ICON Health & Fitness posted stronger top-line results for the company’s fiscal first quarter ended September 3, but an income tax benefit in the year-ago period offset an otherwise positive development in the loss for the period. The loss before taxes actually decreased nearly 17% versus last year. The company saw an improvement in both gross margin and sales, R&D, and G&A, but nearly $6.7 million in interest expenses contributed to the loss for the period.

The company attributed the sales gain to increased customer demand for ICON’s products. The gross margin gain was attributed to a change in product mix, distribution channel mix, and product release schedule. The expense decline reflects reduced advertising spend combined with reductions in legal fees.

ICON Health & Fitness
Third Quarter Results
(in $ millions) 2005 2004 Change
Total Sales $144.2  $134.6  +7.1%
Strength $25.0  $26.8  -6.7%
Cardiovascular $119.2  $107.8  +10.6%
Gross Margins 27.2% 25.1% +210 bps
SG&A % 16.6% 16.2% +40 bps
Net Loss ($24.8) ($20.8) -28.5%
Inventory @qtr-end $176.4 $230.5 -23.5%
Accts Rec @qtr-end $116.1 $139.1 -16.5%