.0 million to positive $1.5 million. This information is preliminary and based upon information available as of the date of this release. While preliminary Q1 results have exceeded expectations, it is prudent to realize the coming quarters may present added challenges for Nautilus and other businesses as the longer-term impacts of COVID-19 are highly uncertain and cannot be predicted with confidence.

The Company does not plan to release preliminary financial information on an ongoing basis.

Liquidity

As of March 31, 2020, the Company had cash and cash equivalents of $26.5 million and debt of $28.0 million, compared to cash and cash equivalents of $11.1 million and debt of $14.1 million as of December 31, 2019. The Company had $19.3 million available for borrowing on its line of credit as of March 31, 2020.

The amounts and financial results described in this press release reflect the Company’s estimates based solely upon information available to it as of the date of this press release, which are not a comprehensive statement of its financial results or position as of March 31, 2020, and have not been reviewed or compiled by the Company’s independent registered public accounting firm. The actual amounts that the Company reports will be subject to its financial closing procedures and any final adjustments that may be made prior to the time its financial results for the period ended March 31, 2020 are finalized.

First Quarter Earnings Results Conference Call

Nautilus will host a conference call at 4:30 p.m. ET (1:30 p.m. PT) on Tuesday, May 5, 2020 to discuss the Company’s operating results for the first quarter ended March 31, 2020. The call will be broadcast live via the Internet hosted at http://www.nautilusinc.com/events and will be archived online within one hour after completion of the call. In addition, listeners may call (877) 425-9470 in North America and international listeners may call (201) 389-0878. Participants from the Company will include Jim Barr, Chief Executive Officer, Aina Konold, Chief Financial Officer, and Bill McMahon, Special Assistant to the CEO.

A telephonic playback will be available from 7:30 p.m. ET, May 5, 2020 through 11:59 p.m. ET, May 19, 2020. Participants can dial (844) 512-2921 in North America and international participants can dial (412) 317-6671 to hear the playback. The passcode for the playback is 13701186.

Non-GAAP Presentation

In addition to disclosing its financial results determined in accordance with GAAP, Nautilus has presented in this release certain non-GAAP financial measures, which exclude the impact of certain items (as further described below) and provide supplemental information regarding operating performance. Nautilus presents non-GAAP financial measures as a complement to results provided in accordance with GAAP, and the non-GAAP financial measures should not be regarded as a substitute for GAAP. By disclosing these non-GAAP financial measures, management intends to provide investors with a supplemental comparison of operating results and trends for the periods presented. Management believes these measures are also useful to investors as such measures allow investors to evaluate performance using the same metrics that management uses to evaluate past performance and prospects for future performance. Nautilus strongly encourages you to review all its financial statements and publicly filed reports in their entirety and to not rely on any single financial measure.

We have not reconciled guidance for non-GAAP financial measures to our most directly comparable GAAP measures because certain items that impact these measures are uncertain, out of our control and/or cannot be reasonably predicted or estimated at this time, such as net/income tax or benefit from continuing operations. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.

EBITDA from Continuing Operations

Nautilus defines EBITDA from continuing operations as its income from continuing operations, adjusted to exclude interest expense (income), income tax expense (benefit) of continuing operations, and depreciation and amortization expense. Nautilus uses EBITDA from continuing operations in evaluating its operating results and for financial and operational decision-making purposes such as budgeting and establishing operational goals. Nautilus believes that EBITDA from continuing operations helps identify underlying trends in its business that could otherwise be masked by the effect of the items that are excluded from EBITDA from continuing operations and enhances the overall understanding of the Company’s past performance and future prospects. Management believes that EBITDA is frequently used by investors, securities analysts and other interested parties in their evaluation of companies, many of which present EBITDA when reporting their results. Other companies may calculate EBITDA differently, and it may not be comparable.

About Nautilus, Inc.

Headquartered in Vancouver, Washington, Nautilus, Inc. (NYSE: NLS) is a global technology driven fitness solutions company that believes everyone deserves a fit and healthy life. With a brand portfolio including Bowflex®, Nautilus®, Octane Fitness® and Schwinn®, Nautilus, Inc. develops innovative products to support healthy living through direct and retail channels as well as in commercial channels. Nautilus, Inc. uses the investor relations page of its website (www.nautilusinc.com/investors) to make information available to its investors and the market.

