Shares of Nautilus Inc. (NYSE: NLS) were rising 12.94% to trade at $1.92 in after-hours trade, as the company reviews strategic alternatives. NLS stock gained 1.80% to close the regular session at $1.70.
How has NLS been evaluating alternatives?
It was announced yesterday that Nautilus (NLS) has launched a comprehensive review of strategic alternatives with the support of its Board (the “Board”). As part of its previously announced North Star plan, the Company may look to sell Nautilus as a way to accelerate its digital transformation and enhance shareholder value.
By executing its North Star strategy, NLS has transformed from a hardware company focused on products to a digitally connected, consumer-driven company focused on consumer experiences. The Board felt the time was right to review strategic options given the dynamic market environment and the growth of the home fitness sector, as well as Nautilus’ potential to accelerate North Star.
It is well poised for long-term growth and profitability with its portfolio of innovative products and leading brands, as well as its growing omnichannel distribution network. Moreover, Nautilus will expand its digital fitness platform, JRNY, to more than 360,000 members by June 30, 2022.
Evercore has been retained as a financial advisor by the NLS Board. A timetable for the completion of this review has not been set by the Board, and no assurances can be made that any transaction or other strategic changes will result from it. If Nautilus determines that further disclosure is appropriate or necessary, it will not comment on developments in the process.
What could NLS gain from the review?
In any case, Nautilus (NLS) future looks bright because of recent investment in reaching more potential customers, increasing its membership base, adding new retailer partners, and expanding its supply chain. As the at-home fitness ecosystem continues to evolve, NLS appears to be in a good position to evaluate any opportunities that may accelerate its transformation and enhance its shareholder value, and benefit its employees, customers, and vendors as well.