1. The Centr app, founded by actor Chris Hemsworth, launching into fitness equipment market
The company behind the Centr app, co-created by Chris Hemsworth and his coach Luke Zocchi, is set to introduce a line of fitness equipment to complement its digital offerings. This expansion means that Centr will exist as both a physical and digital health and wellness offering, with plans to produce home and commercial fitness equipment, as well as a range designed for athletes.
This move was anticipated after Centr was acquired by HighPost Capital, led by Mark Bezos (brother of Jeff Bezos), in March 2022. HighPost Capital also acquired Inspire Fitness and its parent company, Health in Motion LLC, and appointed Andrew Sugerman as CEO in September 2022. The aim is to integrate Centr and Inspire Fitness and introduce new products and services.
Centr originally launched in February 2019 and has since become a prominent fitness, mental health, nutrition, and lifestyle app. The upcoming expansion will involve launching a new line of consumer goods and fitness products available in major U.S. retailers and select global markets. It will combine digital content with physical products, creating a holistic health and wellness ecosystem.
The product lineup for 2023 will focus on at-home consumer use, while plans for broader commercial opportunities are slated for 2024. Chris Hemsworth remains a shareholder in Centr and will continue to promote the brand. (By HCM)
2. Anytime Fitness is aiming to grow to 10,000 locations globally in the next five years
Dave Mortensen, co-founder of Self Esteem Brands (SEB), the company behind several wellness brands including Anytime Fitness, has stated their ambition to reach 10,000 units globally within the next five years. This would establish them as the largest wellness franchise business globally. Currently, SEB operates around 5,500 locations across seven continents.
Mortensen outlined a growth strategy that combines organic expansion through their existing brands with acquisitions. He estimated an 80/20 split, with about 80 percent of growth coming from current brands and 20 percent from new acquisitions. SEB intends to target larger operators for acquisitions, aiming for brands with over 100 units.
While Anytime Fitness will be a focal point for expansion, SEB plans to grow all its brands, including Waxing The City and studio brands, which have shown positive growth trends. The group's decision to expand Anytime Fitness into France is also discussed, with the expectation of establishing 350+ clubs in various regions of the country.
Overall, SEB aims to impact 100 million people globally, building on the 20 million they estimate to have already reached through their wellness brands. (By HCM)
3. Psycle pivots to memberships and opens fifth studio powered by renewable energy
Psycle, the boutique indoor cycling operator in London, has opened its fifth studio in the city and introduced a membership model that has proved to be very popular. The membership, priced at £95 per month, offers members access to five classes each month at £19 per class. Memberships have a minimum duration of three months, and additional packages are available for more classes, up to £325 per month for 25 classes (£13 per class). An 'Under 27' membership option provides a 25% discount on all studio and at-home memberships. The new studio, Psycle Victoria, is located in the residential area of Eccleston Yards near Victoria Station and features a 50-bike Ride studio, as well as a barre and yoga space. The studio is part of the Ice Factory development by Grosvenor and will operate on renewable energy, supporting Grosvenor in achieving its sustainability goals. Psycle plans to expand further in London, with potential new studios in the pipeline in addition to its existing locations in Clapham, Notting Hill, Shoreditch, and Oxford Circus. (By HCM)
4. August U.S. Consumer Confidence Index Decline is Highest in Two Years
Consumer confidence in the United States experienced its steepest decline in two years, influenced by concerns over the job market, rising interest rates, and persistent inflation, which eroded optimism. The Conference Board anticipates a recession before the year's end.
The Conference Board's index dropped from 114 in July to 106.1 this month, contrary to economists' expectations of a slight dip to 116 from the initial reading of 117, the highest in two years.
The Present Situation Index, based on consumer evaluations of current business and labor market conditions, fell to 144.8 from 153.0. The Expectations Index, reflecting consumers' short-term outlook for income, business, and labor market conditions, declined to 80.2 in August, reversing July's significant increase to 88.0, hovering just above the historically recession-signaling level of 80. The Conference Board maintains its prediction of an imminent recession by year-end.
Dana Peterson, The Conference Board's chief economist, noted that consumer concerns were primarily focused on rising prices, particularly for groceries and gasoline. Confidence levels dipped across all age groups but were most pronounced among those with household incomes exceeding $100,000 and those earning less than $50,000. For those with incomes between $50,000 and $99,999, confidence remained relatively stable.
Peterson highlighted diminished optimism about employment conditions, with fewer consumers reporting job availability as 'plentiful' and more indicating that jobs were 'hard to get.' Employment growth has slowed, wage increases have moderated, and the duration of unemployment has increased. Business conditions remained relatively stable compared to July but somewhat lower than in June.
She also mentioned concerns about current family financial situations and noted that expectations for future business conditions, job availability, and incomes had declined due to negative corporate earnings news, narrowing job opportunities, and rising interest rates. Despite the overall dip in confidence, consumers' intentions to go on vacation, especially abroad, surged during the month, suggesting a continued willingness to spend on services. -（by SGB）
5. EoS Fitness Opens Phoenix, AZ Location
EoS Fitness, the gym chain with a nationwide presence that originated in Arizona, has announced the opening of its latest facility in Phoenix, spanning 40,000 square feet. This new location is equipped with a wide range of cardio machines, state-of-the-art strength training equipment with smart technology, and various recovery options.
