Nautilus 2015 Annual Report Download - page 26
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Please find page 26 of the 2015 Nautilus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.The following tables compare the net sales of our major product lines within each business segment (in thousands):
Year Ended December 31,
2015 2014 Change % Change
Direct net sales:
Cardio products (1) $ 210,578 $ 160,249 $ 50,329 31.4 %
Strength products (2) 15,017
15,344
(327) (2.1)%
225,595
175,593
50,002
28.5 %
Retail net sales:
Cardio products (1) 63,762 56,262 7,500 13.3 %
Strength products (2) 42,433
36,961
5,472 14.8 %
106,195
93,223
12,972
13.9 %
Royalty income 3,974
5,631
(1,657) (29.4)%
$ 335,764
$ 274,447
$ 61,317
22.3 %
Year Ended December 31,
2014 2013 Change % Change
Direct net sales:
Cardio products (1) $ 160,249 $ 114,846 $ 45,403 39.5 %
Strength products (2) 15,344
21,817
(6,473) (29.7)%
175,593
136,663
38,930
28.5 %
Retail net sales:
Cardio products (1) 56,262 36,692 19,570 53.3 %
Strength products (2) 36,961
40,083
(3,122) (7.8)%
93,223
76,775
16,448
21.4 %
Royalty income 5,631
5,365
266 5.0 %
$ 274,447
$ 218,803
$ 55,644
25.4 %
(1) Cardio products include: TreadClimber ® , Max Trainer ® , treadmills, exercise bikes and ellipticals.
(2) Strength products include: home gyms, selectorized dumbbells, kettlebell weights and accessories.
Net Sales and Cost of Sales
Direct
The 28.5% increases in year-over-year Direct net sales for both 2015 compared to 2014 and 2014 compared to 2013 were primarily related to a 31.4% and 39.5%
increase, respectively, in Direct sales of our cardio products that were due primarily to growth of the Max Trainer ® , partially offset by declines in the
TreadClimber ® and strength products. The business also benefited from higher U.S. consumer credit approval rates in both years.
The increases in Direct net sales of cardio products in 2015 compared to 2014 , and in 2014 compared to 2013 , were partially offset by a 2.1% and a 29.7%
decline, respectively, in Direct net sales of strength products, primarily rod-based home gyms. The declines in sales of rod-based home gyms were attributable, in
part, to the reduction of advertising for these products over time, as management determined that television advertising spending on this mature product category
was generating suboptimal returns. We continue to market and sell rod-based home gyms through more cost efficient online media and through the Retail channel.
Combined consumer credit approvals by our primary and secondary U.S. third-party financing providers were 48.1% in 2015 compared to 41.4% in 2014 and
36.1% in 2013 .
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