Overall profitability and productivity in the specialty fitness retail market fell this year according to the NSGA cost of doing business study. Average net operating profit fell 220 basis points to 2.0% in 2003 from 4.2% in 2001. The average return on total assets dropped 1,140 basis points to 4.4%, versus 15.8% in 2001.
Gross Margin remained flat year over year at 38.2%, but sales per employee rose 38.1% to $343,375 from $248,681 in 2001. Average inventory turnover improved to 4.4x, compared to 4.1x in 2001. However, sales per square foot dropped 9.9% to $300 this year versus $333 in 2001. Total operating expenses rose 230 basis points to 36.2% versus 33.9% in 2001, and Shrinkage climbed 20 basis points to 0.6% versus 0.4% last year.
