Latest news with #PlanetFitness'
Yahoo
5 days 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
Indianapolis Star
28-05-2025
- Sport
- Indianapolis Star
Indiana teens get free gym access to Planet Fitness with summer pass; how to sign up
Planet Fitness is once again offering teenagers a chance to work out in any of the company's more than 2,700 gyms for free over the summer. That includes all 66 Planet Fitness locations in Indiana. Here's what Hoosier parents should know about the High School Summer Pass program, who's eligible, and how to enroll. Planet Fitness' summer pass program begins Sunday, June 1, 2025, and lasts until Sunday, Aug. 31, 2025, the fitness club said. Story continues after photo gallery. All teenagers between the ages of 14 and 19 can participate in the program. You can sign up by pre-registering for the summer pass program online. Teens under the age of 18 will need their parent or legal guardian to sign a waiver. Parents can also sign their teen up for the program in person at any Planet Fitness location. After the waiver is signed, teens are able to work out independently. Those who sign up for a summer pass can enter the Planet Fitness High School Summer Pass Contest for a chance to win scholarship money. To enter, students can submit a video that details their experience during the program by uploading it to TikTok and tagging @planetfitness using the hashtags #HSSP23US and #contest. Planet Fitness will award 10 students a $10,000 scholarship each. Yes, if they have a Planet Fitness membership, the company said. The free program is available only to teens. Yes, you need to download the Planet Fitness app at the Apple App Store or at Google Play to participate in the program. Parents or teens will have to create an account with the same email used to sign up for the High School Summer Pass. On June 1, the pass will automatically link to the account. All participants will have access to the free fitness classes offered through the Planet Fitness PE@PF program. More summertime things to do: 100+ free live concerts around central Indiana during summer 2025.
Yahoo
28-05-2025
- General
- Yahoo
Planet Fitness summer program allows teens to work out for free. How to sign up
Summer break is almost here, and if you're not sure how to keep your kids busy, Planet Fitness' summer program could be the perfect solution. From June 1 to Aug. 31, Planet Fitness offers a High School Summer Pass that allows teens between the ages of 14 and 19 the opportunity to work out for free. There are no time restrictions with the offer, so whether your kid is home from college needing to sweat some stress out after their internship or a high school student looking to hit the weights in the morning before preseason starts, Planet Fitness facilities will be accessible to program participants at any time they prefer. A summer pass also grants participants access to workout classes held at their facility and workout circuits available in the Planet Fitness app. To sign up for a summer pass, register online or visit your closest gym location. If you are under 18 years of age, you must sign up with a parent or guardian. Preregistration began on May 19 and allows participants to secure their summer membership ahead of the program's start on June 1. You'll need to create a High School Summer Pass account and download the Planet Fitness app to receive your digital club pass. Program participants are permitted to use only the location where they sign up. If you sign up for the incorrect location, you can easily re-register at your preferred gym. New beach curfew: Another Delaware beach town just adopted a youth curfew 301 Main St., Christiana 1005 N. State St., Dover 703 N. Broad St., Middletown 696A N. DuPont Blvd., Milford 28595 DuPont Blvd. #5, Millsboro 53 Marrows Road, Newark 148 Sunset Blvd., New Castle 800 Norman Eskridge Highway, Seaford 36 N. Cory Lane, Smyrna 2201 Farrand Drive, Stanton 4221 Concord Pike, Talleyville 900 S. Justison St., Wilmington The latest home sale trends: Delaware home sales buck national trend. New Castle leads sales; Sussex has highest prices Got a tip or a story idea? Contact Krys'tal Griffin at kgriffin@ This article originally appeared on Delaware News Journal: Planet Fitness' High School Summer Pass give teens free gym access
Yahoo
23-05-2025
- Business
- Yahoo
Meet the Growth Stock Up 61% in the Past 1 Year
New store openings, coupled with comparable sales growth, helped this business drive a double-digit revenue gain in Q1. Management believes there is a tremendous expansion opportunity, which is supported by a franchisee operating model. Investors looking to buy shares today must consider the valuation. 10 stocks we like better than Planet Fitness › In the past 12 months, the S&P 500 index has generated a total return of 13% (as of May 21). This is a wonderful outcome, despite there being a ton of volatility in the past three months, thanks to uncertainty about trade policies and the overall economy. But some businesses have fared much better. There's one growth stock that has handily outperformed the broader index, as it's up 61% in the past year. Continue reading to learn what this company is and whether or not it should be in your portfolio. Investors should become familiar with Planet Fitness (NYSE: PLNT). The low-cost fitness center chain reported solid financial results for the three-month period that ended March 31 (Q1 2025). Revenue increased 11.5% to a total of $277 million. The top-line figure was driven by the opening of 19 net new locations, bringing the total to 2,741. Besides the U.S., Planet Fitness has a presence in