Americans are losing interest in cardio equipment — and that's causing fitness companies to sweat, Nathan writes.

Why it matters: The home fitness industry was already reeling from slumping sales when exercisers returned to the gym after pandemic shutdowns — and now comes a shift in how people want to work out.

Driving the news: BowFlex filed for Chapter 11 bankruptcy protection yesterday amid plummeting sales, a move made to facilitate a company sale.

The big picture: Businesses that bet big on the home fitness boom, like Peloton and BowFlex, are taking on water.

• But it's not just an issue of too much supply. Interest in cardio equipment is fading, and that's a problem for companies that rely on people working up a sweat.

BowFlex gets more than 46% of its revenue from cardio products, which experienced a 28.5% drop in direct-to-consumer sales for the last nine months of 2023, compared to the same period a year earlier.

• Direct-to-consumer strength product sales, meanwhile, grew 7.4% in the period, primarily driven by higher demand for home gyms, the company said.

Long term, the growth in the global strength equipment segment is expected to outpace that of the broader fitness equipment market through 2032, according to Precedence Research, a market insights firm.

What they're saying: It's a generational thing.

• Younger exercisers are more interested in weights and stretching, Planet Fitness interim CEO Craig Benson said in January at an industry conference.

The bottom line: The cardio equipment market is running in place.

Go deeper

Brace yourself for the season of higher gas prices, Axios' Kelly Tyko writes.

By the numbers: The nation's average gasoline price for unleaded climbed to $3.378 this afternoon, up 24.8 cents from February's monthly average of $3.13, GasBuddy data shows.

• The average price a year ago was $3.402 per gallon, per AAA data.

Zoom in: "US refining has been stunted by severe weather and some power losses at key plants. We may in the next few days see US retail gas prices at a higher number than year-ago," Tom Kloza, global head of energy analysis at OPIS, told Yahoo Finance.

What's next: Stations will soon switch to summer blend, which is more expensive to make.

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🚙 Tesla stopped production at its plant in Germany after a suspected arson attack on nearby electrical infrastructure. (Automotive News)

❌ Meta's Facebook, Instagram, Messenger and Threads experienced a worldwide outage today due to what the company called a "technical issue." (WSJ)

🪙 Bitcoin hit a new all-time high. (Axios)

Leaner inventory at Target stores has meant fewer markdowns and should translate into stronger future profits, company officials said today.

By the numbers: Target reported a 58% increase in fourth-quarter profits, beating Wall Street expectations and driving the stock up 12% today, Kelly and Nathan write.

• Comparable sales fell 4.4% in the fourth quarter — the third straight quarter of declines — but that beat Bank of America's estimate of a 5% drop.

Between the lines: The company attributed its better-than-expected performance to several factors, including "lower markdowns and other inventory-related costs, lower freight costs, lower supply chain and digital fulfillment costs, and favorable category mix."

Go deeper

The cardio vs. weights debate erupted during the Axios business team meeting today when discussing our 1 big thing, Nathan writes.

The intrigue: The fireworks began after discussing the comment from Planet Fitness' Benson that people are stepping over the cardio machines to hit the weights.

• The Gen Xers on our team were skeptical. They like their cardio, apparently.

💭 Nathan's thought bubble: I, for one, go for a mix of cardio and weights for my workout. I'm no biology expert, but isn't that best for the body?

What say you, Closer readers? Have you lost interest in cardio? Is it all about strength training for you these days?

• Help us settle this debate at [email protected].

"We see it more a question of WHEN, and from WHERE [Mexico], not IF at this point."