The advance of wellbeing among today’s shoppers was highlighted this month with the sale of sportswear business Inov-8 on 5 August. In the three years that private equity firm Livingbridge held a £13.5m stake in it, the company grew twofold, which resulted in the shares being sold off.
Connected health company Fitbit, which develops wearable fitness trackers, has also demonstrated that the sector is thriving with a 253 per cent year-on-year revenue spike to hit $400m in Q2.
The sales surge comes following the firm’s decision to launch an IPO on the New York Stock Exchange in May 2015, which closed at the end of June. Elsewhere, Fitbit acquired health app developer FitStar in March to provide users of its devices with tailored exercise programmes.
“Our second quarter results included our highest quarterly revenue in the eight-year history of Fitbit,” said James Park, Fitbit co-founder and CEO.
“In the quarter, we introduced new features and services, expanded brand awareness, increased global distribution and further penetrated the corporate wellness market. We remain focused on continuing to deliver innovative products and services that empower people around the world to reach their health and fitness goals.”
Read more on the fitness and wearable sectors:
- European workers want wearable devices to supercharge productivity
- Upmysport secures £1m funding and partnership with Dame Kelly Holmes Trust
- Independent studios warm up to lift business from Fitness First and Virgin Active
- What Brits really think of wearable tech and how firms can spike adoption
During Q2, the firm sold 4.5 million devices, while international revenue rose by 250 per cent thanks to a 301 per cent surge in EMEA and a 292 per cent growth in APAC. Further local exposure was generated with a Kellogg’s partnership, that resulted in the Fitbit Flex product being advertised on 20 million packages across the US.
Currently Fitbit goods are sold in over 30,000 stores across North America and 45,000 shops globally, serving 54 countries. The acquisition of FitStar, meanwhile, provided a solid user base in 190 countries, led by the US, UK, Canada, Australia, Brazil and China.
Looking ahead, the firm expects Q3 revenue to be between $335m and $365m, while full year revenue is set to reach between $1.6bn and $1.7bn.
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