1. Nautilus, Inc. Shrinks Loss in Q1 but Sales Drop 24 Percent
Nautilus Inc., the parent company of Bowflex, managed to reduce its loss in the fiscal Q1 ending June 30 due to improved gross margins and reduced expenses, compared to the previous year which included a $27.0 million asset impairment charge. Sales were down 23.8%, with a 17.5% drop in the Direct segment and a 29.0% drop in the Retail segment.
The company reaffirmed its FY24 guidance, expecting a significant year-over-year improvement in adjusted EBITDA loss. The JRNY digital fitness platform's membership grew by 48%, reaching 535,000 by the end of the quarter compared to a year ago. Nautilus, Inc. also encompasses the Nautilus and Schwinn fitness products.
CEO Jim Barr attributed the positive results to operational efforts, supply chain improvements, and cost reduction actions, leading to better gross margins and adjusted EBITDA loss. The company achieved seven consecutive quarters of improved inventory levels, bolstered its liquidity position, and strengthened its balance sheet, providing financial flexibility in the volatile retail landscape while executing its North Star Strategy.
Barr emphasized their expansion of the digital offering, JRNY, with membership exceeding 535,000. Momentum in the Direct business reflected enhancements to the product portfolio, and they anticipate launching a new line of products with the BowFlex visual branding in the upcoming Fall season. With improved profitability, sufficient liquidity, and progress on their North Star strategy, the company is poised to capitalize on the enduring trend towards at-home fitness in the long run.
2. Australian group class franchise brand F45 has announced its delisting
On August 14, US time, F45 announced to the public that it was voluntarily delisting from the New York Stock Exchange and would be suspending its reporting obligations. Its shares closed at $0.18 per share in early trading Tuesday, down 69% from last month.
F45 said that persistently low trading values and prices have impacted the company's ability to raise capital, and that the move will reduce significant expenses in order to save costs. In addition, the delisting means that the company's management and staff can focus more on the management of F45 and enhance the maintenance of relationships with franchisees and suppliers.
F45 Training is a leading boutique fitness franchise platform that went public in July 2021. On April 14 of this year, the New York Stock Exchange first notified F45 of a violation because it had not yet filed its required 10-K statements for the fourth quarter of 2022 and the full year of 2022 with the SEC.
3. YogaSix, the largest yoga brand in the U.S. Signs Over 600 Franchise Agreements
YogaSix, the largest boutique yoga brand in the U.S., recently announced that as of August 9, YogaSix has officially signed more than 600 franchise agreements, further strengthening the brand's presence in the United States. Meanwhile, six core formats - Y6 101, Y6 Restore, Y6 Slow Flow, Y6 Hot, Y6 Power and Y6 Sculpt Flow - will help drive the brand's world-class yoga experience.
Notably, YogaSix made its debut this year on Entrepreneur Magazine's "2023 Franchise 500 List," which ranks brands based on financial strength, stability, brand impact and other factors, and ranked YogaSix No. 1 in the yoga space. YogaSix was ranked No. 2 in the yoga space on the recently released "Best Franchises to Work For 2023" ranking.
4. DHZ appointed David von Hase as new product and quality management head
As of June 2023, DHZ has restructured its product management team. David von Hase, CEO of the European Sales Division, will take over the position of Head of Product Management at DHZ's new headquarters in China.
The appointment of David von Hase as Head of Product Management at DHZ's headquarters demonstrates the company's strategic decision to move into the global, especially European market. Prior to his involvement in the fitness industry, David von Hase gained a wealth of technical experience in the automotive components sector, which has provided him with a foundation for his work in the fitness equipment sector. According to David von Hase, the DHZ China team excels in technical implementation and has an unrivaled ability to produce cost-effective products. He also said that Shao Wentao, Technical Manager, who has been with the company for 12 years, has made a crucial contribution to DHZ's success. David von Hase said: "My goal is to complete the major innovations and new product range before FIBO 2024. We will then present DHZ's products to the world and inspire our customers on a stand covering 800 square meters."
Author:
Roger Yao （cs01@fitqs.com)
The founder of FITQS/FQC
The columnist of magzine <China Fitness Equipment>
20 years in fitness/sporting equipment OEM/ODM technical and sourcing management.
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