Hydrow, the connected fitness company once sought after by Peloton, is experiencing sales growth and diversification with its recent acquisition of a majority stake in strength training company Speede Fitness.
As the fitness landscape shifts towards weight training, Hydrow aims to expand its offerings beyond its signature rowing machines, which range from $1,700 to $4,000, by venturing into strength training.
In a strategic move, Hydrow announced the transition of CEO and founder Bruce Smith to the role of chairman of the board, with President and CFO John Stellato assuming leadership responsibilities.
With substantial backing from private equity firms like Constitution Capital and L Catterton, Hydrow has amassed over $300 million in funding, attracting investments from notable figures like Kansas City Chiefs’ Travis Kelce and musician Justin Timberlake.
The acquisition of Speede Fitness marks Hydrow’s entry into the burgeoning strength training market, aligning with shifting consumer preferences away from traditional cardio exercises towards weightlifting.
This trend is evident in fitness industry giants like Planet Fitness and Life Time Fitness, which have observed increased demand for strength-focused workouts.
Speede Fitness offers a connected strength training machine equipped with advanced technology, including AI-powered cameras, sensors, and a touchscreen interface. This acquisition underscores Hydrow’s commitment to becoming a comprehensive wellness brand, with plans to introduce consumer products next year.
While Hydrow thrives, Peloton faces challenges in reviving its business amidst declining sales. Once considered a pioneer in the connected fitness market, Peloton now grapples with sluggish demand and financial losses.
Despite introducing products like the Peloton Row and the AI-powered Peloton Guide, Peloton’s efforts have yet to resonate with consumers as effectively as Hydrow’s expansion into strength training.
Hydrow’s success prompts reflection on Peloton’s struggles, raising questions about the broader at-home fitness market and Peloton’s internal dynamics.
With consumers gravitating towards strength training and Hydrow’s impressive sales growth, Peloton faces the challenge of adapting to shifting fitness preferences while addressing its internal product and marketing strategies.
