1. Escalade Completes Sale of Mexican Facility; CEO Walter P. Glazer, Jr. to Retire
Escalade, Inc. (NASDAQ: ESCA) has finalized the sale of its Rosarito, Mexico facility and related assets, consolidating operations into other North American locations. The move is part of Escalade's strategic plan to optimize operational efficiency and asset utilization. The proceeds from the sale will be used to reduce the company’s variable rate debt. In related news, CEO Walter P. Glazer, Jr. announced his retirement effective at the end of 2024. Glazer, who has been a key figure in the company since 1991, will continue to serve on the board post-retirement, subject to shareholder approval.
2. Keep Launches First Smartwatch, Keep Watch Pilot 1
On August 10, Chinese biggest sports & Fitness APP, Keep, introduced its first smartwatch, the Keep Watch Pilot 1, priced at 1,299 RMB. The smartwatch features advanced technology including 17-day battery life, eight-channel heart rate monitoring, and dual-frequency satellite positioning. It aims to provide real-time running guidance and personalized exercise assessments, leveraging Keep’s extensive user data and intelligent analysis algorithms. Chinese marathon runner Zhang Deshun has been named the brand ambassador for the product. The watch will debut at the Paris Olympics marathon and is now available for pre-order on the Keep App’s official store.
3. Peloton and Google Fitbit Partner to Expand Fitness Content Reach
Peloton (NASDAQ: PTON) announced a multi-year partnership with Google Fitbit, allowing Fitbit Premium members in the U.S., UK, Canada, and Australia to access a selection of Peloton’s classes. This collaboration, set to begin in September, includes classes across various fitness categories, such as strength training, Pilates, and cycling. The partnership aims to make Peloton's premium fitness content more accessible while offering discounts on Google Pixel watches and Fitbit Charge 6 devices to Peloton members. This move further solidifies Peloton’s presence in the digital health and fitness space.
4. UFC Returns to China with November Event in Macau
The UFC (Ultimate Fighting Championship) announced its return to China with a fight night scheduled for November 23 in Macau. The event, to be held at the newly built Galaxy Arena, marks UFC’s first event in China in four years. Macau previously hosted UFC events in 2012 and 2014. UFC's Asia-Pacific head Kevin Chang expressed excitement about returning to the region, highlighting the significant growth of the UFC brand since its last event in Macau. The upcoming event is expected to draw considerable attention from MMA fans in the region.
5. Mindbody ClassPass Plans IPO in 12-18 Months
Mindbody ClassPass, a leading fitness and wellness marketplace, is preparing to go public within the next 12 to 18 months. The company, which was taken private in 2019 after being acquired by Vista Equity Partners, has retained Goldman Sachs as its lead banker for the IPO. CEO Fritz Lanman announced that both Mindbody and ClassPass are experiencing growth and profitability, positioning the company well for an IPO. The company anticipates a 20% revenue growth in 2024, driven by the increasing demand for fitness and wellness services post-pandemic.
6. REP Gympass to Launch Subscription Service for Local Gyms
REP Gympass, a new gym subscription service, is set to launch in September, providing access to a network of locally owned gyms across the U.S. For a monthly fee, users can explore different gyms without committing to a long-term membership. REP Gympass aims to support independent gyms by offering them a share of the subscription revenue, with 70% of the proceeds going to partner gyms. The service is designed for fitness enthusiasts, particularly those who travel frequently or prefer specialty gyms over large chains. REP Gympass is targeting 100 partner gyms at launch, with plans to expand further.
By Roger Yao (cs01@fitqs.com) from Shanghai, China
Stay tuned for more updates and insights from the fitness equipment industry in next week's report.
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