| News & Know How | news
<third-Quarter Metrics Mirror Economic Pressures
economy raises Town Sports International Holdings, Inc. (nASDAQ: CLuB), the Manhattan-
Fitness Equipment
based chain that operates 165 clubs in the u.S. and three in Switzerland,
reported income of $120.4 million for 3Q ’09, a 6% drop from the same
quarter in ’08. The company had operating income of $1.4 million for the
Concerns
period, down 88% from 3Q ’08, and posted a net loss of $1.5 million, vs. net
Business down, according to
income of $3.8 million in 3Q ’08.
SGMA and major manufacturers
“Our third-quarter results were in line with our expectations,” observes
CEO Alex Alimanestianu. “We look forward to benefiting from stronger
operations and an improving economy.” —|
> The 2008-2009 economic recession has
taken its toll on fitness equipment manufacturers,
according to the 2009 edition of Tracking the
Fitness Movement, a report published by the
think Pink for
Sporting Goods Manufacturers Association
(SGMA), an industry trade organization based
Breast Cancer Research
in Silver Spring, Maryland. For the first time
in 20 years, wholesale equipment sales have
declined, from $4.7 billion in 2007 to $4.2 billion
C
YBEX International, Inc. (NASDAQ: CYBI), the Medway, Massachu-
setts-based equipment manufacturer, raised more than $35,000
for breast cancer research during its Pink Ribbon Run in October,
in 2008, a 10.6% drop.
which featured its unique, special-edition pink 750T treadmill. The
At the same time, the report notes, fitness-
company offered to donate 10 cents for every mile logged on the machines
participation rates actually increased in a
during the month, and club members dutifully racked up over 250,000.
number of categories.
The company also contributed an additional $10,000 to a breast
“The fitness industry wasn’t immune to the
cancer research effort in Mexico.
side effects of the tough economy,” observes
Thus far, CYBEX has sold some 300 of its pink treadmills to more
Tom Cove, the president of the SGMA. “But
than 150 health clubs, YMCAs, and other fitness centers, nationwide.
because people are aware of the importance
One of them, BodyScapes Fitness in Brookline,
of a regular fitness regimen, we expect the
Massachusetts, kicked off Breast Cancer Awareness
fitness industry to regain strength as the economy
Month in October by inviting celebrity guests—New
heals and home-starts improve.”
England Patriots cheerleaders, Ms. America
Among the report’s other findings: Bridget Cleary, and Boston-TV meteorolo-
• Treadmills and elliptical crosstrainers are
gist J.C. Monahan and reporter Shiba
the two most popular pieces of equipment, with
Mussell—to try out its new 750T.
2008 sales of $870 million and $687 million,
BodyScapes donated $1 for each mile
respectively.
run during the month to The Ellie Fund,
which provides services for breast
• The top five fitness activities are walking for
cancer patients and their families,
fitness, treadmills, hand weights, running/
and 5 cents per mile for the remainder
jogging, and weight-resistance machines.
of 2009. BodyScapes also has a
• The fitness activity with the largest one-year
pink treadmill at its Southborough,
jump in ’08 was step aerobics, which posted a
Massachusetts, facility.
21% increase.
In all, clubs raised an additional
$20,000-plus with their own
Financial results for the third quarter of 2009 for
fundraising initiatives. —|
several of the industry’s major manufacturers
echoed the sentiments of the SGMA study. The
>
Short Takes
Brunswick Corporation (nySE: BC), which owns Celebrating a Golden Moment
Life Fitness, reported that its fitness division had
The Golden Door, in San Marcos,
sales of $126.8 million for the quarter, down 22%
California, which, in many ways, laid
from the same period in ’08. The Amer Sports
the foundation for, and has continued to
Corporation, the publicly held Finnish company
contribute to the development of, the
that owns Precor, said its fitness-segment rev-
modern spa industry, has celebrated
enues were $66.2 million, down 19% from 3Q
its 50th anniversary in business. Today,
’08. And CyBEX International, Inc. (nASDAQ:
according to the International Spa
CyBI), had income of $29 million for 3Q ’09, a Association (ISPA), there are more than
19% decline from the same period in ’08. —| 18,100 spas in the u.S., serving some
32 million active spa-goers. —|
18
Club Business International | JAnuARy 2010 |
www.ihrsa.org
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