Technogym saw a slowdown in its European business in 2019, which the Italian company blamed on uncertainty in the U.K. due to Brexit, weakness in Russia, and a difficult comparison base in Italy with 2018, when key accounts made large purchases from the big Italian supplier of fitness equipment.

However, the company still saw its overall revenues grow by 5.5 percent to €668.9 million, driven by the international market. In constant currencies, sales went up by 3.8 percent. More than 90 percent of the company’s revenues were generated outside of Italy, with about 40 percent of the total coming from outside Europe.

The operating margin declined by 0.7 percentage points to 16.1 percent, due to an increase in personnel costs, mainly driven by increasing focus on digital and contents. Net income declined by 9.6 percent to €83.4 million

Revenues declined by 8.0 percent in Italy to €58.7 million and inched up by 1.7 percent in the rest of Europe to €330.3 million. Asia-Pacific stood out, rising by 16.1 percent to €118.3 million, followed by North America with a growth of 13.4 percent to €87.7 million. Sales went up by 9.9 percent to €49.9 million in the Middle East, India and Africa and by 15.3 percent to €24.0 million in Latin America.

Field sales, which represented 74 percent of turnover, rose by 5.0 percent in euros. Sales to distributors and inside sales climbed by 6.5 percent and 4.6 percent, respectively. Retail sales jumped by 24.3 percent, but only accounted for 1 percent of total revenues. The company said this segment still has a marginal weight in its business model, retaining for the moment a showroom function to support the other main sales channels.

During the quarter, Technogym launched a new immersive training experience accessible both in existing clubs or in new boutique fitness studios, called Skillathletic.

Technogym did not give an outlook for 2020 due to uncertainty surrounding the coronavirus outbreak, particularly because it is the official supplier of exercise equipment to the athletes for the Tokyo Olympics, which has been postponed. However, it confirmed medium-term guidance of constant and sustainable growth, adding that it expects to see most of its future growth from international markets, especially North America and APAC.