FinancialNewsMedia.com News Commentary
PALM BEACH, Fla., June 12, 2023 /PRNewswire/ — The global online/virtual fitness market has shown substantial growth over the past few years and is expected to continue for years to come. The COVID-19 outbreak had a positive impact on the growth of the online or virtual fitness market due to the imposition of lockdowns led to the closure of many fitness centers and gyms. As a result, in-person workouts were replaced by digital at-home exercises. In addition, owing to the increasing demand for online classes, many gyms and health club providers adopted online services. In the coming years, health club providers will be required to adopt a hybrid or multichannel approach which will include both in-person and remote exercise sessions for the customers. Online or virtual workout is next generation fitness revolution. It is a convenience-based fitness/wellness service to the clients to access a trainer or instructor online instead of visiting the fitness facility. Usually, the training videos that are provided on the online dashboard or fitness app are managed by the instructor. The sensors in smartphones and wearable allow various virtual fitness applications such as sleep monitoring and running rhythm tracking to improve users’ life styles and health. The various forms of online or virtual fitness offerings enable accessibility of health & wellness to every individual from shift workers to the housewives, and any person who may not keen or able to visit the gym. A report from Allied Market Research projected that the global online/virtual fitness market was valued at $14.9 billion in 2022, and is projected to reach $250.7 billion by 2032, growing at a CAGR of 32.7% from 2023 to 2032. Active Companies from around the markets with current developments this week include: Interactive Strength Inc. d/b/a FORME (NASDAQ: TRNR), SIGNA Sports United N.V. (NYSE: SSU), Xponential Fitness (NYSE: XPOF), Lifetime Brands, Inc. (NASDAQ: LCUT), Nautilus, Inc. (NYSE: NLS).
The report said: “Rise in need for advanced fitness sessions to achieve physical fitness, growth in interest of health insurance providers in online/virtual fitness services to reduce health insurances costs, increase in demand for healthy foods, lack of time to attend training sessions at fitness institutes, and surge in demand for AR & VR based fitness boost the growth of the global online/virtual fitness market. In addition, shutdown of gyms and studios due to ongoing COVID-19 pandemic situation has positively impacted the growth of the online/virtual fitness market. However, no real interaction with the instructor and interruption in the flow of the class due to tech glitches hampers the online/virtual fitness market growth. On the contrary, growth in popularity of online fitness programs among elderly is expected to offer remunerative opportunities for expansion of the online/virtual fitness market during the forecast period (2032).”
Interactive Strength Inc. (NASDAQ: TRNR) BREAKING NEWS: Interactive Strength Inc. Secures $15M Credit Facility to Support Increased Demand – Interactive Strength Inc. d/b/a FORME (“TRNR” or “the Company”) announces that on June 6th the Company signed a note purchase agreement to issue senior secured notes (the “Notes”) with gross proceeds to the Company of up to $15.0 million.
The lead investor has committed to purchase at least $7.5 million of the Notes and the Notes have a two-year maturity, at 10.0% interest per annum, and with a 5.0% original issuance discount, representing a total cost of debt of 12.5% over the term of the Notes.
FORME recently announced partnerships with the luxury hotel chain Aethos and sports retail company SIGNA Sports United (NYSE: SSU). Aethos has hotels and clubs across Europe, while SIGNA is based in Germany and serves over 80 online sites. These partnerships will give FORME entry into a new market plus access to an established customer base.
“We are pleased to announce additional funding on attractive terms,” commented Trent Ward, FORME’s CEO. “As we advance commercialization of FORME’s premium smart home gyms with virtual personal training, this funding will help support our growth initiatives as we increase our prescence in the U.S and expand throughout Europe. FORME’s business model offers attractive high-recurring revenue per device, as we combine premium connected fitness hardware products with personal training and coaching. When combined with the proceeds from the IPO, we believe the proceeds from the senior loan we signed this week should fund the Company well into 2024.”
FORME recently announced partnerships with the luxury hotel chain Aethos and sports retail company SIGNA Sports United (NYSE: SSU). Aethos has hotels and clubs across Europe, while SIGNA is based in Germany and serves over 80 online sites. These partnerships will give FORME entry into a new market plus access to an established customer base. CONTINUED… Read this and more news for TRNR at: https://ir.formelife.com/
In other industry developments and happenings in the market this week:
SIGNA Sports United N.V. (NYSE:SSU), a specialist sports e-commerce company with businesses in bike, tennis, outdoor, and team sports, recently issued a trading update for the first quarter of fiscal year 2023 ended December 31, 2022. Q1 FY23 includes full contribution of businesses acquired in FY22, WiggleCRC and Tennis Express (acquisitions closed on December 14 and December 31, 2021, respectively).
The operating environment in the first quarter of fiscal 2023 was a continuation of the prior quarter, with depressed consumer sentiment and a promotional overstocked market, in particular in the bike category. In these market conditions, the acquisitions which closed in Q1 FY22 enabled SSU to deliver double-digit net revenue and customer base YoY growth, on a reported basis. Against this backdrop, the Company focused on clearing excess inventory, which significantly affected gross margin.
lululemon and Xponential Fitness (NYSE: XPOF), the largest global franchisor of boutique fitness brands, recently announced that they are thrilled to announce the renewal of their partnership, bringing an expanded selection of digital workouts to lululemon Studio. Xponential Fitness will soon be increasing the number of workouts from Pure Barre, Rumble, AKT, and YogaSix on the lululemon Studio platform. This exciting collaboration builds upon the success of the initial launch last October and further enhances the offerings available to lululemon Studio members.
lululemon Studio has quickly become a leading destination for on-demand and live-streamed fitness classes. lululemon Studio subscribers have enjoyed access to over 10,000 classes, and now they can enjoy even more variety with the increased number of workouts from Xponential Fitness brands. Not only can members of lululemon Studio stream a diverse range of workouts, featuring Pure Barre, Rumble, AKT, and YogaSix classes, but they can take advantage of discounted classes at the brick-and-mortar locations of these brands across the country.
Lifetime Brands, Inc. (NASDAQ: LCUT), a leading global designer, developer and marketer of a broad range of branded consumer products used in the home, recently reported its financial results for the quarter ended March 31, 2023.
Rob Kay, Lifetime’s Chief Executive Officer, commented, “Our results this quarter were in line with our expectations, with our core business continuing to deliver solid performance in the face of a challenging macroeconomic and consumer spending environment. Our first quarter results reflect the continued impact of reduced orders as our customers focused on rightsizing their inventory levels, with the majority of these impacts coming from our largest customers. While inflationary and macroeconomic pressures contributed to weaker end market demand, our international business has stabilized as a result of the restructuring of our European operations and the continued traction of our KitchenAid brand in European markets.”
Bowflex Parent, Nautilus, Inc. (NYSE: NLS) recently reported its unaudited operating results for the fiscal 2023 fourth quarter and year ended March 31, 2023.
“We’re pleased to deliver fourth quarter and full year results that exceeded our expectations, reflecting the strength of our Direct segment and continued momentum on JRNY® as we execute on our long-term transformation under our North Star strategy,” said Jim Barr, Nautilus, Inc. Chief Executive Officer. “We took deliberate steps throughout fiscal 2023 that enabled us to exit the year with a significantly improved inventory position and streamlined cost structure. Subsequent to quarter end, we further strengthened our balance sheet and monetized the value of certain non-core assets, enhancing our ability to manage through the current environment. These actions, coupled with our asset-light, semi-variable operating model, position us well to drive future profitable growth.”
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