"The economy was in the doldrums around 9/11and thereafter. Yet during this period of time I believe nls was gining. I understand the war took 200,000 or so young people to Iraq but why did this event result in such a difference than 9/11 which actually was a very good time for the company."
because changes in competition, ad rates, conversion rates, and the typical product cycle of an expensive, luxury product are proving equaly important to focus on.
Company pulled back on ads for NSS (sleep system), NLS never mentioned if they were increaseing/decreasing ads for the Bowflex.
Sales of Treadclimber couldn't possible help NLS return to 16-18% profit in the near term (within a year), they simple have not and do not plan on sell a significant amount. Though they'll gradually build sales and longs are hoping a noticed effect by end of 2004. (of course NLS could be accelerating their sales projections etc. I don't know for sure since I don't work there, but I'll assume they'll keep to the plan the layed out earlier this year for the Treadclimber)
In my mind when I used the word Bowflex I was and am referring to Bowflex direct sale products only. This is still representing about 53% of NLS total sales. I fully understand that the Crossbow is in competition with Bowflex retail and low end products however it should not have a significant impact on NLS total business.
Sorry titon , you need to doyour home work , the schwinn comp , which is the bowflex retail item sells for 799 versus 599 for the crossbow .
Also the crossbow has been at retail and selling much longer than the comp , so it has affected the sells and the purchasing by the actual retailer of the comp .
i Con is a low quality builder who has been rumoured to go under for a long time .
The economy was in the doldrums around 9/11and thereafter. Yet during this period of time I believe nls was gining. I understand the war took 200,000 or so young people to Iraq but why did this event result in such a difference than 9/11 which actually was a very good time for the company. You mentioned the company probably pulled all their ads except the one they were obligated to run. If you don't put your bait in the water you don't get fish. Now that the ads are on treadclimber and the upper end ultimate I hope the margins will return to 16-18%. Thanks for your input, Ticon
You are right Auz13. I unfortunately picked the 2002 ($23,958) rather than the 2003($13,689). Readers should accordingly ignored my observation on the first Quarter result and replaced it by "the first quarter results(10.6%) show a significant decline compared to the past 3 years results (16-18%). Thank you for your correction. By the way, I would like to know how to align colums and numbers in a message. Yours look really great.
Q1 margin was 10.6% not 17.5%, I'm assuming you accidently mixed up some numbers (perhaps Q1 2002 w Q1 2003)
As you can see from the chart below, NLS margins are on a down trend, and is not a single quarter jinx.
Revenue......... Earnings........ Profit Margin
Q1 $135.9......... $24.0............ 17.7%
Q2 $140.4......... $25.8............ 18.3%
Q3 $152.9......... $25.1............ 16.4%
Q4 $155.4......... $23.0............ 14.8%
Q1 $129.4......... $13.7............ 10.6%
Q2 $100.6......... $ 4.7............ 4.7%
<NLS will easily see 24 by next week>
I will be always mesmerized by somebody visionary capability and probably even more the way some seem to use the "recommendation button". Too many times it appears to be inversely proportional to the length of the message or related to a personal attack. Is is possible that there is a difference between to be in agreement with the content of a message and a recommendation to read it? Why is anybody(2 readers)recommending this message? For its content value or is it what you called the alias phenomenon? If they are recommanding it because they sincerely believe the content, is is even worst.