Canada, Panama, Mexico, Australia, and Spain. Further supporting the revenue gain was same-store sales (SSS) growth of 6.1%. This is a key performance metric for any retail-based business. It demonstrates increasing productivity from existing locations. To see a positive figure here is definitely an encouraging sign. Planet Fitness' management team remains optimistic in the face of ongoing macro uncertainty. They expect SSS to rise between 5% and 6% in 2025, with revenue to increase by 10%. The plan is to open 160 to 170 new locations this year. Planet Fitness made headlines a year ago when it decided to increase the price of its basic membership option from $10, where it had stood for 26 years, to $15 per month. Even at the higher monthly rate, it's difficult to argue that the business doesn't offer customers a very compelling value proposition. This is demonstrated by Planet Fitness adding a notable 900,000 new members in Q1, now bringing the total to a whopping 20.6 million. This huge figure clearly highlights an incredible product-market fit. There are fears about a potential economic downturn on the horizon in the not-too-distant future. The fact that Planet Fitness' cost is so low could help it minimize membership churn better than other more expensive rivals might deal with. Looking ahead, there appears to still be a sizable growth runway for Planet Fitness to tackle. Executives believe that in the U.S., the business could one day get to 5,000 fitness clubs. At that level, revenue and earnings would surely be much higher than they are today. Operating a franchise model helps, where only 10% of the company's locations are owned directly by Planet Fitness. This puts the capital requirements onto third-party franchisee partners, which helps fuel growth for the business in an asset-light way. Franchisees get access to the brand name, operational guidance, and marketing support in an effort to reap the financial gains. This setup has helped the company's profitability. In the past decade, Planet Fitness has reported an average operating margin of 26%. Shares of Planet Fitness have been on an absolute tear in the past 12 months. Thanks to such a stellar performance that significantly outperforms the S&P 500, the valuation isn't that attractive, though. As of this writing, investors can scoop up the stock at a forward price-to-earnings (P/E) ratio of 35.6. That looks expensive, in my opinion, especially when you consider that consensus forecasts call for earnings per share to rise at an annualized pace of about 15% between 2024 and 2027. The valuation definitely isn't cheap. This is a key reason why I don't believe the stock is a no-brainer buy right now. However, this might be the best way to gain exposure to the fitness industry. Interested investors might want to consider dollar-cost averaging into the stock if they're so bullish. Before you buy stock in Planet Fitness, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Planet Fitness wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $640,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $814,127!* Now, it's worth noting Stock Advisor's total average return is 963% — a market-crushing outperformance compared to 168% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Planet Fitness. The Motley Fool has a disclosure policy. Meet the Growth Stock Up 61% in the Past 1 Year was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
22-05-2025
- Business
- CNBC
This fitness stock is a buy as sales momentum is set to continue, Stifel says
Growth in Planet Fitness is nowhere near done, according to Stifel. Analyst Chris O'Cull upgraded shares of the gym chain to buy from hold and raised his price target to $120 from $82. That new objective suggest shares of Planet Fitness could jump roughly 15% from their latest close. The stock has rallied 10% this month after the company reaffirmed its full-year earnings per share, revenue and system-wide same club sales growth. "Recent results suggest gross joins have stabilized, and we believe there are several potential catalysts to keep comparable sales in the mid-to-high single-digit range over the next couple of years," O'Cull said. "The company has improved its marketing efforts, but we believe there is considerable runway for further improvement," O'Cull continued, referring to advertising campaigns he has found encouraging given their messaging that emphasizes Planet Fitness' value as an affordable and nonjudgmental gym. PLNT 1Y mountain Planet Fitness stock performance. According to O'Cull, Planet Fitness locations could see steady improvement in net new unit growth over the next few years given strong top-line performance and ongoing efforts to reduce investment costs. Fueling its strong growth potential is the company's ability to the pricing of its Black Card monthly membership plan from $24.99 to $29.99 later this year, the analyst noted. Planet Fitness also has "promising avenues" to improve the overall value proposition of its Black Card Spa, by expanding potential upgrades to locations' spa areas with the availability of spray tanning, red light therapy and cryotherapy services. "We believe tests to upgrade the Black Card Spa are yielding positive results and could provide new reasons to join. Relative to other consumer-facing segments, Planet's low-cost membership model should also prove relatively resilient in the event of a downturn in consumer spending," O'Cull said. O'Cull also pointed out that efforts to include gym membership costs under individuals' Health Savings Accounts could drive memberships for the fitness industry, potentially benefitting Planet Fitness.
