The Nautilus Group, Inc. on Wednesday announced that based on preliminary information and current market conditions, it is revising its earnings expectations for the second quarter and the year.
The Company expects to report second quarter net sales in the range of $95 to $100 million with a corresponding earnings per share range of $0.13 to $0.15. These estimates are preliminary and remain subject to final revisions.
For the year, the Company’s revised 2003 revenue estimate ranges from $450 to $470 million with corresponding earnings per share estimate ranging from $1.00 to $1.10. In terms of revised earnings on a quarterly basis for 2003, the Company expects the third quarter will represent approximately 18% to 20% of earnings. The Company expects operating cash flow for the year to be approximately $35 million to $40 million.
“A challenging business environment, Bowflex product line competition, and lackluster consumer spending continue to affect our business,” began Brian Cook, Chief Executive Officer. “In the first and second quarters of this year, increased competition has had an adverse affect on direct sales of the Bowflex product line and soft consumer spending has negatively impacted both our direct and commercial/retail divisions. However, we remain very excited by results-to-date for the TreadClimber(R), and the continued success of our Bowflex retail launch.”
Mr. Cook added, “While we are encouraged with many areas of our business, our success at this point does not offset the adverse environment and competition with regard to the Bowflex we are currently encountering. Nautilus maintains the strongest financial position in our industry, combined with our new initiatives this year and the long-term outlook for our portfolio of leading health and fitness brands, we expect to remain one of the branded health and fitness product leaders for years to come.”