To assist with the process, the Board has hired Evercore as a financial advisor
Nautilus, Inc. has announced that its Board of Directors has launched a comprehensive review of strategic alternatives, which could include the potential sale of the home fitness company. In response, shares of the fitness equipment manufacturer rose over 8% in premarket trading on Tuesday.
According to Anne Saunders, Chairman of the Board, Nautilus is looking for opportunities to accelerate the fitness company’s digital transformation. Last month, Nautilus announced the appointment of Saunders as new board chair.
“We have made tremendous progress executing our North Star strategy and transforming Nautilus from a product-led hardware company to a consumer-led, digitally connected company,” said Saunders in a press release making the announcement. “Given the dynamic market environment and growth of the home fitness sector, as well as the potential we see to accelerate North Star, the Board felt the time was right to review strategic options.”
The North Star strategy, as noted by Saunders, was a long-term plan that Nautilus implemented with the goal of doubling sales by 2026 as it sought to capitalize on the at-home fitness boom. Nautilus, maker of well-known fitness products like Bowflex and Schwinn, stated at the time that it would rely on brand recognition, a diverse product portfolio, and omnichannel distribution.
Now, Nautilus CEO Jim Barr says that the home fitness company is well-positioned to deliver long-term growth and profitability, and that the company intends to expand JRNY, its digital fitness platform, further. As of June, JRNY had over 360,000 members.
“Regardless of the outcome of this process, the future is bright for Nautilus. Our recent investments have allowed us to reach more of our target customers, grow our member base, add new retailer partners, and expand our supply chain capacity. Given the state of the at-home fitness ecosystem, we believe the timing is right to comprehensively assess any opportunities that may accelerate our transformation and enhance value for our shareholders, while also benefiting our customers, employees, and vendors,” Barr said.
The Nautilus Board has hired Evercore to assist with the process, and no completion date for the strategic review has been set.
The fitness maker just launched a new Bowflex BXT8J treadmill that can be paired with a phone or tablet, allowing access to the JRNY adaptive fitness app. The latest treadmill, $1,299, was priced with a recent survey in mind, which revealed to Nautilus that affordability is the most important feature of a treadmill and that cost can be a significant entry barrier.
Courtney Rehfeldt has worked in the broadcasting media industry since 2007 and has freelanced since 2012. Her work has been featured in Age of Awareness, Times Beacon Record, The New York Times, and she has an upcoming piece in Slate. She studied yoga & meditation under Beryl Bender Birch at The Hard & The Soft Yoga Institute. She enjoys hiking, being outdoors, and is an avid reader. Courtney has a BA in Media & Communications studies.