Net income surged 19% in the fourth quarter to $11,610,000 from $9,718,000 as revenues increased 15% to $125,764,000 from $109,140,000 on the strength of Octane Fitness sales, but organic sales declined single-digits in both Retail and Direct segments. Overall gross margin gained 290 basis points to 51.0% benefitting from improved product and channel mix as well as higher-margin Octane sales. Operating expenses leveraged 120 b.p. to 35.6% of sales on lower selling and marketing costs despite additional investment in R&D.

Retail segment sales increased 44% to $60.0 million, with gains from Octane more than offsetting a 6% decline in organic sales, ... Log in to view full article.