ICON Health & Fitness saw its Cardio equipment start to regain some of its energy again in the fiscal third quarter ended February 26 as the division posted its first increase in sales since Q3 in the prior year. Still, the increase in the company’s core division wasn’t enough to offset the nearly 50% fall in sales in the Strength Training division, which led to an overall decline in revenues and a loss for the period.

The sharp increase in steel prices looks to be still taking its toll on ICON as gross margins declined again for the quarter versus last year, a trend the company has seen for the current fiscal year. ICON also attributed part of the GM decline to a smaller percentage of sales coming from its direct-to-consumer business. Management said a 150 basis point improvement in SG&A, to 11.0% of sales in Q3 this year versus 12.5% in the year-ago period, was due in large part to “reduced advertising and trade show expenses.”

ICON saw a $2.0 million loss from its discontinued operations, including the shutdown of the JumpKing business and the subsequent divesture of the spa business in Q3, compared to a $1.6 million loss in Q3 last year.