Technogym reported an increase in revenues of 7.4 percent to €115.6 million for the first quarter of this year, with a 6.6 percent rise in constant currencies. A large increase of 15.2 percent to €12.5 million was recorded in the Italian market. In the rest of Europe, the company grew by 7.3 percent to €66.5 million.
Sales rose by 18.7 percent in North America to €12.4 million, and by 23.2 percent to €19.4 million in the Asia-Pacific region. Technogym says this confirms interest in the wellness solutions offered by the company, mainly among the most important operators in the Premium Club, hospitality, corporate and medical segments.
However, revenues were lower in Latin America and in the Middle East, India and Africa region, where they declined by 39.9 percent to €3.5 million and by 9.0 percent to €9.6 million respectively. Technogym said the results there were affected by a rationalization of the sales network and a different order planning process.
In line with the trend in recent years, over 90.0 percent of the group's total revenues were generated outside Italy, and about 36.0 percent outside Europe.
Revenues were up by 0.5 percent to €25.9 million in the wholesale segment, by 9.5 percent to €86.7 million in the field sales segment, and by 11.9 percent to €10.2 million in the inside sales segment.
On the other hand, the company's own retail revenues dropped by 13.2 percent to €1.3 million, although this may change soon. Technogym recently opened its first flagship store in Milan, boasting more than 750 square meters on three levels. Located at 1, Via Durini, in a trendy district of the city, it offers customers tests to evaluate their physical performance and to create personalized training programs.
Meanwhile, Technogym has launched a new rowing machine, called Skillrow, whose features use its neuromuscular training technology and its patent-pending “multi-drive” technology, which allows users to switch from cardio training to a strength training mode.
The company has also announced an agreement with IBM for the integration of its IBM Watson artificial intelligence system into its cloud-based MyWellness Technogym platform to develop a “virtual coach” for its users.
The leading Italian fitness equipment company said earlier this year that it believes it can continue to grow faster than the market this year, generating higher profit margins. It plans to consolidate its strong position in European markets and to make “decisive” investments in North America.