Richard Idgar, the COO of EoS Fitness, emphasized the company's deep commitment to growth in Arizona, highlighting that EoS Fitness opened its first gym in the state back in 2015. Today, they have nearly 30 locations across Arizona. Idgar also mentioned that their focus on growth extends beyond opening new gyms, as they are actively reinvesting in existing locations with multiple million-dollar renovations to ensure all EoS Fitness members have access to their new amenities and specialized offerings. （by SGB）
6. Academy Sports and Outdoors, Inc. Exceeds Second Quarter Expectations
Aug 31, 2023，Academy Sports and Outdoors, Inc. has reported second-quarter earnings that slightly surpassed analyst forecasts. Despite a 7.5 percent decline in same-store sales for the quarter, there was steady improvement as the quarter progressed. Academy has reaffirmed its sales guidance and raised its EPS projection, thanks to share repurchases.
The second-quarter adjusted EPS stood at $2.09, outperforming Wall Street's projected $2.03. Sales were in line with Wall Street's consensus estimate of $1.58 billion.
7. BH Fitness presents the new G788 treadmill
BH Fitness presents the new G788 treadmill. (August 28, 2023). BH Fitness's Inertia range is enriched with the addition of the G788 treadmill.
Designed to deliver exceptional performance, the G788 treadmill, included in the BH Fitness Inertia range, is, as the brand claims, a "testament to the brand's commitment to innovation in a range that is synonymous with the evolution of the fitness market."
The G788 treadmill stands out for its power and versatility. Equipped with a 5CV motor, a maximum speed of 25 km/h, and an incline/decline of +15%/-3%, this machine is ready to push the limits. The spacious running surface of 160×58 cm provides a comfortable and roomy space for a variety of workouts and intensity levels.
The G788 complements its smaller sister, the G688. While both treadmills share the same chassis, the G788 stands out for having additional specifications.
CONNECTIVITY AND INTEGRATION： The Inertia G788 is compatible with the fastest touchscreen technology on the market. Available with Smart Focus monitors of 19, 16, and 12 inches in high resolution, users will have access to all content, workouts, apps, and internet browsing with maximum connectivity.
In its LED monitor version, it incorporates FTMS technology, making it compatible with various training applications, such as Zwift, among others.
GYMLOOP：Continuing with the philosophy of unifying all BH Fitness ranges through an innovative technological environment, the G788 treadmill seamlessly integrates with Gymloop. It's worth noting that BHGymloop is the first tool integrated natively with all gym equipment, allowing for more efficient management of fitness centers. （By BH）
8．Fitnessdigital returns to the billings of the pre-covid era
(28-8-2023). Resizing times. After the historic 2020 in which Fitnessbit, the company that operates in the retail specialized in fitness under the Fitnessdigital brand, revalidated its return to pre-covid magnitudes in 2022. Its fall, in relation to 2021, was 32%, although it managed to withstand the rate and not fall below the pre-pandemic figures.
Fitnessbit, the company that governs the designs of ecommerce Fitnessdigital, leader of retail specializing in fitness in the Spanish market, is immersed in a new regressive cycle. The first lived from 2016 to 2018, after in 2015 reached a turnover of 20.24 million euros. The second is being experienced now, after in the pandemic 2020 it reached its historical maximum by billing 26.05 million euros. Since then, the following two years have been of regressive evolution returning to the magnitudes of a normalized scenario. Last 2022, Fitnessdigital had revenues, as recorded in the commercial registry, of 14.50 million euros, 32% less than the 21.26 million euros registered in 2021.
Despite this improvement in relation to the years immediately prior to the outbreak of covid, it is striking that the figures for 2022 are notoriously below those achieved by this operator in 2015 and 2016. It is clear that Fitnessdigital is accusing, on the one hand, the effects of the new retail scenario, especially online retail, but also the proliferation of the Spanish gym scenario.
Despite this evolution in sales, Fitnessbit closed 2022 again with net profits, as in the previous five years, according to data from the commercial registry. Those of last year stood at 196,921 euros. A figure that is substantially lower than that of the previous two record years, but which is even lower than the 223,816 euros recorded in profits after taxes in 2019. （By CDM）
9. Forme Touts ‘Transformational’ Plan To Acquire Connected Fitness Biz
Interactive Strength Inc., known as Forme, has announced its intention to acquire an undisclosed connected fitness equipment business through a non-binding letter of intent and exclusivity agreement. Forme, a smart home gym manufacturer and virtual personal training service provider, has seen a significant decline in its stock price since its April IPO. Despite these challenges, Forme believes that this potential acquisition will accelerate its path to commercialization. The deal is anticipated to be finalized in the fourth quarter of this year.
Forme's internal projections indicate that the combined gross revenue of the fitness company is expected to exceed $10 million in 2023 and over $25 million in 2024. By the fourth quarter of 2024, the company aims to achieve positive cash flow from the combined business. The acquisition is viewed as transformational and is expected to create substantial value for shareholders.
Trent Ward, co-founder and CEO of Forme, emphasized that the acquisition will provide immediate scale across all cost centers, leading to a high-growth, profitable platform for selling connected fitness equipment and digital fitness services in both B2B and B2C channels. The transaction is also expected to open up cross-selling opportunities and access to new markets for both Forme and the connected fitness company.
Forme has initiated its due diligence review of the target acquisition. Despite reporting a net loss of $13.6 million for the second quarter of 2023, Forme remains optimistic about the potential benefits of the acquisition, particularly in expanding its presence in the B2B channel. Forme's IPO earlier this year faced challenges, with its shares experiencing a significant decline since going public.
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Author:
Roger Yao （cs01@fitqs.com)
https://www.fitqs.com/post/fitness-equipment-industry-news-week-36
Roger Yao
The founder of FITQS/FQC
The columnist of magzine <China Fitness Equipment>
20 years in fitness/sporting equipment OEM/ODM technical, quality control and sourcing management.