The third quarter net loss at the fitness equipmentmaker improved to $4,306,000 from a loss of $24,418,000 for the period endedSep. 30. The operating loss, however, was 14% higher in Q3 at $3,225,000against a loss of $2,822,000. Net sales fell 7% to $38,474,000 from $41,431,000as gross margins tumbled 590 b.p. to 43.1%, in part due to a company test ofvarious retail price points for the Tread Climber.

By segment, retail sales grew 3.0% to $16,118,000 ondecent sell-through rates in an improving environment. Fitness bikes and salesto new customers drove the better performance. The Direct segment suffered anear 15% decline in quarterly ... Log in to view full article.