Shares of Nautilus Inc. plunged 20.5% in morning trading, putting them on track for the lowest close since March 2020, after the exercise equipment and digital fitness company swung to a fiscal fourth-quarter loss, as revenue that fell sharply from a year ago while gross margins were more than halved. The company also provided fiscal first-quarter sales guidance of $45 million to $55 million, which was well below the current FactSet consensus of $70.4 million, and consensus at the end of April of $114.6 million. For the quarter to March 31, the net loss was $18.2 million, or 58 cents a share, after net income of $30.4 million, or 93 cents a share, in the year-ago period. Sales dropped 41.9% to $119.7 million, while cost of sales declined 22.2% to $98.7 million as gross margin contracted to 17.5% from 38.4%. Truist analyst Michael Swartz followed by slashing his stock price target to $5 from $15 while keeping his rating at buy. Shares of at-home fitness and exercise equipment maker Peloton Interactive Inc.’s stock slumped 8.6% in the wake of its rival’s disappointing results and outlook. Year to date, Nautilus shares have plummeted 67.4% and Peloton’s stock plunged 65.2%, while the S&P 500 slumped 18.2%.
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