"Looking forward, the underlying progress on key initiatives remains positive, including strong improvement of 440 basis points in gross margin and improved net working capital utilization in the quarter versus the same period last year. The new line-up of Retail products has been well received and we are optimistic that the improvements made to our product line will lead to improved Retail segment revenue and operating results in the second half of 2013 and on a full year basis when compared to the same periods last year. Our Direct business continues to grow due to increased sales of our new products, including the Bowflex® UpperCut™, as well as the steady growth of our existing cardio products, especially the Bowflex® TreadClimber® product line."