Latest news with #ClassicCard
Yahoo
a day ago
- Business
- Yahoo
PLNT Q1 Earnings Call: Brand Evolution and Pricing Drive Member Growth Amid Tariff Concerns
Inclusive gym franchise company (NYSE:PLNT) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 11.5% year on year to $276.7 million. Its non-GAAP EPS of $0.59 per share was 4.1% below analysts' consensus estimates. Is now the time to buy PLNT? Find out in our full research report (it's free). Revenue: $276.7 million (11.5% year-on-year growth) Adjusted EPS: $0.59 vs analyst expectations of $0.62 (4.1% miss) Operating Margin: 28.6%, up from 26.5% in the same quarter last year Same-Store Sales rose 6.1% year on year, in line with the same quarter last year Market Capitalization: $8.83 billion Planet Fitness' first quarter performance was shaped by increased member engagement, strategic marketing, and ongoing product enhancements. CEO Colleen Keating highlighted the successful rollout of a refreshed brand campaign, noting that member visits per month reached their highest level in five years. The company also saw continued growth in its higher-priced Black Card membership tier, supported by targeted promotions and a narrowed pricing gap with the Classic Card. Management attributed the quarter's results to a balanced approach of rate increases and net membership growth, with Gen Z emerging as the fastest-growing demographic. CFO Jay Stasz pointed to effective cost control and a continued focus on franchisee unit economics as key operational themes. Looking ahead, management expects its strategic imperatives—brand repositioning, enhanced club formats, and expanded strength equipment—to support steady growth despite macroeconomic uncertainty and potential tariff impacts. CEO Colleen Keating said, 'We remain steadfastly focused on unit economics,' emphasizing that tariff exposure is being managed through vendor negotiations and alternative sourcing. The rollout of click-to-cancel functionality, required by new regulations, is also expected to impact churn rates in the near term but could improve join conversion over time. With new club openings weighted toward the back half of the year and ongoing tests of premium amenities, Planet Fitness believes its value proposition remains resilient, particularly among younger consumers. Management attributed the quarter's results to targeted marketing, club format enhancements, and a mix of price-driven and membership-led growth, while flagging tariff uncertainty and a regulatory change as operational headwinds. Black Card Membership Penetration: The proportion of members in the higher-priced Black Card tier rose to 65%, driven by successful first-month-free promotions and a narrowed price gap versus the Classic Card. This shift boosted average revenue per member and reflects consumer willingness to pay for added value. Brand Campaign and Member Engagement: The refreshed 'We Are All Strong' campaign improved brand perception and increased purchase intent from both former and prospective members. Management reported a 30%+ rejoin rate and the highest member club utilization in five years, indicating stronger engagement and retention. Club Format and Equipment Mix: Nearly 1,800 clubs now feature a more balanced mix of strength and cardio equipment, a change made in response to member feedback. Franchisees have overwhelmingly opted for this new layout, and management expects the transition to be completed across all clubs by year-end. Tariff Mitigation Efforts: The company is working closely with vendors to offset the impact of new tariffs on equipment. CFO Jay Stasz detailed efforts to leverage scale, negotiate with manufacturers, and explore alternative sourcing to protect franchisee economics, stating that current tariff levels do not materially impact 2025 targets. Regulatory Change—Click-to-Cancel: The mandated rollout of online membership cancellation is underway. While expected to increase churn initially, early tests showed it can also lift join conversion rates, potentially offsetting negative effects over time. Planet Fitness expects growth to be driven by ongoing brand investment, expanded club amenities, and careful management of external risks such as tariffs and regulatory changes. Brand and Product Investments: Management is prioritizing data-driven marketing campaigns, new club layouts, and expanded strength offerings to attract new members and boost retention. The High School Summer Pass program is also set to drive seasonal member engagement and longer-term conversion. Tariff and Cost Management: The company is proactively addressing tariff-related cost pressures by negotiating with vendors, sourcing equipment from alternative markets, and leveraging its purchasing scale. While current tariffs are not expected to affect 2025 guidance, management remains vigilant about potential future increases. Regulatory and Churn Impact: The full implementation of click-to-cancel functionality is expected to cause a short-term uptick in membership cancellations, but management believes improved member experience and transparency will help sustain growth. Early tests suggest increased join rates may counterbalance higher churn. In the coming quarters, the StockStory team will watch (1) the impact of the nationwide click-to-cancel rollout on both churn and join rates, (2) the pace and profitability of new club openings in the U.S. and international markets, and (3) the effectiveness of brand and product innovations—such as expanded strength equipment and premium Black Card amenities—in driving member growth and retention. Ongoing tariff developments and franchisee sentiment will also be important markers to monitor. Planet Fitness currently trades at a forward P/E ratio of 34.8×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
CNBC
3 days ago
- Business
- CNBC
Here's why the Republican tax bill could give a jolt to gym stocks
