By Claudia Assis
Nautilus Inc. stock rallied as much as 12% in the extended session Monday after the fitness-equipment maker said it was looking for “strategic alternatives” for its business, including potentially selling itself.
At last check, Nautilus stock was up nearly 4% after hours. The stock was halted in late regular trading ahead of the news.
The goal is to identify ways the company can accelerate its move “from a product-led hardware company to a consumer-led, digitally connected company,” board chair Anne Saunders said in a statement.
Chief Executive Jim Barr said Nautilus’ digital fitness platform had more than 360,000 members as of June 30. “Regardless of the outcome of this process, the future is bright for Nautilus,” Barr said.
“Our recent investments have allowed us to reach more of our target customers, grow our member base, add new retailer partners and expand our supply-chain capacity,” Barr said.
Nautilus’ board has hired Evercore as the company’s financial adviser. There’s no timetable for the completion of the review, the company said.
In June, the company recalled 7,300 treadmills for a self-starting hazard.
Shares of Nautilus have lost 73% so far this year, compared with losses of around 23% for the S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.09% .