The search for the Fountain of Youth is a boon for investors right now.
Fitness is in…
According to a recent study released by Technavio, the global fitness equipment market is set to a post a Compound Annual Growth Rate of close to 4% by 2020. The research specifically states that the astronomical growth in the number of Fitness Enthusiasts has catapulted the Global Fitness Equipment Market to see major growth through the next decade. This forecasted progress bodes very well for shrewd investors as the smart money always looks for undiscovered companies in up and coming sectors – which could serve as ground floor investment opportunities.
Education and growing health awareness worldwide are key drivers for the growth of this market. The rising health conditions like diabetes, cholesterol and obesity have increased, leading to heart-related ailments. The rise in government and corporate initiatives to promote fitness has also been driving the market growth. Numerous corporates are providing gym services within the company premises aiding employees to balance their work and health. For instance, nearly 79% of the large companies and offer wellness programs in the Americas for their employees.
Smart investors are researching how to profit off this trend. They need look no further than XFit Brands (OTC BB: XFTB), an up-and-coming player in the burgeoning sector. XFit Brands has a methodical development of a sustainable brand platform in this dynamic industry and they are creating waves in the fitness and MMA arena.
XFTB is a leading developer and marketer of functional fitness brands with products, technology and programming, leveraged across retail outlets, wholesale channels and international markets. XFit Brands® competes in the rapidly growing functional fitness market and is a key supplier to major gym outlets. The global gym and fitness outlet reached $78 billion in revenue just two years ago according to research from the International Health, Racquet and Sportsclub Association (IHRSA). XFit Brands® has addressed the growing trend by supplying operators with its full portfolio of products allowing a one-stop-shop for major gym and fitness operators. The company offers its products under the Throwdown, XFit, and Transformations brand names. It markets and sells its products through a range channels including gyms, fitness facilities, third party catalogues, independent distributors, and licensees, as well as directly to consumers through its website.
Many keens investors are also fitness or health enthusiasts – looking to bolster both their longevity as well as portfolio.
The company has been growing at a rapid rate and has achieved several milestones in growth. Year over Year Revenue and Gross Margin Growth are key metrics which Wall Street uses to gauge growth within a particular company, relative to its sector. XFTB has blown away the street with sequential growth!
XFit Brands, Inc recently announced their highest recorded quarter in the company’s history. Highlights were a 22.5% increase in revenue for the prior nine months which were driven by new customers taking advantage of the One-Stop Shop Strategy. Recurring sales and improved supply claim partnerships increased Gross Profits to 44% – a 20 basis point increase vs the prior nine month period.
Partnerships are key for small companies to experience significant growth. But when the biggest and most recognized companies are seeking to expand a business relationship and sell those products, these are the companies with the largest potential for outsized investment gains.
Have you heard of Gold’s Gym, 24 hour fitness and Equinox? How about Crunch? Do you own any Affliction attire? I have a whole closet full of these shirts. They still attract attention for their trendy designs.
Perhaps you have shopped at Macy’s, Dillard’s and/or watched a UFC event on Pay Per View? And maybe you’re familiar with the THROWDOWN brand. If any of these are the case, you’ve been exposed to XFTB’s products.
XFTB is Receiving Increasing Interest from Partners – even Fortune 500 Companies
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STRENGTH IN NUMBERS
XFIT is seeing this incredible diversified growth strictly by creating added visibility and releasing a new series of products designed to further fuel the fitness movement and aid the enthusiast in their pursuit of health.
When you combine leading brands in MMA with Cross Training, Fitness and Programming you have a winner. Credibility is key, and judging by the following chart, XFTB is maintaining maximum visibility.
China holds nearly 20% of the world’s total population. As such it’s an ideal market to penetrate and one which holds huge potential for added revenue. XFTB recently agreed to an expanded relationship, centralized fulfilment and improved financial terms with EVB, one of the existing supply chain partners. This will further its China international expansion. EVB has been an existing partner with the Company for the past three years, and the new agreement builds on the increasing success that XFit Brands has been experiencing in executing its one-stop-shop for major fitness operators around the world. As part of the agreement, a new centralized fulfillment center will be established at the EVB facilities in Shenzhen. The new facility will consolidate XFit Brand’s manufacturing from its 5 different manufacturers across China.
XFTB also recently expanded to Saudi Arabia as well as Australia and adjacent countries. When XFit Brands expanded its partnership with Eye Fitness of Australia, they confirmed a $750,000 USD distribution purchase commitment. Fulfilment of the commitment is expected to have a material impact on the Company.
International Expansion of THROWDOWN is rapidly growing into the International Flagship Brand. Worldwide Retailers and Licensing partners are looking to capitalize on Cross Fit, UFC, MMA, Cross Training, and Functional Fitness Momentum. XFTB is current in discussions with several European and Asian countries for further Development.
XFTB is growing at an alarming rate but many investors still have not taken notice of this undiscovered opportunity.
None of this growth is remotely possible without strong leadership from the top down, helping to grow the brand. Executives with experience in well-defined name brand companies were recruited for XFIT Brands, Inc and they have created one of the strongest Teams in an OTC BB company
XFTB has already established a solid reputation within one of the most rapidly expanding sectors. They are:
- One of the leading brands in a highly dynamic, high growth segment.
- Seeing consistent growth despite being undervalued and undercapitalized
- Just Scratching the Surface with major Fitness Operators.
- The only provider with a one-stop, low cost, high-quality full service solution
- Distribution partners being established in major growth geographies
- A Portfolio of Products which compete for US Sporting Goods Retail Expansion
- An Infrastructure (People, Systems, Sourcing, Manufacturing Network, Supply Chain, Programming, etc.) which is setup purely to capitalize on growth and expand rapidly
- A vertically integrated platform creating a wealth of opportunities with new brands and roll-outs.
As XFit Brands, Inc. continues growing and gaining mainstream attention XFTB stock will be exposed to a brand new market of potential investors, who see opportunity to strike and potentially generate some of the greatest returns in their portfolio.
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