Barry's Bootcamp announces new investment while others exit the boutique fitness category.

• Barry's Bootcamp announced on Monday new investment from Princeton Equity Group.
• Private equity investments for Barry's have been ongoing for nearly two decades, with firms such as LightBay Capital and North Castle Partners contributing to the company's growth.
• In 2024, more than 7 million visits were recorded at Barry's 89 global studios.

On Monday, Princeton Equity Group announced new investment in Barry's Bootcamp as the boutique fitness sector begins to falter.

"Joey Gonzalez, Barry's co-CEO, stated in an interview with CNBC that the success of their boutique fitness is due to their premium market positioning. They aim to minimize any brand dilution and always strive to enhance the customer experience."

Gonzelez stated that the funding round will prioritize investing in enhancing client experience and establishing a strong brand identity in a highly competitive market. Barry's provides intense running, weightlifting, and training classes in its distinctive red-lit studios.

In 2024, more than 7 million visits were recorded at Barry's 89 global studios.

Princeton is a private equity firm that specializes in franchising and consumer services, with $1.2 billion in assets under management. They have invested in various wellness brands, including Massage Envy and D1 Training.

The size of the investment was not disclosed.

Private equity investments for Barry's have been ongoing for nearly two decades, with firms such as LightBay Capital and North Castle Partners contributing to the company's growth.

Barry's will use the investment to fund expansion in 12 cities this year, including Charleston, South Carolina; Hoboken, New Jersey; and Salt Lake City, as well as international locations in Madrid, Athens, and Dublin.

""By consolidating our operations in the UK and Canada through this partnership, we can create a closely knit community and foster efficiencies," Gonzalez stated."

Despite the global boutique fitness studio market being valued at nearly $48 billion in 2023 and projected to reach $86 billion by 2030, several high-profile brands have struggled to attract customers.

Last year, the franchisor of health and wellness brands divested from two struggling boutique chains, Stride Fitness and Row House.

According to Jefferies analyst Randal Konik, industry headwinds such as macroeconomic concerns could lead to a decrease in consumer spending, and fitness has become more important as people prioritize health and wellness.

""Strength training has boosted demand for gym memberships and fitness classes, with a focus on health and wellness post-Covid," Konik stated."

Wolfmeyer, a Piper Sandler analyst, identified "uncertainty about unit growth" at Xponential as a key reason to avoid investing in the stock.

Gonzalez says his company is bucking the trend.

"Gonzalez stated that Barry's is one of the originals and takes a back-to-basics approach to fitness with efficacy at its core. He emphasized that Barry's has remained true to its core competency, which is providing fitness experience, an immersive experience, and a positive member experience."