Hydrow, a connected fitness company known for its pricey rowing machines, has seen growth in sales and recently acquired a majority stake in strength training company Speede Fitness. The company’s CEO and founder, Bruce Smith, will be stepping back from day-to-day operations, with President and CFO John Stellato taking over. Hydrow’s acquisition of Speede Fitness comes as gymgoers are shifting towards weight training over cardio exercises, a trend reflected in the fitness industry as a whole. The company has raised over $300 million in funding and has attracted investments from professional athletes and celebrities.
The acquisition of Speede Fitness allows Hydrow to expand into the growing segment of strength training, as consumers are increasingly seeking more strength-focused workouts. This trend is evident in surveys conducted by companies like Planet Fitness and Life Time Fitness, showing a preference for building muscle over traditional cardio exercises. Speede Fitness offers a connected strength training machine with advanced technology such as AI-powered cameras, sensors, and a touchscreen interface. Hydrow sees this acquisition as a significant step towards becoming a whole-body health company and plans to launch a new consumer product next year.
While Hydrow is experiencing growth and diversification in its offerings, competitor Peloton is facing challenges with declining sales and losses. Peloton, known for its connected fitness equipment, has struggled to maintain demand as consumers shift away from big-ticket items. In contrast, Hydrow has seen a 23% increase in unit sales for its rowing machine this year and a significant sales increase on Amazon. The discrepancy in performance between Hydrow and Peloton raises questions about the broader at-home fitness market and Peloton’s internal issues, particularly its focus on cardio machines at a time when consumers are more interested in strength training.
Despite Peloton’s efforts to launch new products like the Peloton Row and Peloton Guide for at-home strength training, these offerings have not received as much attention or success as anticipated. The Peloton Row, released in 2022, has not been heavily promoted, and the Peloton Guide, an AI-powered strength training device, resulted in a significant write-down in inventory. Peloton’s lackluster performance and struggles to adapt to changing consumer preferences have made it a target for private equity firms considering taking the company private. In contrast, Hydrow’s strategic acquisition and focus on expanding its product offerings have contributed to its continued growth and success in the competitive connected fitness market.
With consumers increasingly prioritizing strength training over cardio exercises, companies like Hydrow are seizing the opportunity to diversify and meet shifting demands. Hydrow’s expansion into strength training through the acquisition of Speede Fitness reflects a broader trend in the fitness industry towards a more comprehensive approach to health and wellness. As Peloton faces challenges in maintaining sales, Hydrow’s success highlights the importance of adapting to consumer preferences and exploring new opportunities for growth in the evolving fitness market. Through strategic investments and a focus on innovation, Hydrow is positioning itself as a key player in the connected fitness industry.
