What happened 

Shares of workout equipment maker Nautilus (NYSE:NLS) fell as much as 25% on Tuesday, after the company reported earnings and gave a bearish outlook for 2019. At market close, shares were still down 23.5% on the day, closing at a multi-year low. 

So what

Sales for the fourth quarter were down 9.7% to $115.4 million as direct sales fell 30.3%, offset by a 16.1% rise in retail sales. Income from continuing operations fell from $8.5 million a year ago to just $1.5 million, or $0.05 per share. Analysts were expecting $114.7 million in revenue and $0.04 per share in earnings, so it wasn't past results that sent shares lower; it was future outlook

Workout equipment in a home.

Image source: Getty Images.

Management said sales would be weak for most of the first half of 2019 as the company works through inventory. Management didn't give guidance, but we can probably expect significant declines for at least the next two quarters. 

Check out the latest Nautilusearnings call transcript.

Now what

Given the tepid outlook, there's not a lot of clarity about whether Nautilus will remain profitable in 2019. The direct-to-consumer market continues to weaken, and that's not a great sign for a company that should be making direct connections with its users. Investors don't like uncertainty, and that's why the stock is down big today.