1. Major Acquisition in the Iberian Fitness Market
Providence Equity Partners has taken a major step in the fitness sector by acquiring a majority stake in Vivagym Group from Bridges Fund Management. Vivagym, under the leadership of CEO Juan del Río, has expanded significantly in the Iberian market since 2015, growing from 15 to 104 gyms across Spain and Portugal. With the backing of Providence, the chain aims to further expand, targeting a gym count of 175 by 2029. The acquisition, pending regulatory approval, promises to fuel aggressive growth and enhance competition in the low-cost gym market.
2. IFIT New Partnership to Broaden Access to Fitness Equipment
Acima Leasing has partnered with iFIT Inc., integrating lease-to-own payment options on iFIT’s platforms, including NordicTrack® and ProForm®. This initiative aims to make premium fitness equipment accessible to a broader audience, particularly those with limited access to traditional credit. This strategic alliance, leveraging Acima's high approval rates and iFIT’s robust product offerings, is anticipated to boost customer conversion and foster brand loyalty.
3. Garmin Reports Stellar Performance in Fitness Wearables
Garmin has exceeded Wall Street expectations for the first quarter of 2024, with a notable 39% rise in profits and a 20% increase in sales year-on-year. Fitness wearables emerged as the top-performing category, witnessing a 40% surge in sales, propelled by strong demand for its latest products like the Forerunner 165 Series. The company's shares jumped 9.6% following the announcement, reinforcing its strong market position.
4. Stages Cycling Shuts Down Operations
In a significant industry shakeup, Stages Cycling has ceased operations and laid off all employees amidst financial struggles and a lawsuit from Giant Bicycles over unpaid dues. Founded in 2009, the company was renowned for its innovative power meters and indoor cycling products. The closure marks a considerable retreat in the cycling sector, leaving customers and partners navigating the aftermath.
5. Leadership and Staff Changes at Peloton Amid Financial Struggles
Peloton is on the hunt for a new CEO as Barry McCarthy steps down to become a strategic advisor, coinciding with a 15% reduction in its workforce. Following a challenging transition from pandemic-driven growth, Peloton's latest earnings report showed a decline in revenue, prompting significant operational adjustments. The company is refocusing its strategy on fitness content and exploring new business avenues, including partnerships in the hospitality sector.
This week's developments highlight significant shifts in the fitness equipment industry, from major acquisitions and partnerships to strategic restructurings and closures, reflecting the dynamic nature of this competitive market.
Author: Roger Yao (cs07@fitqs.com)
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.
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