Fitness Equipment Industry News Blog - 20240730
1. Basic-Fit España Doubles Revenue in H1 2024
Basic-Fit España reported a revenue of €55.3 million for the first half of 2024, marking a 108.8% increase compared to the same period in 2023. The company now operates 201 gyms in Spain, reflecting a 79% growth with 89 new openings in the past year. Internationally, Basic-Fit recorded a 17% revenue increase, reaching €584.4 million. EBITDA rose by 23% to €266.2 million, and the company returned to profitability with a net profit of €4.2 million. Membership grew by 13% to 4.1 million, with an average club having 3,175 clients. Basic-Fit aims to reach 1,575 clubs and €1.25 billion in revenue by the end of 2024.
2. US Escalade Posts Q2 Sales and Profit Declines
Escalade, Inc. experienced a 7.7% year-over-year decline in net sales for Q2 2024, totaling $62.5 million due to reduced consumer demand and inventory de-stocking. However, there was growth in brands like Stiga Table Tennis, Bear Archery, and Brunswick Billiards. Gross margin fell to 24.2%, and operating income decreased to $4.5 million. Net income for the quarter was $2.8 million, down from $3.6 million in Q2 2023. The company generated $13.3 million in cash flow from operations and reduced total debt to $43.2 million. Escalade aims to optimize costs and improve margins in the latter half of 2024.
3. CPSC Recalls Camzimo Bicycle Helmets
The U.S. Consumer Product Safety Commission (CPSC) has issued a recall for Camzimo Bicycle Helmets, citing failure to meet federal safety standards. The helmets, sold online from September 2021 to May 2024, did not comply with impact attenuation, retention system strength, and labeling requirements. Consumers are advised to cut the straps and dispose of the helmets. The seller, Shanxixijuanguojimaoyiyouxiangongsi (Amzomn), has not agreed to a recall or remedy for consumers.
4. Smart Fit Acquires Cycling Chain Velocity
LatAm gym operator Smart Fit has acquired indoor cycling chain Velocity for R$183 million, expanding its footprint by 82 units and planning to reach 200 sites in Brazil before considering international expansion. The acquisition is part of Smart Fit's growth strategy, supported by a R$450 million bond sale for working capital. Velocity will be integrated into TotalPass, enhancing reach and revenue. Competitors like Selfit and Bluefit are also expanding, reflecting a robust growth trend in the Brazilian fitness market.
5. Kettler Expands Bicycle Factory in Germany
Kettler Alu-Rad has opened a new state-of-the-art bicycle factory in St. Ingbert, Germany, with an annual production capacity exceeding 100,000 bikes. This move comes as part of the company’s strategy to meet increasing demand and improve production efficiency. The new facility emphasizes sustainability and rapid delivery, breaking the perception of Asian assembly. Kettler plans to grow its market presence in Europe, particularly targeting the Netherlands, while continuing to support over 500 dealers in Germany.
6. PLAE Enters Australian Market with Olympic Partnership
US-based fitness equipment company PLAE has expanded into the Australian market, becoming the official supplier for the Australian Olympic team. PLAE will provide advanced fitness equipment for the athletes' village at the Paris 2024 Olympics. This partnership enhances PLAE's market presence in Australia, where it already has a significant footprint, and aligns with its goal to support elite athlete performance globally.
7. German Sports and Camping Goods Sales Surge by 41.5%
From 2013 to 2023, sales in Germany's sports and camping goods sector increased by 41.5%, outpacing the overall retail growth of 9.1%. Despite declines in 2020 and 2021 due to the pandemic, the sector rebounded with strong sales growth in 2022 and 2023. The production value of sports equipment also rose by over a third, reaching €780.3 million in 2023. Germany's sports services sector saw a 19.3% increase in employment over the past decade, with young professionals constituting a significant portion of the workforce.
8. Chinese Fitness Brands Gear Up for Paris Olympics
Several Chinese fitness brands are set to support the Paris 2024 Olympics. Shuhua Sports, a long-time supplier for Team China, will provide advanced training equipment featuring innovative technologies. Red Double Happiness will supply ping pong tables, and Double Fish will provide official ping pong balls. Hebei Yinglio will contribute flooring for competition venues, while Zhangkong Barbell and Taishan Sports will provide weightlifting equipment and bicycles, respectively. These brands aim to showcase Chinese manufacturing prowess on the global stage.
By Roger Yao (cs01@fitqs.com) from Shanghai, China
Stay tuned for more updates and insights from the fitness equipment industry in next week's report.
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