You are in:
ICON Health & Fitness Reduces FY Loss
ICON Health & Fitness' FY06 net sales decreased $18.8 million, or 2.2%, to $852.2 million. ICON reported a net loss of $49.7 million vs. a loss of $110.0 million. The 10-K revealed that in July, ICON notified by the Internal Revenue Service that FT03 through FY05 would be under examination and this is in preliminary stages. Net loss was $49.7 million in FY06 compared to a net loss in 2005 of $110.0 million.
The FY06 decrease in sales was primarily due to lower customer demand for certain products. Sales of ICON cardiovascular and other equipment in FY06 increased $2.4 million to $741.1 million. Sales of strength training equipment in FY06 decreased $21.2 million to $111.1 million.
Gross profit for 2006 was $227.4 million, or 26.7% of net sales, compared to $214.4 million, or 24.6% of net sales in FY05. This 6.1% increase was primarily due to the timely release of products, manufacturing efficiencies and reductions in air freight.
During 4Q06, ICON discontinued the NordicTrack retail subsidiary. This consisted of more than 60 NordicTrack retail outlets nationwide. The NordicTrack brand will continue to be one of ICON's strongest competing brands in all of its distribution channels, and the discontinuance of the retail locations did not result in the impairment of the NordicTrack trade name.
