Just weeks after modernizing its Bowflex brand, Nautilus is planning a company-wide refresh
Nautilus Inc. is working on a “total company rebrand” that will solidify its position in the connected fitness industry, its CEO Jim Barr said during an earnings call, seeming to reveal that the company would be changing its name.
The Vancouver-based fitness maker announced its fiscal first quarter 2024 results, reporting net sales of $41.8 million, down 23.8% when compared to last year ($54.8 million), although gross profit increased 24.3% to $8.6 million when compared to $7.0 million last year.
On Thursday’s earnings call with investors, Barr emphasized that Q1’s results demonstrate the company’s progress to return to profitability. Earlier this year, Nautilus laid off 15% of its workforce as a cost-savings measure.
“We are pleased with our performance to start the year, but recognize that there’s still a long way to go in fiscal ’24,” Barr said.
From BowFlex Makeover to a Total Rebrand
“The fitness industry is a sea of sameness, and the new Bowflex brand is designed to stand apart,” Barr said of the brand revamp.
In addition to the refresh, there will be an entire company rebrand coming soon, one designed to reinforce Nautilus’ identity as a leader in the connected home fitness industry.
“The recent sale of the Nautilus brand has further strengthened our strategic direction,” Barr said “As a result, we are currently in the process of executing a total company rebrand by the end of the calendar year.”
Barr seemed to tell investors that Nautilus would be changing its name as part of the rebrand.
“We haven’t announced the new name yet, we kind of want you to be on the edge of your seats,” he said. “We’ll announce that a bit later and plan to complete it by the end of the calendar year.”
In May, Nautilus announced it was selling $13 million in non-core assets, including the Nautilus brand trademark assets and related licenses, in an effort to boost its balance sheet.
Upcoming Fitness Products
Looking ahead, consumers can expect a “robust first wave” of updated connected fitness equipment this fall, all featuring updated visual branding.
As the holiday fitness season approaches, Nautilus confirms it will enhance its fitness offerings under Bowflex.
“We plan to follow up this wave of exciting new Bowflex products and JRNY features in calendar 2024, in both strength and cardio portfolios,” Barr said.
While Nautilus relies on the retail sector as part of its omnichannel approach, it acknowledges the retail environment remains uncertain.
Still, Barr reported that consumer interest in at-home fitness is “encouraging,” with solid demand. Nautilus reported direct sales of $22 million, while financial results in Nautilus’ retail segment aligned with the company’s expectations.
Digital Shows Promise
While Nautilus remains focused on its path to profitability, scaling is also vital to the company. Barr reports that its efforts have been “fruitful” so far, with over 535,000 members on Nautilus’ JRNY digital fitness platform at the end of Q1, a 48% year-over-year growth.
The digital fitness platform offers an adaptive fitness membership. The company introduced the JRNY app with motion tracking earlier this year, with personalized coaching and feedback, automatic rep tracking, form guidance and adaptive weight targets.
“Among these members 150,000 are subscribers, showcasing 17% year-over-year growth,” Barr shared, adding that Nautilus has also rightsized its inventory and reduced lead times.
The moves Nautilus made to strengthen its balance sheet have paid off, with Barr telling investors the company has improved liquidity and financial flexibility to weather the macroeconomic environment. The company reported operating expenses of $19.2 million compared to $58.1 million last year, due in part to the sale of its non-core assets.
“Additionally, in June, we made a public offering of common stock to raise additional cash for the balance sheet, as well as provide additional flexibility to opportunistically invest in marketing and drive sales growth,” Barr said. “This places us in a better position as we prepare for our product launches in the upcoming fitness season.”
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.