Credit Woes Hurt Nautilus’ Direct Operations

Nautilus Inc., which sells high-ticket exercise equipment through a variety of financing structures, blamed weakness in the consumer segment and a tight credit environment for a substantial loss in its third quarter.

For third quarter 2008, Nautilus’s sales were $93.7 million, down from $115 .3 million a year ago. Most of the drop came from the firm’s direct marketing-generated revenue. DM sales plunged from $58.8 million a year ago to $38.7 million. The quarter ended Sept. 30.

Nautilus’ third quarter retail sales held steady at $26.5 million during the year, while its commercial sales slipped from $29.7 million to $28.4 million. Overall, the company took a net loss of $34.1 million, a significant decline from the $13.4 million it recorded in third quarter 2007.

The current third-quarter loss included restructuring and other charges of $8.2 million.

Separately, Ken Fish will take the position of chief financial officer on Nov. 11. Fish has been with Nautilus for three years, most recently as chief administrative officer and general manager of its commercial business. The incumbent CFO Bill Meadowcroft will leave the company at the end of the year, and will assist Fish with the transition process.