Forward-Looking Statements

This press release includes forward-looking statements (statements which are not historical facts) within the meaning of the Private Securities Litigation Reform Act of 1995, including: estimated, projected or forecasted financial and operating results for the first quarter of 2020, the expected impact of the COVID-19 pandemic on our operations and results; anticipated demand for the Company’s new and existing products; and statements regarding the Company’s prospects, resources or capabilities; planned investments, strategic initiatives and the anticipated or targeted results of such initiatives. Factors that could cause Nautilus, Inc.’s actual results to differ materially from these forward-looking statements include: weaker than expected demand for new or existing products; our ability to timely acquire inventory that meets our quality control standards from sole source foreign manufacturers at acceptable costs; an inability to pass along or otherwise mitigate the impact of raw material price increases and other cost pressures, including unfavorable currency exchange rates; experiencing delays and/or greater than anticipated costs in connection with launch of new products, entry into new markets, or strategic initiatives; our ability to hire and retain key management personnel; changes in consumer fitness trends; changes in the media consumption habits of our target consumers or the effectiveness of our media advertising; a decline in consumer spending due to unfavorable economic conditions; and softness in the retail marketplace. Additional assumptions, risks and uncertainties are described in detail in our registration statements, reports and other filings with the Securities and Exchange Commission, including the “Risk Factors” set forth in our Annual Report on Form 10-K, as supplemented by our quarterly reports on Form 10-Q. Such filings are available on our website or at www.sec.gov. You are cautioned that such statements are not guarantees of future performance and that our actual results may differ materially from those set forth in the forward-looking statements. We undertake no obligation to publicly update or revise forward-looking statements to reflect subsequent developments, events or circumstances.

https://cts.businesswire.com/ct/CT?id=bwnews&sty=20200408005709r1&sid=acqr8&distro=nx&lang=enView source version on businesswire.com: https://www.businesswire.com/news/home/20200408005709/en/

Investor Relations:
John Mills
ICR, LLC
646-277-1254
[email protected]

Media:
John Fread
Nautilus, Inc.
360-859-5815
[email protected]

Carey Kerns
The Hoffman Agency
503-754-7975
[email protected]

Source: Nautilus, Inc.

Phoenix/AZ, March 17, 2020 

Joe Keenan, who has served in various senior management positions since joining HEAD 9 years ago, has been promoted to VP of Sales, USA. In Keenan’s new role he will continue to manage our pro specialty sales efforts, tech rep program, as well as our key account strategy.  In addition he will expand his role with a number of our key industry partners.  “Joe is the consummate professional and has had success in every position he has held at HEAD.  I have no doubt this will continue in his new and expanded role.  He is widely respected within our industry and he is well equipped to lead our sales team forward,” said Kevin Kempin CEO & President, North America. 

Additionally, Jeff Bardsley, a 27 year veteran of HEAD will be promoted to VP of Marketing, North America.  Bardsley has held a variety of positions within HEAD Canada and was awarded the prestigious “HEAD Country of the Year” award leading the HEAD and Penn brands to #1 in Canada.  “Jeff’s in depth knowledge of the North American market, his track record of success, and his innovative thinking will serve us well in this new role,” said Kempin. 


*** 

ABOUT HEAD 

HEAD UK Ltd. is a leading global manufacturer and marketer of premium sports equipment and apparel. 
Our business is organized into five divisions: Winter Sports, Racquet Sports, Diving, Sportswear and Licensing. We sell products under the HEAD (alpine skis, ski bindings, ski boots, snowboard and protection products, tennis, racquetball, paddle, squash and pickleball racquets/paddles, tennis balls and tennis footwear, sportswear and swimming products), Penn (tennis balls and racquetball balls), Tyrolia (ski bindings) and Mares, SSI and rEvo 
(diving) brands. 

The Company´s key products have attained leading market positions based on sales and reputation and have gained high visibility through their use by many of today´s top athletes. 

MEDIA CONTACT: 
Allison Barnett – Brand Manager 
602-447-2324, [email protected]

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