Connected fitness company Hydrow, known for its pricey rowing machines, has seen significant growth in sales and recently acquired a majority stake in strength training company Speede Fitness. Hydrow’s CEO and founder Bruce Smith will step back from day-to-day operations, with President and CFO John Stellato taking over. Hydrow has raised over $300 million in funding and counts professional athletes and celebrities as investors. The acquisition of Speede Fitness allows Hydrow to expand into the growing strength training segment of the fitness market as consumers shift away from traditional cardio exercises.
Gymgoers are increasingly seeking strength training over cardio exercises, with companies like Planet Fitness noting this trend by slowing the replacement of cardio equipment to invest in strength training. Life Time fitness also highlighted the shift towards building muscle as a top goal for many. Speede Fitness offers a connected strength training machine with advanced technology such as AI-powered cameras, sensors, and a touch screen. The acquisition of Speede Fitness supports Hydrow’s mission to become a whole-body health company, with plans to launch a new consumer product next year.
While Hydrow experiences sales growth and expands its product offerings, competitor Peloton has faced challenges in recent quarters. Peloton, which once considered acquiring Hydrow, is now struggling financially and has become an acquisition target itself. Peloton’s declining sales and losses have led to private equity firms considering taking the company private. Despite Peloton’s struggles, Hydrow has managed to grow its sales, with unit sales of its rowing machines increasing this year and a significant jump in sales on Amazon.
The growth of Hydrow raises questions about the broader at-home fitness market and whether Peloton’s issues are more related to internal challenges or changes in consumer preferences. With consumers favoring strength training over traditional cardio exercises, Hydrow’s move to acquire Speede Fitness and expand its offerings aligns with current fitness trends. Peloton, on the other hand, has focused primarily on cardio machines, which may be less appealing to consumers. The company’s recent product launches, including the Peloton Row and Peloton Guide, have not received much attention or traction in the market.
Peloton’s challenges with sales and product reception contrast with Hydrow’s success in the connected fitness space. Hydrow’s acquisition of Speede Fitness positions the company to tap into the growing strength training market, appealing to consumers’ preferences for a more holistic approach to fitness. As the fitness industry evolves and shifts towards strength training, companies like Hydrow are adapting their offerings to meet changing consumer demands and capitalize on emerging trends.
