Connected fitness company Hydrow, which Peloton attempted to purchase during the peak of the COVID-19 pandemic, has announced significant growth in sales and the acquisition of a majority stake in strength training outfit Speede Fitness. This development occurs as gym-goers shift away from traditional cardio exercises and opt for weight training instead. Hydrow’s CEO and founder Bruce Smith is relinquishing his daily duties to the President and Chief Financial Officer John Stellato, with Smith assuming the role of chairman for the firm. Hydrow, renowned for its high-end connected rowing machines valued between $1,700 and $4,000, has garnered backing from prominent private equity investors like Constitution Capital and L Catterton. Notably, NFL player Travis Kelce and singer Justin Timberlake are among the company’s investors.
Speede Fitness, whose training equipment bears some resemblance to BowFlex, employs sophisticated technology, including AI-powered cameras, sensors, and a sizable touchscreen display. The acquisition follows a trend observed by fitness chains like Planet Fitness and Life Time, where an increasing number of customers express a preference for building muscles instead of engaging in cardio activities. Planet Fitness reported that it would replace its cardio equipment gradually due to budget constraints, while Life Time fitness disclosed that approximately 34% of its respondents in 2024 stated that constructing muscles was their top priority, representing a rise of more than 3% from the previous year.
Hydrow’s acquisition and sales surge occur as Peloton, widely regarded as the creator of the connected fitness sector, confronts challenges in reversing its dwindling fortunes. During the apex of the COVID-19 pandemic, Peloton attempted to buy Hydrow instead of developing its rowing machine. Peloton has yet to respond to a request for comment made by CNBC. Peloton presently faces a prospective acquisition bid from various private equity firms following its recent publication of disappointing financial results, which included plummeting revenues and losses. Peloton has acknowledged that demand for its fitness equipment has decreased as buyers become reluctant to commit to expensive products. However, Hydrow’s success amidst Peloton’s woes raises doubts concerning the root cause of Peloton’s difficulties, particularly given that Peloton’s own members appear to be gravitating towards strength training programs instead of its cycling and jogging classes, which are presently the most popular choice for digital participants and the second-most preferred option among individuals possessing Peloton equipment. In September 2022, Peloton unveiled its rowing machine, the Peloton Row, although the company has done relatively little to promote or feature the $3,000 gadget. Peloton’s guidance system, the Peloton Guide, has garnered scant attention, despite receiving minimal publicity. In Peloton’s third-quarter investor report, the guide was referenced just once, and it related to the company’s $9.1 million inventory write-off for the product.
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