Key Highlights:
- TUT Fitness Group's monthly gross sales increased 300% since the company commenced trading on the TSX under the symbol GYM.V
- TUT has signed up international distribution partners on three different continents to broaden its sales footprint
- TUT has been granted 11 international patents around its core resistance band technology to form the basis for its OEM/ODM licensing business
VANCOUVER, BC, Feb. 17, 2022 /PRNewswire/ - TUT Fitness Group Inc. (TSXV: GYM) (Frankfurt: 7PG) ("TUT" or "the Company") announces increased sales, new product upgrades, new international distributors, an affiliate sales network, new international patent wins, and more.
TUT Fitness CEO Rob Smith presented the operational updates and milestone achievements in a letter to shareholders. The full letter can be found at https://tutfitnessgroup.com/year-in-review-2021/ and below is a summary of the key high lights.
Financial Performance
In the three months since the Company commenced trading on the TSX on October 6th, 2021, TUT's average monthly gross sales increased over 300% thanks to larger brand awareness and our marketing strategy. All of these sales have been Direct to Consumer ("DTC") sales that have transacted on TUT's US and Canadian ecommerce websites.
TUT Fitness is now broadening our sales footprint beyond DTC by leveraging an multi-channel sales strategy, part of which includes onboarding premium brand distributors in strategic markets around the world and targeting classic fitness channels, hospitality, corporate wellness and all the consumer channels in North and South America, Australasia and Europe. We are now receiving and shipping our first test orders from these distributors, while opening up new markets weekly. This has allowed us to lay down the foundation for global expansion.
Additionally, TUT has successfully launched its affiliate sales marketplace (with 50 affiliate sales partners signed to-date), and launched a presence on BestBuy.ca (which attracts 250 million visits annually to its stores and ecommerce website), to further diversify and increase sales growth.
The Company expects to file its interim financial statements and management's discussion and analysis for the three months ended December 31, 2021 within the next two weeks.
Milestone Achievements
On October 6, 2021, TUT Fitness Group successfully listed as TUT Fitness Group on the TSX Venture Exchange under the stock symbol GYM.V to raise capital and to position TUT as one of the only publicly traded home gym companies. The new capital allowed TUT to execute against our strategic plan, and to deliver on the following board mandate consisting of: a significant corporate rebrand, talent acquisition, further product development, IP expansion and an aggressive to go to market ("GTM") distribution and sales plan.
The flagship TUT Trainer(TM) product has received several re-engineering updates to upgrade its capacity from 150 lbs to 200 lbs and improve the robust feel of the device. These upgrades have paved the way for the expected product launch of TUT Trainer 2.0 and TUT Rower 2.0, currently being tested locally in Vancouver, and slated for release in Q2 of 2022. TUT 2.0 will offer many of the same unique features as TUT 1.0 while sporting a new, exciting look and feel that includes a matte graphite finish.
While TUT remains committed to our current Chinese production partner, we are in the process of diversifying our manufacturing by dual-sourcing vendors for every component of our products to ensure uninterrupted supply and to improve our negotiating stance with respect to manufacturing costs.
We were granted eleven (11) new patents in 2021 for our core resistance band technology in the United States, Europe, China, Japan, United Kingdom, Germany, France and Spain. We believe the broadening of our patent portfolio is a barrier to entry for competitors, and will be a significant growth driver for the Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) future aspects of our business.
We launched a TUT mobile app in partnership with Trainerize, a leader in online fitness training software. The app features 250+ exercise videos and sequenced fitness programs for customers, plus technology tools for independent fitness trainers to create diet and exercise programs for their clients, using our TUT app.
In terms of sales and distribution, TUT secured several significant deals: a signed a Vendor Master agreement with Best Buy Canada Ltd.; a signed a global partnership agreement with CENTRED Wellness to promote TUT Fitness to a community of 57 million consumers of wellness products and services; and we opened up TUT Fitness products to two Affiliate Marketplaces.
The Company hired a VP of International Sales & Distribution who has represented other well-known fitness brands to help us establish a global footprint of resellers and distributors.
Earned Media
The marketplace continues to be receptive to our core message, "A New Way of Working Out," which is based on our innovative resistance band technology. Positive media reviews of our TUT Trainer(TM) product so far have been published in:
- Daily Mom
- FORBES
- GarageGymReviews
- GearJunkie
- Men's Journal
- MSN
The TUT Trainer(TM) was also featured on TV's longest running game show The Price is Right, as part of their 50th Year Anniversary show.
Company Leadership
As our operations grow, TUT continues to attract top executive talent to lead us forward. Recently we filled four key executive positions:
- Stefan Sillner to the position of VP, International Sales & Distribution
- Mark Addison, to the position of Director, Strategic Sales & Partnerships
- Odai Almoqadam to the position of VP, Technology Development
- Costa Dedegikas, to the position of Chief Marketing Officer
- Noah Li-leger to VP, Manufacturing Design
The Connected Future
To meet demand for 'connected fitness' features, we are currently developing and have successfully tested our first software prototype (MVP). We believe that adding software capabilities to our TUT machines will increase sales and open new recurring revenue streams.
Fitness Equipment Market Outlook
The fitness market is seeing consolidation, product saturation, and price discounting by the large fitness brands to stay competitive and to attract new customers. TUT Fitness Group is maintaining its position that providing a high performance, (versatile) home gym at an affordable price point will break open a very large mass-market consumer audience. The Company remains confident about its market positioning and product differentiation in the USD $10.73B Global Home Gym Equipment market, despite volatile capital markets.
Please see ourInvestor Information including our TUT Investor Presentation (February 1) and TUT News Releases
ABOUT TUT FITNESS GROUP:
TUT is a Vancouver-based Canadian manufacturer of high-performance and affordable fitness products. The company has designed, patented, and manufactured one of the world's smallest (11.6 lbs), and most affordable high-performance home gyms. Incorporated in 2018, TUT is an emerging player in the connected Home Gym and Fit Tech hardware space, targeting the US$10.73B Global Home Exercise Equipment Market[1] and Online Fitness Market, expected to be US$30B by 2026[2].
TUT's flagship TUT Trainer(TM) micro gym uses patented, stackable resistance band technology (TUT Plates(TM)) to replace heavy metal weights, improving form and targeting every muscle group without adding pressure to joints or tendons. With more than 250+ exercises, the multi-functional and portable gym also includes an optional TUT Rower(TM), and offers breakthrough functional strength and cardio training that raises the bar for personal home gyms.
For further information please contact:
robs@tutfitnessgroup.com
Rob Smith
CEO, TUT Fitness Group Inc.