Nautilus Hit With NYSE Non-Compliance Over Low Stock Price
The struggling fitness equipment maker has teased a total company rebrand including a potential name change
Nautilus, Inc., the parent company of BowFlex, has received a non-compliance notice from the New York Stock Exchange. The fitness equipment maker isn’t meeting its price criteria, as the average closing price of its common stock has been less than $1.00 per share over a consecutive 30-trading day period.
While the NYSE-issued notice doesn’t result in the immediate delisting of the stock, Nautilus confirmed it will respond within ten business days of its intent to cure the deficiency. According to NYSE rules, the fitness maker has a six-month period following the notice to regain compliance.
Facing difficulties post-pandemic, Nautilus started employing what it calls a “North Star” strategy in 2021 to correct course.
The Vancouver-based fitness maker laid off 15% of its workforce as a cost-savings measure earlier this year and announced it would sell $13 million in non-core assets, including its name trademark, to boost its balance sheet after a steep decline in net sales. Other plans included raising approximately $5 million for general corporate purposes through a direct public offering and warrants.
Nautilus raised eyebrows this summer with plans for a “total company rebrand,” a decision that CEO Jim Barr, told investors would solidify its position in the connected fitness industry. He indicated that the upcoming revamp may include a company name change by the end of the year.
“We haven’t announced the new name yet, we kind of want you to be on the edge of your seats,” Barr said.
Nautilus also gave its BowFlex line an overhaul to attract younger fitness consumers.
The company recently posted its fiscal Q1 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.
“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 told investors.
The company recently released the Schwinn 490 Elliptical, a connected fitness machine that Nautilus said was in response to customer feedback.