The tax and spending bill winding its way through Congress could end up delivering a gift for exercise buffs and a boost to the stock price of their favorite gyms. The bill that passed the House of Representatives last month included a provision that would expand the allowable uses for health savings accounts to include "qualified sports and fitness expenses." HSAs work alongside high-deductible health insurance plans, and they allow savers to put away pre-tax dollars and have them accumulate free of taxes. The money can be withdrawn tax free to cover qualified medical expenses. The bill calls for allowing the HSA funds to pay up to $500 per year for an individual, and $1,000 for a joint return or head of household filing. At least for now, the tax benefit seems like it would only be a direct boost for gym stocks rather than equipment and apparel makers. "There's a distinction between kind of the online, at home versus in-person, live" said Ed Mills, Washington policy analyst at Raymond James. The gym stocks that could theoretically benefit include Planet Fitness , Life Time Group and their smaller rival Xponential Fitness , which has a market cap of less than $450 million. Of these, Planet Fitness seems to be the one that Wall Street analysts are identifying as a beneficiary, in part because its cheaper membership plans could be covered entirely by the tax-free allowance. "The impact would likely be particularly helpful for PLNT, as its monthly fee is only $15/month for the Classic Card and $24.99 for the Black Card (though it is conducting a test at $29.99), while the typical XPOF member pays > $100/month," Raymond James leisure products analyst Joseph Altobello said in a note. Similarly, Stifel analyst Chris O'Cull said in a recent note that PLNT should capture "at least its fair share" of the benefit from the policy change with the potential for even more benefits if the tax benefit makes customers more willing to accept price increases or trade up to the Black Card plan. "There are several potential questions to consider beyond the 'all else equal' scenario. First, incremental membership growth would increase the benefit of higher Classic membership pricing and any future Black Card pricing actions. Second, the ability to reimburse gym membership costs tax-free essentially equates to a price decrease for consumers, which could reduce churn rates. Finally, there could also be an impact on Black Card penetration rates if consumers prove more willing to trade up with the reimbursement," O'Cull wrote. The Stifel analyst upgraded Planet Fitness to buy from hold in that note. According to LSEG, 16 of the 18 Wall Street analysts covering the stock give it either a buy or strong buy rating. Life Time and Xponential also have buy ratings from the majority of their analysts but are covered by fewer firms. Timeline The tax bill still needs to pass the Senate and then likely another round of bicameral negotiations before it is sent to President Donald Trump for final approval. The fitness provision could fall out or change as a part of this process. Mills estimated that the bill could hit Trump's desk in August, with about 80% of the House legislation making the final cut. Given that the HSA expansion has not been controversial, Mills said the line item benefiting gyms has a "fairly high probability of staying in." Of course, the market may price in the expected benefits from the tax bill before it is signed by Trump. The gym stocks rose on Monday, and Planet Fitness is now up more than 6% over the past month. In a statement to CNBC, Life Time called the bill's provision a "low-cost, high-impact public health strategy." "As it considers the House version, we urge the U.S. Senate to retain this vital consumer health provision to promote the physical and mental wellbeing of millions of Americans," the statement said.
Associated Press
18-03-2025
- Business
- Associated Press
TAKE ADVANTAGE OF SPRING SAVINGS WITH PLANET FITNESS' PERKSFEST
Starting today through March 28, members can save big with exclusive deals from top national brands in the PF App HAMPTON, N.H., March 18, 2025 /PRNewswire/ -- Planet Fitness, one of the largest and fastest-growing franchisors and operators of fitness centers with more members than any other fitness brand, announces the return of PerksFest, unlocking exclusive deals from top brands. As part of the Planet Fitness membership, members get exclusive deals and discounts with PF Perks all year round. PerksFest is a celebration of those year-round deals where brands you love offer even more ways to save. Launching today through March 28, members can access special offers with discounts from Apple Music and Apple TV+, Crocs, HelloFresh, JLAB, 1-800 Flowers and more.* Transform your fitness journey while saving on brand-name products – join Planet Fitness today at the club nearest you or join online here. In addition to discounts and savings from well-known brands, Planet Fitness offers a high-value member experience in a Judgement Free environment where anyone is welcome and can meet their fitness goals. 'At Planet Fitness, we believe that strength comes in many forms – from the determination throughout a fitness journey to the power of saving money while pursuing your goals. Through our PF Perks program, we collectively saved our members $10 million last year alone,' said Justin Unger, Sr. Director of Partnerships at Planet Fitness. 'We look forward to continuing to provide our members with best-in-class membership experience and savings inside and outside our four walls.' As part of the national PerksFest promotion, Planet Fitness members can access these exclusive offers through March 28: AARP®: Join for just $11 for one year or $55 for five years (45% off) Apple Music: PF Black Card® members can enjoy up to three months free, Classic Card members up to two months free Apple TV+: PF Black Card® members receive two months free, while Classic Card members get one month free Bombas: Get 25% all socks + athletic gear Crocs: Get 30% off select products Factor: Get $140 off nutritious, chef-prepared meals + free shipping GNC: Take 15% off vitamins, supplements, and wellness products HelloFresh: Get a Free High-Protein Item for Life + Up to 11 Free Meals HEYDUDE: Save 30% on select comfortable and stylish footwear JLAB: Buy any item over $50 and receive a free Go POP+ MUD/WTR: Enjoy 20% off coffee alternatives PF Store: Save 35% on your purchase Proactiv: Save 25% on skincare solutions Shark/Ninja: Use a 13% stackable discount code on both Shark and Ninja products 1-800 Flowers: Save 30% on a curated collection of 50+ gifts WeightWatchers: Pay $10/month for 10 months + first month free Beyond the PerksFest savings, Planet Fitness' year-round PF Perks program continues to offer members exclusive deals and discounts from their favorite brands, supporting their ongoing commitment to strength and wellness. To view all of the special Perks that Planet Fitness members have access to during PerksFest and throughout the year, or for more information, download the PF App or visit Members can also shop for Planet Fitness apparel, gear and more at *U.S. locations only **Restrictions apply. Must be a Planet Fitness member. Valid at participating U.S. locations only. Offers valid on select products only, see specific offer for details. All trademarks are property of their respective owners. ©2025 Planet Fitness Franchising About Planet Fitness Founded in 1992 in Dover, NH, Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the world by number of members and locations. As of December 31, 2024, Planet Fitness had approximately 19.7 million members and 2,722 clubs in 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia, and Spain. The Company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone®. More than 90% of Planet Fitness stores are owned and operated by independent business men and women.
